Raydium (RAY) has shown notable price momentum lately. The decentralized exchange (DEX) on Solana’s network has seen its price rise over 47% in the last week.
The surge is attributed to a mix of robust transaction volumes. Moreover, Raydium’s unique fee structure, and overall increased activity on the Solana blockchain have led to the surge.
Analysts and trading experts have been closely following Raydium’s price action, discussing potential future trends and underlying factors driving the token’s performance.
Increased Solana Activity Drives Raydium Growth
One of the main reasons for RAY’s recent increases is Solana’s increased trading activity. The primary DEX on the Solana blockchain, Raydium, is essential because it supports liquidity pools that manage the vast majority of the network’s transaction volumes.
Hence, this rising activity has been beneficial for Raydium, as each transaction contributes to its buyback mechanism, effectively boosting RAY’s price. The influence of Solana’s growth on RAY’s price was highlighted by crypto analyst D3f4ult Trades, who pointed out the token’s potential when it was trading around $0.80.
Since then, increased Solana volumes have supported consistent RAY buybacks, elevating its price higher.
first called $ray back at $0.80 because i studied their tokenomics & was bullish on SOLthey facilitate the majority of transactions through the raydium LPs & a portion of fees go to buy backsHigh Vol on Solana = RAY price up (+30% today)this is my top alt pick to new ATHs https://t.co/Hv6aKly9Nu pic.twitter.com/cLFq9G3YCc
— D3f4ult Trades (@_d3f4ult) November 6, 2024
Raydium’s Buyback Mechanism Fuels Price Action
Raydium’s unique fee structure has been instrumental in sustaining its price surge. Fees generated through its DEX are used to buy back RAY tokens, thus reducing supply and potentially increasing demand.
As per insights shared by INF CryptoLab, Raydium has bought back over 38 million RAY tokens, fueled by over $300 billion in trading volume on the platform. Furthermore, the DEX saw a substantial increase in users—up by 208% in 2024—along with holding $1.41 billion in assets.
@RaydiumProtocol, Solana’s top DEX, saw a 208% rise in active users in 2024, with $1.41B in assets and 60.7% of DEX trading volume. Its fee structure buys back $RAY, with 38M tokens purchased and over $300B in trading volume. With a low annual inflation of 1.9M $RAY, Raydium… pic.twitter.com/7L7N8m1GVI
— INF CryptoLab (@INF_CryptoLab) November 7, 2024
With a low annual inflation rate of just 1.9 million RAY, Raydium’s model continues to attract investor attention, supporting its role as a key player in Solana’s ecosystem.
Read also: Why Is Lido DAO Pumping? Expert Outlines LDO Price Path to $3
Technical Analysis Shows Bullish Patterns
Technical analysis from World Of Charts indicates a strong bullish outlook for Raydium. RAY broke out of a symmetrical triangle pattern, which often signals a bullish shift in momentum.
The breakout led to rapid price gains, and according to World Of Charts, the token could potentially reach a target level above $14. The analyst also noted new support forming around the $2.00 level, while resistance could be encountered at $10 and $14 as RAY’s price rises.
Source: WorldOfCharts Market Sentiment and Social Media Momentum
The rally in RAY’s price has also been fueled by positive market sentiment, highlighted through social media.
The tweet from World Of Charts, stating “100% profit” on RAY following a recent market event, has amplified investor enthusiasm.
Additionally, he viewed Raydium as a leader in crypto market recovery. This sentiment aligns with the robust price activity and rising volumes observed on Solana, further driving RAY’s trajectory upwards.
At publication, Raydium trades at $4.71 with a daily trading volume of $439.2 million, reflecting sustained interest and bullish activity. The ongoing performance will likely be shaped by Solana’s network activity. Besides Raydium’s internal buyback structure, which remains integral to the token’s upward trend will be key.
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