In the year 2024, RAY, the native cryptocurrency of the Raydium decentralized exchange (DEX) built on the Solana blockchain, has achieved a new peak that outshines its performance over the last two years.
Compared to Bitcoin (BTC), which also marked a new high on November 6th, RAY has exhibited more impressive gains in recent months.
An analysis of RAY’s price movement reveals a remarkable upward trajectory that originated from accumulation in September. Starting from a low of $1.35, the token showcased a parabolic surge with evident bullish momentum in October.
Within the last 24 hours, RAY reached a staggering $5.06, marking a substantial 276% increase from its September low.
For perspective, Bitcoin only saw a 45% gain from its September low to its most recent high.
Despite the remarkable performance, RAY still has considerable room for growth before reclaiming its previous all-time high of $17.80 in August 2021.
However, caution is advised as short-term corrections may be in the cards given RAY’s current overbought status.
Indicators such as bearish divergence with the Relative Strength Index (RSI) and a downward trend in the Money Flow Index (MFI) signal potential profit-taking activities in the market.
Implications of Raydium’s Success?
In the dynamic landscape of 2024, the Solana blockchain has witnessed remarkable adoption, with Raydium emerging as a prominent player among decentralized exchanges (DEXes).
A year ago, Raydium’s Total Value Locked (TVL) stood at under $40 million with token liquidity below $10,000. In the current landscape, both metrics have undergone significant growth, with TVL hitting a peak of $2.08 billion in October before a slight contraction to $1.50 billion. Concurrently, RAY token liquidity surged to $597 million.
The increasing TVL and token liquidity exemplify the escalating momentum of the Raydium DEX in tandem with Solana’s expanding ecosystem.
However, the most pronounced impact of this growth and network utilization is reflected in Raydium’s revenue and volume metrics.
Notable spikes in both volume and revenue were observed in March, June, and October, followed by periodic declines during less active periods.
For instance, the highest recorded token volume in 2024 amounted to around $406 million in March, while revenue peaked at $395,000 during the same month.
Recent data indicates a consistent uptrend in both token volume and revenue since September, corresponding to increased activity during bullish market conditions.
This trend underscores the significant influence of DEX activity on the demand for RAY, a pattern expected to persist as the ongoing bull market intensifies.