AWS Lambda function needs more than max memory reported in CloudWatch

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I have a Lambda function that reads messages off an SQS queue and inserts items into Dynamo. At first, I had it at 512MB of memory. In cloud watch, it reported the max memory used was around 58MB. I assumed I could then lower the memory to 128MB and see the same rate of processing SQS messages. However, that wasn't the case. Things noticeably slowed. Can anyone explain?

Here is cloud watch showing max memory with 512MB Lambda: enter image description here

Here is cloud watch showing max memory with 128MB Lambda: enter image description here

Here you can see the capacity of the Dynamo table really dropped enter image description here

Here you can see the number of messages being processes really slowed, as evidence by the lower slope enter image description here

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