2025-04-17
On April 16, 2025, Solana’s largest
decentralized exchange by cumulative volume, Raydium (RAY), has launched LaunchLab,
a new token launchpad designed to challenge the dominance of memecoin creation
platform Pump.fun.
The initiative comes as competition
between the two platforms intensifies following the debut of Pump.fun’s own
DEX, PumpSwap, last month.
LaunchLab allows users to create and
launch tokens directly, with seamless integration into Raydium’s liquidity
pools.
It also supports third-party
transaction fee settings, giving developers more flexibility and control. One
notable feature: 25% of transaction fees on LaunchLab will be used to buy back
RAY, Raydium’s native token—a move that appears to have buoyed investor
sentiment.
Since the announcement, RAY has surged
28% over the past seven days, significantly outperforming the broader crypto
market.
The launch follows a shift in the
previously cooperative relationship between Pump.fun and Raydium.
Pump.fun had long relied on Raydium’s AMM for
secondary market liquidity. Tokens launched on Pump.fun were automatically
listed on Raydium once they crossed a $69,000 market cap. But PumpSwap’s launch
on March 20 disrupted that flow, letting Pump.fun keep trading in-house and
cutting into Raydium’s revenue stream.
PumpSwap quickly gained traction,
posting $2.5 billion in trading volume in its first 10 days and now boasting
over $31.7 billion in total volume, according to DefiLlama.
Raydium’s LaunchLab appears to be a
direct response, aiming to recapture momentum and trading volume. Meanwhile,
Pump.fun is reportedly working on launching its own native token, setting the
stage for continued rivalry in the Solana ecosystem.
RAY currently has a market cap of $638 million. It is the world's 83th most valuable crypto by market cap.
