Pump.fun self-hosted AMM, can Raydium still monopolize the meme liquidity pool?
Original Author: CryptoBaci, Crypto Researcher
Original Translation: ChatGPT
Editor's Note: This article analyzes Pump.fun's launch of a new AMM challenging Raydium's monopoly position. Pump.fun aims to reduce reliance on Raydium through an independent liquidity pool, potentially causing liquidity outflow and impacting Raydium's market share. The article also discusses the advantages and risks of the new AMM, especially liquidity issues and potential vulnerabilities.
The following is the original content (slightly rephrased for better readability):
Pump.fun has just introduced its own AMM, which may indicate that Pump.fun is no longer relying on Raydium. They have launched their own liquidity pool, and liquidity may begin to shift away from Raydium. This implies:
• Meme coins may no longer need Raydium.
• Pump.fun will keep all fees within its own ecosystem.
• There may be LP rewards (similar to other DEXs).
The first test token $CRACK has been added to the liquidity pool.

So far, all Meme coin liquidity has relied on Raydium. But now:
• You create a token and it can be traded immediately.
• Traders do not need to switch platforms.
• Pump.fun is becoming a fully independent ecosystem.
This may shift the power balance on Solana.

Advantages of the new AMM:
• Instant liquidity without relying on external platforms.
• Fully integrated with Pump.fun.
• Early opportunities for traders → arbitrage and potential system vulnerabilities.
• If this project is successful, it is an early opportunity to enter a new market.

Risks and Drawbacks:
• Still in beta stage → potential vulnerabilities and security risks.
• Liquidity has not reached Raydium's depth yet.
• There is no guarantee that traders will fully migrate to this AMM.
It's either Pump.fun dominates the market share, or this AMM remains niche.

How does this affect $RAY?
Raydium has already felt the pressure. $RAY dropped 10% after the AMM release news. Why?
• If liquidity starts flowing out, Raydium's pool revenues will be impacted.
• Decrease in trading volume = reduced interest in the DEX = further price decline.
• If this trend continues, $RAY could face an even bigger hit.
Raydium is losing control of Solana liquidity.

What to do next?
• Try the new AMM.
• Monitor liquidity and new tokens.
• Continue to observe Raydium's performance—can they defend their position?

You may also like

Duan Yongping establishes a position in a cryptocurrency company for the first time: Why Circle?

Vitalik: What is the key to the next phase of Ethereum?

Interlace: A global leader in Agentic Payment and stablecoin infrastructure platform, building the next generation of digital financial foundation

Morning Report | Musk's xAI launches Skills; Duan Yongping to first build position in Circle in Q1 2026; Polymarket partners with Nasdaq to launch prediction market

Dialogue with Lead Bank Founder Jackie: American Banks Re-embrace Crypto

Vitalik: What we need to do is not to fight against AI, but to create a sanctuary

Morning News | VanEck and Grayscale submitted BNB ETF amendments on the same day; BlackRock discusses investing billions of dollars in SpaceX's IPO; Michael Saylor releases Bitcoin Tracker information again

Crypto ETF Weekly | Last week, the net outflow of Bitcoin spot ETFs in the United States was $995 million; the net outflow of Ethereum spot ETFs in the United States was $255 million

This Week's News Preview | The Federal Reserve Releases the Last FOMC Minutes of the "Powell Era"

Blockchain Capital Partner: Most people's understanding of on-chain economy is narrow

The ambition of "one account trading global assets": How does CoinUp.io break down asset barriers to become an industry dark horse?

How long will it take for the GPU futures market when computing power is commoditized?

Harvard University loses $150 million in cryptocurrency! Has completely liquidated Ethereum and significantly reduced its Bitcoin ETF positions

BNB Chain releases a research report exploring the migration path of BSC to post-quantum cryptography

After the number of developers was halved: Crypto is not dead, it has just handed over talent to AI

"JUST 6th Anniversary x GasFree Super Carnival Month" is here: Enjoy "0" Gas transfer freedom and share a prize pool of 10,000 USDT

Morning News | AEON completes $8 million Pre-Seed round financing led by YZi Labs; Goldman Sachs liquidates XRP and Solana ETF holdings in Q1; Strategy increased its holdings by 24,869 BTC last week

