RAY, the native governance token of Raidium, an automated market maker (AMM) decentralized exchange (DEX) on Solana, surged 30% on May 17 before turning upwards and falling back to the spot rate.
RAY price under pressure
According to CoinMarketCap data On May 30, RAY opened trading at a stable $0.19 against the US dollar, Bitcoin and Ethereum on the last trading day.
At this rate, RAY has a market capitalization of $41.2 million, with an average trading volume of $2 million over the last 24 hours.
At this pace, RAY is still in a bearish formation as the bears strip the gains recorded on May 17 and align the token with the bears of mid-February 2023 and beyond.
Similar to Solana and tokens based on this network, RAY’s bearish price action continues and has not reversed losses from mid-November 2022.
The collapse of crypto exchange FTX and Alameda Research, the investment arm of FTX that had invested heavily in Solana, caused SOL to plummet, negatively impacting RAY and the rest of the ecosystem.
radium update
The sharp increase in RAY price on May 17 coincided with the upgrade of Raydium DEX to version V.2.10.11.
According to the development team, this decision was made in response to the server load caused by abuse of the API. in particular, nearly triple the jump April API pings increased over March 2023. The extra load put a strain on Raydium’s servers, causing his connection to drop.
The team behind the project said:
Raydium’s API pings surpassed 50 billion in April, up from 18 billion in March. May’s figures are expected to surpass April’s highs. This reveals how stressed the server is and why the problem occurred. Nearly 2,000 new pools were created in his first two weeks in May, bringing Raydium’s total pool count to nearly 8,000.
This update V.2.10.11 helped to fix this issue. In addition to an 11x increase in server capacity, there were several bug fixes that the exchange hopes will “make the user interface much more responsive.” Despite the enthusiastic reception of the update, momentum has waned and RAY is trading near the May 2023 lows.
tracker show Radium’s total locked value (TVL) was around $30 million as of May 30, down from a record $2.2 billion recorded in mid-November 2021. drop According to DappRadar, the number of unique active wallets (UAW) has increased since early May 2023.
The drop in user numbers coincided with the closure of RAY Claim Portal on May 14th. The portal was launched after a December 2022 hack that cost DEX over $2 million. Hackers drained user funds from various Raydium liquidity pools without burning or owning any Liquidity Pool (LP) tokens.
Feature image from Canva, chart from TradingView