RAY, the local governance token for Raydium, Solana’s automated market maker (AMM) for decentralized exchange (DEX), rose 30% on May 17 before reversing gains and tumbling to spot prices.
Ray prices are under pressure
According to CoinMarketCap data On May 30, RAY is trading at $0.19 and is stable against the US dollar, Bitcoin and Ethereum in the last trading day.
RAY has a market capitalization of $41.2M at this rate, with an average trading volume of $2M in the last 24 hours.
At this pace, RAY is still in a bearish formation as the bears have erased the gains posted on May 17, aligning the token with the bears from mid-February 2023.
Like Solana and the tokens built on this network, RAY’s price action has continued downward and has not reversed losses since mid-November 2022.
The collapse of FTX, the cryptocurrency exchange, and Alameda Research, the investment wing of FTX, which is heavily invested in Solana, led to a sharp sell-off of SOL, which negatively affected RAY and other ecosystems.
Raydium updates
RAY’s sharp price expansion on May 17 coincided with Raydium DEX’s upgrade to V.2.10.11.
According to the development team, the decision was reached after the server was loaded due to abuse of the API. Specifically, there was a file Almost 3x jump in API tests in April compared to March 2023. The extra load strained the Raydium servers, disrupting connectivity.
The team responsible for the project stated:
Raydium’s APIs were pressed more than 50 billion times in April, up from 18 billion in March. May numbers are set to surpass April highs. This highlights how much stress the servers have been under and why the issues arose. Nearly 2,000 new pools were created in the first two weeks of May, bringing the total number of pools at Raydium to nearly 8,000.
This update, V.2.10.11, corrects this issue. Along with an 11x increase in server capacity, there have been several bug fixes that the exchange expects to “significantly improve UI responsiveness.” While the update was enthusiastically received, the momentum has waned, and RAY is trading near the May 2023 lows.
trackers Displays Raydium’s total value locked (TVL) is about $30 million as of May 30, down from $2.2 billion recorded in mid-November 2021. Meanwhile, there was a notable note He falls in the number of unique active wallets (UAW) as of early May 2023, according to DappRadar.
The downturn in the number of users coincides with the closing of the RAY claim portal on May 14th. This gate was opened after the December 2022 hack, when DEX lost more than $2 million. The hacker drained user funds from various Raydium liquidity pools without burning or owning any liquidity pool (LP) tokens.
Featured image from Canva, chart from TradingView
