Raydium is an automated market maker (AMM) and liquidity provider built on the Solana blockchain that provides on-chain liquidity. Furthermore, funds deposited into Raydium are converted into limit orders for the Serum decentralized exchange (DEX). RAY, the native token of this crypto platform, had a good time in the market, with the trading volume increasing to over 117% in 24 hours. In this article, let’s explore further about the recent surge , the underlying causes, recent collaborations, and crucial market metrics.
Bitcoin Price Depreciation and Raydium Price Increase
Bitcoin’s price experienced some retracement after breaking a couple of consecutive all-time highs, with the price declining to $66k. At press time, Bitcoin’s price is above $66.8k and is already making a recovery. Within the period of Bitcoin’s depreciation, there was a massive rally from Raydium, with over 80x growth in the weekly chart.
Furthermore, in the past 30 days, Raydium witnessed an over 140% increase, creating a profitable avenue for traders. However, the primary focus is the trading volume of this token, which increased by over 117% to more than $600 million in 24 hours. RAY’s market valuation maintained the same momentum, rising over 34% to $635 million.
Major Drivers of Raydium’s Massive Increase
The increase in Raydium’s total value locked (TVL) is a significant contributor to the massive increase in price, reaching close to $500 million. Apparently, from March, the TVL moved from $175 million on the 1st to more than $483 million on the 18th. Furthermore, there’s an increase in Raydium’s staking activity, surging from a meager $35 million to over $75 million on the 18th. Increasing fees from users led to growth in network activity, reaching a peak of over $13 million on March 10th.
Secondly, the growing liquidity and user engagement on Raydium are among the principal pillars of growth. Data from DefiLlama shows close to a 2x growth in this platform’s liquidity, increasing from less than $20 million to over $34 million on March 18th. Other vital mentions include the revenue generated from blockchain transactions, at over $1.8 million.
Raydium Creates Hype with Rebase Collaboration
On Twitter, Rebase announced a new collaboration with Raydium, leading to attention and hype around the Raydium blockchain. Rebase is an NFT crypto project aiming to reinvent how the world interacts with the physical and digital by bridging the real world and the metaverse. The announcement on Twitter was to make Raydium their primary liquidity destination for $IRL on the Solana blockchain. Apparently, this happened on the 12th of March, and there’s already a massive increase in Raydium’s liquidity, touching $34.3 million on March 18th.
Wrapping Up
As Bitcoin declined below $70k, hitting $66k, Raydium was one of the rare gems maintaining bullish momentum. Experiencing an extraordinary growth, the token saw over 80x increase in the weekly chart, attracting over $600 million in trading volume, and soaring by over 117%. Furthermore, the TVL and the liquidity primarily contributed to this, with each of them touching over $483 million and $34 million, respectively. With the current situation, Raydium has two options: continue the bullish momentum or a retracement. Which path is it likely to follow?
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. So, the author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
