Raydium price is on track for the third consecutive week of gains and is hovering at its highest level since January 2022 after it flipped Uniswap amid the ongoing Solana meme coin boom. The RAY token soared to a high of $6.32 on Friday, up by over 8,550% from its lowest level in 2023.
Raydium volume hits all-time high
Raydium has grown from a fairly small player in the blockchain industry earlier this year into the biggest name in the sector. It has flipped the biggest DEX networks like Uniswap, PancakeSwap, Aerodrome, and Curve Finance.
Data by DeFi Llama shows that Uniswap’s volume in the last seven days stood at over $31 billion, while Uniswap handled $20.54 billion. Its cumulative volume stands at $215 billion compared to Uniswap’s $1.53 trillion, while its 30-day volume was $73 billion.
These numbers mean that Raydium is now the fastest-growing parts of the Solana ecosystem, a trend that may continue in the coming months. Besides, Raydium operates only in Solana, while Uniswap exists in over 20 chains like Ethereum, Base, and Polygon.
Raydium ecosystem is doing well primarily because of Solana’s meme coin ecosystem, which is booming. The biggest meme coins are the likes of Bonk. Dogwifhat. Goatseus Maximus, Cat in a Dog World, and Book of Mreme.
Read more: Raydium (RAY) reaches one-year high following Bithumb listing
Notably, four of these coins have a market cap of over $1 billion, while all Solana meme coins are valued at more than $21 billion. Part of this growth is primarily because of the Pump.fun ecosystem, which is doing well as the market cap of all tokens generated in the platform stands at $7.4 billion. The biggest ones are PNUT, GOAT, ACT, Fwog.
Developers are preferring Solana for their meme coin launches because of its fast speeds and low transaction costs. It has also become fairly stable, with no major outage this year. Also, Solana is on track to overtake Ethereum in the coming months in terms of market cap if the ongoing trend continues.
Raydium, despite its low transaction fees, is making substantial sums of money because of its substantial volume. This week, the network made more money than Tether, the most popular stablecoin in the industry.
Raydium token has become one of the top DeFi coins. It has achieved a market cap of over $1.8 billion and a fully diluted valuation (FDV) of over $3.5 billion. Its volume in the past 24 hours jumped by 73%.
Raydium price forecast
The daily chart shows that the RAY token price has been in a strong bullish trend this year, helped by its strong volume. This rally saw the token jump above the key resistance level at $3.365 on November 5 of this year. This was an important level since it was the highest swing on March 18.
By moving above that level, Raydium invalidated the double-top pattern that was forming. It also invalidated that pattern when it flipped the crucial resistance point at $5.98 into a support level.
Raydium price has remained above the 50-day and 100-day Exponential Moving Averages (EMA), a sign of demand. The Relative Strength Index (RSI) and the MACD indicators have also jumped.
Therefore, there is a likelihood that the RAY price will continue soaring as investors target the next key resistance level at $10, which is about 56% above the current level.
A drop below the psychological support at $5 will invalidate the bullish view and point to more downside. Such a move is possible because of what is known as mean reversion, where an asset retests its moving averages.
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