While Raydium's RAY token attracts attention with its high leveraged transactions and record trading volume, it is emphasized that overbought positions can pose a risk in price declines.
Solana-based decentralized exchange Raydium’s native token, RAY, is gaining traction in the crypto market with rising funding rates and overbought positions, according to CoinDesk analysts. However, this intense interest could lead to risky market dynamics.
High Funding Rates in RAY Coin$RAY
According to VeloData, the RAY token has become the most notable asset among all tokens, with annualized perpetual futures funding rates exceeding 160%. This indicates that overleveraged long positions are forming in the market. However, experts note that such imbalances can lead to the rapid closing of long positions during price declines, which could further deepen the price decline.
Raydium’s trading volume reached $117.8 billion this month, more than double the total volume of Ethereum-based decentralized exchanges. It also generated $175 million in trading fees, surpassing Ethereum’s $168 million in revenue. However, much of that volume came during the memecoin craze at the beginning of the month, and Raydium’s momentum has slowed in recent weeks.
Despite the recent 17% correction, RAY gained 67% in value throughout the month. However, experts point out that the fundamental dynamics supporting the price increase are weakening as the memecoin effect begins to wane.
RAY, which has increased by 1,350% in a year, continues to be traded at $5.4 at the time of writing, with a 3.7% pullback in the last 24 hours.