Raydium leads the daily gainers as RAY buybacks hit $640,000
Raydium's RAY token surged 20% in a day and roughly 68% on the week after a single-day buyback of $640,000 was reported. Here is what is driving the move.
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Raydium's native token $RAY jumped to a daily high of $1.46 before settling around $1.34, a gain of approximately 20% on the day and roughly 68% over the prior week, according to CoinMarketCap data.
A $640,000 Single-Day Buyback
@Raydium shared a Blockworks chart on September 9 showing that around $640,000 worth of RAY was repurchased from the open market in a single day. The figure reflects the protocol's standing rule: 12% of all swap fees collected across Raydium's pools route directly into open-market RAY purchases, automatically and on a continuous basis.
The fee split varies by pool type. For CLMM and CPMM pools, 84% of swap fees go to liquidity providers, 12% fund buybacks, and 4% flow to the treasury. Standard AMM v4 pools direct 88% to liquidity providers and the remaining 12% to buybacks. All bought-back tokens accumulate at a publicly visible on-chain address, making the program fully auditable.
Structural Supply Squeeze Behind the Rally
The single-day figure sits on top of a much larger cumulative picture. Raydium announced on August 31 that its fee-funded buyback program had accumulated more than 30% of RAY's circulating supply, with cumulative spending exceeding $190 million to acquire over 69 million RAY tokens, per AMBCrypto.
The pace of buybacks is tied directly to trading volume: more swaps generate more fees, and more fees send a larger share to the buyback wallet. Recent months saw a surge in activity linked to launchpad integrations, with trading volume hitting approximately $31.8 million during one notable spike, per Crypto Briefing. That combination of rising demand and a steadily shrinking float is what traders have been reacting to this week.
Raydium's fee structure and on-chain buyback mechanism set it apart from most DeFi protocols, which typically route the bulk of fee revenue to liquidity providers rather than supporting the native token directly. Whether the current pace of repurchases can sustain the price momentum will depend largely on how much trading activity the protocol continues to attract.
Sources:
Raydium Official Docs: RAY Buybacks
AMBCrypto: Raydium Buyback Program Surpasses 30% of Circulating Supply
Crypto Briefing: Raydium Token Surges Amid Solana DEX Activity Spike
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Crypto RichRich has been researching cryptocurrency and blockchain technology for eight years and has served as a senior analyst at BSCN since its founding in 2020. He focuses on fundamental analysis of early-stage crypto projects and tokens and has published in-depth research reports on over 200 emerging protocols. Rich also writes about broader technology and scientific trends and maintains active involvement in the crypto community through X/Twitter Spaces, and leading industry events.