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Raydium - Issue #56
In this newsletter, we are profiling Raydium [RAY]. In previous newsletters, we have profiled Bitcoin, Cardano, Solana, Litecoin and many others. Access all our newsletters in our archives at madcapx.substack.com.
The Short of It
This newsletter enjoys finding interesting projects throughout the crypto space. Raydium, as important as it is to the Solana ecosystem, might be rather dull since it is mainly just a copy of yet another decentralized exchange; but, it is still a worthwhile look for the investor, liquidity provider and crypto enthusiast.
Radium, launched in early 2021, is a liquidity provider and automated market maker (AMM) for the Solana Serum decentralized exchange (DEX). The creators have chosen to remain anonymous, but their leader goes by the pseudonym “AlphaRay.” RAY is the asset used for the ecosystem, and it is available as both an Ethereum ERC20 token and Solana blockchain token.
There is a maximum supply of 555 million RAY. Each time RAY is traded, a 0.25% fee is charged, which then gets redistributed to stakers and liquidity providers. The liquidity providers get a substantially more significant portion of that fee, making it more enticing to get involved in liquidity rather than just staking. The RAY token is used for staking, liquidity mining incentives, governance, and eligibility for new launch projects.
The Raydium DEX is basically a copy of the Uniswap code modified to work with Solana. Raydium has become one of the top DEXs in terms of trading volume. Access to a central order book guarantees super-fast trading. Most other DEXs are only able to access liquidity within their own pools and do not have access to a central order book. Some of the bonus features of this DEX include the ability to use TradingView charts and to be able to set order limits. All ERC20-based tokens on Raydium are Sollet wrapped (meaning they are wrapped by Serum using the Sollet bridge). In the future, wrapping systems like REN may be directly integrated. There are a number of supported web wallets, but the recommended one is called Phantom (available from https://phantom.app/).
Raydium also has a launchpad platform called “AcceleRaytor” to promote the growth of the Solana ecosystem. Projects driven by this system are fully vetted and a great way for the associated teams to get funding and drive liquidity in a decentralized manner. If your team is interested in applying, fill out their web form.
Competitors are other decentralized exchanges, such as Uniswap and Sushswap. Raydium has much lower fees than the Ethereum-based DEXs and is much speedier.
This first chart of RAY/USD pairing on the daily chart goes back to February 2021. In July, it hit a low of $2.43 and then rocketed up to a high of $16.94 in September for an increase of 582%. It came down 45% from that high to settle into a sideways range we currently see RAY inside of. That range is about 40-45%.
This next RAY/USD chart from a TradingView user zooms to a 12 hour. Since yesterday it has broken through the downward trendline and could go up to test the $13 area with a possible correction and then higher again.
The Other Trend Lines
Last week, our newsletter was on Litentry and its potential to move up the ranks on CoinMarketCap from #417. This week it is #358, with a spike that started about three days ago. On the LIT/BTC chart, it went as high as 85% from the previous week's newsletter. Though it has sold off recently, it did make a nice wick above the top of the resistance line. For a proper breakout, it would need to close above the current resistance.
It is great to see what other traders are thinking of where Bitcoin is going to next.
Here is TreeTrader from TradingView Ideas section.
As we mentioned before, BTC needs to do a Correction to start a Good Bullish Trend afterward! as you can see BTC has moved exactly toward our Expectation and reached 54k and now we Expect a Bullish Wave (5th wave of Elliot Impulse waves!) to Reach 77k! we have to wait & see if that BTC can Break It's ATH once again and Complete the Expected movement! There is also a Hidden Bullish Divergence on MACD which Helps Us on The way to 77k! after The Completion of the 5th wave we Expect a Big Correction Phase to happen.
In our last Bitcoin analysis we were looking for Bitcoin to come back to the structure and 50 fibonacci. Price tapped the 50 fibonacci perfectly and bounced up. We could be on the verge of a breakout and the next big impulse.
- Watch for a break of the correction and enter with stops below the 50 fibonacci
- If we come back down to the 50 fibonacci, enter with stops below the ascending trendline
- Target the ATH's as first target and then HODL the rest
Big moves coming, don't miss it!
— From TradingView user ALTsignals
This portfolio section gives you an idea of what sort of return you can get when investing in crypto assets.
BTC/USD FUND is up 442% since October 1st, 2020. Since this is a long-term holding, it is best kept in cold wallet storage or a safe custody solution. We continue to see a long-term hold position as our best stable alternative. This past week bitcoin has been ranging between $53,256 and $59,398 USD in value.
FUND 3 started on November 16, 2020, with $1000 USD in value and was invested into BTC, LTC, ETH, and ADA. The total amount of BTC value from the four coins has had a gain of 87% since the start. The USD fund value is up 555% since the beginning. We will hold these positions to see how well it does against our BTC-only portfolio. LTC is down -17% against BTC. ETH is up 174% against BTC since the start. ADA has a gain of 345% against BTC and 1443% to USD.
BLWX Fund started on February 22, 2021. They all are assets we have profiled in the last few months, and we are interested in how they will perform in 2021 against BTC. BAT has a gain of 167% against BTC since the start; LINK is down -24%, WAVES is up 77%, XMR is down -5%. Overall, against BTC, the fund is up 54% and 64% against USD.
Overall, Bitcoin should be your first choice as an investment in crypto, though many digital assets can give you amazing gains if you manage your risk. As a long-term investor, we see it as our largest portfolio investment. If you are a day trader, there are many great assets to put on your watch list. Look through our previous newsletters to find some.
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Use Netcoins as a Canadian to buy and sell BTC, ETH or LTC using Canadian dollars. Get a $10 bonus when you signup using this referral link.
Looking for a good crypto phone app that comes with a metal VISA card that rewards you for spending and staking? Check out the crypto.com wallet.
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Madbyte does have its own token called MADX on the Ethereum network and Madbyte on the Waves network. The two tokens are interchangeable on Madcapx.com.
A portion of these newsletters is now available in softcover book form: “Crypto Conspectus: A quick guide to 50 cryptocurrency projects.” Available from Amazon.
Disclaimer: Nothing in this newsletter is intended to serve as financial advice. Therefore, do your own research and due diligence before applying any of the techniques highlighted in this post. Any risks or trades based on this newsletter are committed at your own risk.