Raydium hit back Monday on rumors that major volume driver Pump.Fun was preparing to launch its own AMM. Abandoning Raydium whole hog would be a "strategic miscalculation" for the massively popular — and profitable — memecoin factory,

The new AMM is in internal testing and, if released, may change the dynamics of liquidity in the Solana ecosystem. At present, only a minority of tokens from Pump.fun transfer to Raydium. By retaining liquidity on its own platform,

Pump.fun is reportedly cooking something big while the digital assets market struggles to regain the bullish momentum. The Solana based meme coin launching

Crypto watchers noticed the popular Solana tool apparently testing its own AMM in early Monday hours, dampening sentiment for tokens of its existing exchange.

PumpFun is testing its own AMM, potentially shifting liquidity control from Raydium and reshaping token trading on the Solana network.

Pump.Fun developing its own automated market maker could threaten Raydium's market dominance, Decrypt was told.

RAY has plunged doubled digits following Pump.fun's move to launch its AMM which would reduce dependence on Raydium for liquidity pools.

Raydium's token price fell 22% after the discovery of Pump.fun testing its own automated market maker system, which could redirect trading volume away from Raydium's platform.