As the cryptocurrency market recovers from Tuesday's crash, some coins are already taking off again. First in line: Raydium (RAY). Since yesterday, the price of RAY has risen by over 40%. Is it worth buying Raydium now?
After Raydium, like almost every other cryptocurrency, lost a lot of value on Tuesday, the coin has made an astonishing price recovery since yesterday morning. From a low of just over $10, Raydium has climbed back to over $15.
After a brief pullback this morning, the price of RAY really picked up speed from 7:20 this morning. By midday, the price had risen by more than 24% and was even able to cross the $16 mark. The last time Raydium managed this was at the beginning of May, during the first cryptographic peak of the year.
Thanks to the rapid price increase, Raydium now ranks 93rd among the largest crypto-currencies, with a market capitalization of around $1 billion. Trading volume has increased by over 60% in the last 24 hours.
What is Raydium?
Raydium is an automated market maker. It is designed to facilitate fast transactions while keeping fees low. The protocol, which runs on the Solana blockchain, is capable of moving liquidity from its pools to other parts of the network.
Users who provide liquidity to the respective pools can then earn money from the transaction fees that take place. Raydium is particularly interesting for new and growing projects. They can benefit from the increased liquidity offered by Raydium.
To give users access to the best asset prices, Raydium accesses the order flow of Serum – a decentralized exchange (DEX).
Raydium aims to address one of the biggest current weaknesses of DeFi platforms: slow and costly transactions. In doing so, Raydium leverages the specific advantages of the Solana blockchain and offers greater scalability than other DeFi projects.
Will Raydium continue to rise?
Tuesday's cryptocurrency crash has strongly undermined Raydium's share price performance so far. Prior to this, RAY's price had already seen a strong upward movement since July 20.
By the second half of August, Raydium had encountered stronger resistance in the $7.7-$8 range. This led to a two-week sideways movement with occasional, but ultimately unsuccessful, attempts to break higher.
Towards the end of August, Raydium finally broke through, and the price of RAY rose from $7 to $11.7 in a single day. Thereafter, however, Raydium failed to break the $13 barrier for good. It wasn't until last Tuesday that there was finally another breakout to the upside, which catapulted Raydium briefly to over $15.
The reason for this strong price increase was, of course, the equally strong run on Solana. Projects in the Solana ecosystem – such as Raydium – are currently enjoying enormous popularity with investors and analysts alike. So it's no surprise that investors are once again buying more and more Raydium.
So what is the forecast for the price of Raydium? Will raydium continue to rise? Although most analysts' forecasts have been optimistic in recent days, they haven't been able to keep up with the huge rise in RAY's price. The current price had only been predicted by many for 2022 or 2023.
Now, however, Raydium has created facts. So far, bulls don't seem to have lost their appetite for Raydium. But will this trend continue? If so, it probably wouldn't be the first surprise Raydium has caused this year.
