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You could definitely try negotiating a raise internally. However, I would probably start looking for something else as well. It is always good to have a back up plan.
If you go the negotiation route, what would you say as reason to why you're owed a raise?
Go outside first, see if you are actually as valuable as you think you are, if no one will pay you more, then you don’t deserve a raise, and don’t make a fool of yourself internally.
Nothing wrong with negotiating, but you need to be armed with the facts. What value are you bringing to justify a raise? Working hard and getting your job done more efficiently doesn’t cut it. You need something quantifiable that presents a strong business case for this to happen. Are you improving processes that leads to meaningful cost savings? Contributing to growth in a new market? Remember, your managers probably need to escalate this so you’re giving them the information to support your raise to their bosses.
Also, interviewing will give you an idea of what you’re actually worth. Maybe you’re already at market value, but you won’t know until you start looking.
Mentor
I normally have found it harder to negotiate internally than switch externally. But there’s no reason you couldn’t do both!