Raydium (RAY) is a decentralized exchange (DEX) and automated market maker (AMM) built on the Solana blockchain. It combines the speed and efficiency of Solana with the power of decentralized finance (DeFi), offering fast, low-cost trading while providing on-chain liquidity to OpenBook’s central limit order book. In 2025, Raydium has gained significant traction due to the memecoin boom and its integration with Pump.fun, making it one of the leading DEXs in the Solana ecosystem.
Why Raydium Is Gaining Popularity in 2025
Raydium’s rise in 2025 has been fueled by its strategic integration with Pump.fun, a Solana-based memecoin launchpad introduced in early 2025. The surging interest in Solana memecoins brought a wave of new users eager to trade trending tokens. By mid-2025, Raydium’s trading volume had increased by over 200% compared to the previous year, solidifying its status as the go-to platform for memecoin enthusiasts.
The exchange’s Total Value Locked (TVL) surged from under $130 million at the start of the year to more than $2.2 billion at the time of writing. This growth highlights Raydium’s role as a liquidity powerhouse within the Solana DeFi landscape. Its deep liquidity pools and minimal transaction fees make it ideal for both casual traders and high-frequency investors.
👉 Discover how to trade high-potential tokens on a fast, low-fee platform.
How Does Raydium DEX Work?
Unlike traditional exchanges, Raydium operates using an Automated Market Maker (AMM) model. This system relies on liquidity pools rather than order books to facilitate trades, enabling instant swaps with minimal slippage and ultra-low fees. What sets Raydium apart is its hybrid approach: it supplies on-chain liquidity to OpenBook’s central limit order book, allowing for deeper market depth and better price discovery across Solana-based DEXs.
Thanks to Solana’s high-speed blockchain—processing transactions in seconds with fees under $0.01—Raydium delivers a seamless trading experience. Whether you're swapping tokens or providing liquidity, the platform is optimized for performance and accessibility.
Key Features of Raydium
- Fast Transactions: Leverages Solana’s 400ms block times.
- Low Fees: Average transaction cost is less than $0.01.
- Hybrid Liquidity Model: Combines AMM pools with order book depth.
- Advanced Tools: Supports limit orders, yield farming, and staking.
This combination makes Raydium a versatile hub for DeFi activity on Solana.
What Can You Do on Raydium?
Raydium offers a comprehensive suite of tools for trading, earning, and exploring the Solana DeFi ecosystem.
1. Swap Tokens Instantly
Use Raydium’s swap function to exchange one cryptocurrency for another in seconds. The platform uses liquidity pools to ensure competitive rates and fast execution.
2. Provide Liquidity and Earn Fees
Add paired tokens (e.g., SOL/USDC) to a liquidity pool and earn a share of trading fees proportional to your contribution. High TVL across pools ensures consistent returns for liquidity providers.
3. Place Limit Orders
Set specific buy or sell prices for tokens using limit orders—a feature rare among AMMs but available thanks to Raydium’s integration with OpenBook.
4. Participate in Yield Farms
Stake your LP tokens in yield farms to earn additional rewards, often with attractive annual percentage yields (APY). These farms incentivize long-term participation and capital retention.
5. Access New Projects via AcceleRaytor
Raydium’s launchpad, AcceleRaytor, allows users to invest in early-stage projects before they hit major exchanges—ideal for discovering high-growth opportunities.
6. Stake RAY Tokens
Stake your $RAY tokens to earn passive income, participate in governance, and help secure the network. Staking also unlocks voting rights on protocol upgrades.
7. Trade Memecoins with Ease
Raydium has become a central hub for trading popular memecoins like $GOAT, $PNUT, and $CHILLGUY—especially those launched via Pump.fun.
👉 Start exploring trending memecoins with low fees and fast execution.
How to Connect Phantom Wallet to Raydium
To use Raydium, you’ll need a Solana-compatible wallet. Phantom is one of the most popular choices due to its user-friendly interface and strong security features.
Step-by-Step Guide
Install Phantom Wallet
- Visit phantom.app and install the browser extension for Chrome, Firefox, or Edge.
Create or Import Your Wallet
- Choose “Create New Wallet” if you’re new.
- Securely back up your 12-word recovery phrase.
- If migrating, select “Import Wallet” and enter your phrase.
Fund Your Wallet
- Transfer SOL tokens to your Phantom wallet to cover transaction fees.
- You can buy SOL on centralized exchanges like OKX and withdraw it to your wallet address.
Connect to Raydium
- Go to raydium.io.
- Click “Connect Wallet” in the top-right corner.
- Select “Phantom” from the list of options.
Approve Connection
- A popup will appear in your Phantom wallet—review and approve the connection.
Once connected, you can begin swapping tokens, adding liquidity, or staking directly through the Raydium interface.
How to Swap Cryptocurrencies on Raydium Using Phantom
Swapping tokens on Raydium is quick and intuitive.
Steps to Execute a Swap
Open the Swap Tab
- After connecting your wallet, click on “Swap” in the navigation menu.
Select Tokens
- Choose the token you want to sell (e.g., SOL).
- Select the token you want to buy (e.g., USDC or a memecoin).
Enter Amount
- Input the amount you wish to trade.
- Raydium will display an estimated output based on current market rates.
Review Transaction Details
- Check slippage tolerance (default is usually 0.5–1%).
- Review price impact—higher impact means larger trades may move the market.
Confirm Swap
- Click “Swap,” then approve the transaction in your Phantom wallet.
Your new tokens will appear in your wallet shortly after confirmation.
💡 Pro Tips:
- Keep extra SOL for gas fees.
- Increase slippage slightly (up to 5%) when trading volatile memecoins.
- Always verify token symbols and contract addresses before confirming.
How to Trade Pump.fun Memecoins on Raydium
Pump.fun has revolutionized memecoin creation on Solana, and Raydium serves as a primary marketplace for these newly launched tokens.
Step-by-Step Trading Guide
Connect Your Phantom Wallet
- Ensure it contains enough SOL for gas.
Go to the Swap Tab
- Navigate to Raydium’s “Swap” section.
Select Your Memecoin
- Search for tokens like $GOAT, $PNUT, or any new Pump.fun listing.
- Pair with SOL or USDC depending on availability.
Enter Trade Amount
- Raydium calculates the expected return instantly.
Adjust Slippage if Needed
- For highly volatile memecoins, set slippage between 3–5% to avoid failed transactions.
Approve and Confirm
- Finalize the trade in your wallet.
Monitor Holdings
- View your purchased memecoins under the “Tokens” tab in Phantom.
🔍 Trading Tips:
- Stay updated on social trends—memecoins are often driven by community momentum.
- Check pool liquidity before entering large positions.
- Use limit orders for better price control during volatile swings.
How to Stake RAY Tokens on Raydium
Staking $RAY is a great way to earn passive income while supporting the protocol.
Benefits of Staking RAY
- Earn staking rewards with competitive APY.
- Contribute to network security and decentralization.
- Gain access to governance proposals.
How to Stake
Connect Your Wallet
- Use Phantom or Solflare with $RAY and some SOL for fees.
Navigate to Staking
- On Raydium’s site, go to “Launch App” → “Staking” or “Pools.”
Select RAY Staking Pool
- Find the RAY staking option and click “Deposit.”
Enter Amount
- Choose how many RAY tokens to stake.
Approve Transaction
- Confirm in your wallet. Rewards begin accruing immediately.
You can compound returns by restaking earned rewards over time.
Can You Use MetaMask with Raydium?
MetaMask is designed primarily for Ethereum and EVM-compatible chains—not natively for Solana. Therefore, you cannot directly connect MetaMask to Raydium.
However, there's a workaround: MetaMask Snaps. This experimental feature allows MetaMask to interact with non-EVM blockchains like Solana.
Using MetaMask Snap
- Install the MetaMask Snap extension from a trusted source.
- Enable Solana support within the Snap settings.
- Connect to Raydium via the Snap-enabled interface.
While promising, this method is still evolving and may not offer full functionality.
Better Alternatives
For optimal performance, use native Solana wallets like:
- Phantom
- Solflare
These are purpose-built for Solana dApps and provide seamless integration with Raydium for trading, staking, and yield farming.
Additionally, tools like Wormhole allow cross-chain transfers—enabling you to bridge assets like ETH or USDC from Ethereum to Solana for use on Raydium.
Frequently Asked Questions (FAQ)
Q: Is Raydium safe to use?
A: Raydium uses audited smart contracts and benefits from Solana’s secure infrastructure. However, always exercise caution—review contract addresses, avoid suspicious tokens, and never share your private keys.
Q: What are the fees on Raydium?
A: Transaction fees on Solana are typically under $0.01. Raydium also charges a small swap fee (usually 0.25%), part of which goes to liquidity providers.
Q: Do I need SOL to trade on Raydium?
A: Yes—SOL is required to pay network gas fees for all transactions, even when trading other tokens.
Q: Can I lose money providing liquidity?
A: Yes—impermanent loss can occur if token prices diverge significantly after you deposit into a pool. It’s important to understand this risk before becoming a liquidity provider.
Q: How do I claim staking rewards?
A: Rewards accrue automatically and can be claimed or reinvested directly through the staking dashboard on Raydium.
Q: Are memecoins safe to trade on Raydium?
A: While Raydium itself is secure, memecoins carry high volatility and speculative risk. Only invest what you can afford to lose and conduct thorough research before buying any new token.
Final Thoughts
Raydium stands out as a powerful gateway into Solana’s DeFi ecosystem, combining speed, low costs, and advanced features like limit orders and yield farming. Whether you're swapping tokens, trading memecoins from Pump.fun, or staking $RAY for passive income, the platform offers a smooth and efficient experience—especially when using native wallets like Phantom.
As always in DeFi, proceed with caution: prices can be volatile, smart contracts carry inherent risks, and scams do exist. Conduct due diligence, start small, and prioritize security by safeguarding your recovery phrase and enabling two-factor authentication where possible.
With its growing TVL and expanding suite of tools, Raydium remains a top choice for both beginners and experienced users navigating the dynamic world of decentralized finance on Solana in 2025.
👉 Get started today with a secure platform built for speed and scalability.