The post Examining Raydium’s 280% monthly surge and what’s next for RAY’s price appeared on BitcoinEthereumNews.com.

Journalist Posted: November 17, 2024 Raydium gained by nearly 300% in price as fees increased by more than 10x from September The sudden, swift gains have led to an overextended RAY market Raydium [RAY] rallied by 280% from 10 October to 9 November, before facing a pullback on the charts. The Automated Market Maker (AMM) and liquidity provider on the Solana [SOL] blockchain saw a rapid hike in fees over the last 30 days too. Source: DefiLlama On 21 October, Raydium accrued daily fees of $3.4 million, surpassing Ethereum’s [ETH] $3.35 million for the same day. Here, it should be noted that Ethereum has seen a steady drop in fees since the Dencun upgrade in March. Raydium revenue up by leaps and bounds Source: DefiLlama In September, Raydium’s fees were hovering around the $300k-mark. On 13 November, it hit $10.73 million, with revenue at $693.36k. Fees are collected from swaps and a portion of this is used to market buy RAY and distribute it to token stakers. The swift hike in revenue can be attributed majorly to the rising popularity of memecoins in the Solana network. This drove up the demand for SOL and yielded higher fees for Raydium, driving RAY prices up due to greater demand. Source: Santiment AMBCrypto found that RAY might be overextended in the short term and may be due for a correction. The 30-day MVRV Ratio was at 26.37% and hit a local high of 67.3% on 09 November. The spike in Dormant Circulation during that time revealed greater token movement. This likely pointed to a hike in selling pressure from profit-taking activity. Also, the Mean Coin Age (MCA) has been falling since September, but it began to recover over the last few days. However, at press time, it was not signaling accumulation yet. Thus,…

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Filed under: News - @ November 16, 2024 11:03 pm