Raydium crypto flips $1 – Can $190M in buybacks sustain RAY’s rally?

Raydium [RAY] is experiencing strong upside momentum. After holding $0.80, the altcoin rallied to flip $1, touching an 8-month high of $1.19.

At press time, Raydium was trading around $1.09, up 33% on the daily charts. At the same time, trading volume soared 876% to $114 million while the market cap surged 32%.

Such a strong jump in volume pointed to extremely high market activity, especially on the bullish side. 

Raydium’s 86% token buybacks lower market pressure

Market participants have noted that the protocol’s buyback program has gone a long way to stabilize the market. 

According to Mst|Raydium, the Raydium Protocol is currently fully aligned with the token. As such, 86% of the protocol’s total revenue goes directly to token buybacks. 

For example, on the 31st of August, Raydium announced its fee-funded buyback program and purchased more than 30% of the total RAY circulating supply. In fact, the protocol has spent $190 million in cumulative buybacks to acquire over 69 million RAY. 

Raydium routes 12% of every swap fee to open market RAY purchases across three pools.  At the same time, the treasury holds the rest with 4% from swap fees. This arrangement has so far supported future demand and reduced market pressure.