- The launchpad for meme coins on Solana, Pump.fun, is vying for supremacy against the Raydium DEX.
- This meme coin launchpad has cut ties with Raydium and has captured a significant portion of the trading volume within the Solana ecosystem.
- SOL has emerged as the victor, experiencing a nearly 2% increase in value over the past 24 hours, amid a competitive landscape for revenue and users.
Solana (SOL) has risen nearly 2% in the last 24 hours, trading at 118.28 as of this Thursday. A decentralized exchange (DEX) and a meme coin launchpad operating on the Solana blockchain have engaged in a struggle for users and trade volume on the network.
Solana benefits from this competition, as both ventures are built on the SOL chain.
Protocols on Solana clash for supremacy
Pump.fun, known for boosting revenue and trading volumes within the Solana ecosystem, has ended its partnership with the Raydium DEX. Following the termination of this alliance, Pump.fun rolled out its own DEX to enable trading of meme coins introduced on its platform.
This rivalry has sparked fierce competition to attract market share, users, and transaction volume. Both Raydium and PumpSwap are competing for user engagement, with Pump.fun reportedly gaining more value through its meme coin launchpad while Raydium struggles, according to a recent research report published Wednesday.
Pump.fun’s automated market maker (AMM) DEX is less than a month old, and both platforms are anticipating an upswing in user sentiment and market conditions to fuel growth. Analysts have noted that Pump.fun’s DEX has gradually begun to take market share in terms of token volume.
Pump.fun’s DEX and Raydium | Source: Research report
Solana may benefit from this competitive landscape
So far, the competition between the two protocols has not negatively impacted Solana. While Pump.fun and Raydium vie for dominance, SOL has stabilized below $136, with $146 serving as a significant resistance level and $112 being a crucial support level.
SOL has gained nearly 2% over the last 24 hours, trading at $118.28 as of Thursday.
The Relative Strength Index (RSI) currently registers at 38, remaining above the “oversold” territory and indicating slight bearish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) has recently shown short red histogram bars after a prolonged period of green histogram bars above the neutral line, demonstrating trader indecision and a potential shift in market interest.
Should Solana maintain its upward trend, the token could potentially rise by around 23% and test resistance at $146.03. However, if Bitcoin were to experience a sudden decline or market correction, SOL could drop to support at $112, marking a decrease of more than 5% in price.
SOL/USDT daily price chart
Aside from price movements and incentives, market sentiment plays a crucial role for meme coins. Pump.fun has pivoted to regain control over declining revenues amidst waning activity. For the meme coin launchpad to reach previous performance levels, a broader market rally may be necessary.