The RAY token, the native digital asset associated with the Raydium decentralized exchange (DEX) on the Solana blockchain, has recently reached a new peak that surpasses its performance over the past two years.
Notably, RAY has demonstrated stronger growth compared to Bitcoin (BTC) in the last couple of months, with Bitcoin also achieving a new high on November 6th.
An analysis of RAY’s price movement unveils a remarkable upward trend that originated from an accumulation phase starting in September. While the token was trading as low as $1.35 in September, bullish momentum took hold by October.
RAY surged to $5.06 within the last day, marking a remarkable 276% increase from its September low.
In contrast, Bitcoin only experienced a 45% rise from its lowest point in September to its recent high.
Despite its commendable performance, RAY still has significant potential for growth before reaching its all-time peak of $17.80 in August 2021.
However, given RAY’s current overbought status, it’s likely to face short-term corrections.
Indicators like the RSI showing bearish divergence with lower highs and the MFI signaling profit-taking suggest that adjustments may occur.
Is Raydium’s Performance a Reflection of the Greater Trend?
The Solana network has seen increased adoption in 2024, benefiting platforms like Raydium as prominent DEXes within the ecosystem.
Raydium’s Total Value Locked (TVL) and token liquidity have grown significantly in the past year. With TVL hitting $2.08 billion in October and then retreating to $1.50 billion, while RAY token liquidity soared to $597 million.
These developments highlight Raydium’s expanding influence in 2024 amid Solana’s ecosystem expansion.
This growth is also evident in Raydium’s revenue and volume data. Peaks in both metrics were observed in March, June, and October, followed by declines during other periods.
For instance, token volume reached a high of approximately $406 million in March, with revenue peaking at $395,000 in the same month.
Recent data indicates a consistent uptrend in both token volume and revenue since September, aligning with increased activity during bullish periods.
This trend emphasizes the significant impact of DEX activity on the demand for RAY, a pattern likely to persist as the bull market intensifies.