- RAY’s price has been parabolic since September, hitting a two-year high.
- Evaluate the correlation between RAY’s price action and Raydium’s performance against key indicators.
RAY, the native token of Solana’s (SOL) Raydium DEX, has hit a two-year high.
Notably, its performance so far over the past two months has outpaced Bitcoin (BTC), which reached a new high on November 6th.
A look at RAY’s price action reveals a parabolic performance rooted in September accumulation. The token traded as low as $1.35 in September, but by October it was clear that the bulls were fully in control.
RAY has surged to $5.06 in the past 24 hours, equivalent to a 276% increase from its September low.
For context, Bitcoin achieved a 45% upside from its September low to its recent local high.
Source: TradingView
Despite these achievements, RAY still has significant room for growth before reaching all-time highs. The token price peaked at $17.80 in August 2021.
Nonetheless, since RAY is extremely overbought, a short-term decline is likely.
The token had a bearish divergence from the lower highs on RSI. Additionally, MFIs are trending downward, indicating profit taking.
Reflection of radium performance?
The Solana blockchain is enjoying strong utility in 2024, and Raydium is benefiting from being one of the best DEXs.
Raydium’s TVL had token liquidity of less than $40 million and less than $10,000 exactly 12 months ago.
Both metrics have recorded impressive growth recently, with TVL peaking at $2.08 billion in October but then falling back to $1.5 billion. Meanwhile, RAY token liquidity has since soared to $597 million.
Source: DeFiLlama
This increase in TVL and token liquidity highlights Raydium DEX’s growth momentum in 2024 in line with Solana’s ecosystem growth.
However, this growth and network activity was more evident in Raydium’s revenue and volume data.
Both volume and revenue showed the highest gains in March, June, and October, before declining for the rest of the year.
For example, the highest token trading volume since the start of 2024 was approximately $406 million in March. Meanwhile, the highest profit in March was $395,000.
Source: DeFiLlama
Latest data shows that both token size and revenue have been increasing since September. This reflects a surge in activity during the bull period.
Read Raydium (RAY) Price Forecast for 2024-2025
This is also consistent with the observation that the same indicators decline during slow or weak months.
Based on the above observations, it was clear that DEX activity had a notable impact on RAY demand. This trend is likely to continue as the bull market heats up further.