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RAY, the native governance token of the Automated Market Maker (AMM) decentralized exchange (DEX) Radium on Solana, soared 30% on May 17 before reversing gains as spot rates declined.
Ray prices under pressure
according to coinmarketcap statistics On May 30, RAY is changing hands at $0.19, which is stable against USD, Bitcoin and Ethereum on the last trading day.
RAY’s market capitalization at this rate is $41.2 million, with an average trading volume of $2 million over the past 24 hours.
At this pace, RAY remains bearish as the gains posted on May 17 were pared by the bears, aligning the coin with the bears since mid-February 2023.
Like Solanas and tokens based on this network, RAY remains bearish in price action and has not reversed losses since mid-November 2022.
The collapse of FTX, a crypto exchange, and Alameda Research, the investment arm of FTX that was heavily invested in Solana, triggered a sharp selloff of SOL, which had a negative impact on RAY and other ecosystems.
radium update
The sharp expansion in RAY price on May 17 coincided with the upgrade of Raydium DEX to version V.2.10.11.
According to the development team, the decision was taken after the servers were loaded due to API abuse. In particular, there was approx 3X jump in API pings in April than in March 2023. The extra load put a strain on Raydium’s servers, causing the connection to drop.
The team behind the project said:
Radium’s API was pinged more than 50 billion times in April, up from 18 billion in March. The May figures are set to cross the April high. This highlights how stressed the servers are and why the problems have surfaced. Nearly 2,000 new pools were created in the first two weeks of May, taking the total number of radium pools to nearly 8,000.
This update, V.2.10.11, worked to fix this problem. In addition to increasing server capacity by 11X, there were several bug fixes that the exchange expected to “significantly improve user interface responsiveness”. While the update was received enthusiastically, momentum has waned, and RAY is trading near May 2023 lows.
trackers Show That Radium’s total value locked (TVL) is around $30 million as of May 30, down from $2.2 billion recorded in mid-November 2021. Meanwhile, something noteworthy has happened drop According to DappRadar, in the number of Unique Active Wallets (UAW) since the beginning of May 2023.
The reduction in the number of users coincides with the closure of the RAY claim portal on May 14. The portal was opened after a hack in December 2022, when the DEX suffered a loss of over $2 million. The hacker withdrew user funds from various Radium liquidity pools without burning or owning any Liquidity Pool (LP) tokens.
Feature image from Canva, chart from TradingView
