Raydium repurchases 30% of RAY supply amid market dominance

Raydium, the largest decentralized exchange on the Solana blockchain, has reached a significant milestone by repurchasing over 30% of the RAY token's total circulating supply. This buyback program, funded entirely by protocol trading fees rather than venture capital or token sales, has spent approximately $190 million to acquire over 69 million RAY tokens.

The buyback mechanism utilizes a portion of trading fees from every swap; for instance, in typical pools, 12% of fees are routed to the automated buyback program. These transactions are conducted on-chain and are publicly auditable.

In addition to the buyback program, Raydium has established a dominant position in Solana’s tokenized-equity market. Since June, the protocol has accounted for over 63% of all trading volume for tokenized stocks on Solana DEXs. During the second quarter, Raydium facilitated $1.63 billion in xStocks trading volume.

Following a strong rally that saw the RAY token rise from $0.60 in August to over $1.10 in September, the price has recently experienced a pullback. The token is currently testing a key support level near $1.4583, with analysts watching to see if it can rebound toward $1.60 or if it will continue to decline toward $1.10.