TLDR
- Raydium launched LaunchLab on April 16, a new memecoin-making protocol designed to compete with Pump.fun
- LaunchLab offers customizable bonding curves, no migration fees, and automatic transition to Raydium’s AMM for tokens raising 85 SOL
- Pump.fun previously relied on Raydium but severed ties in March by launching its own DEX called PumpSwap
- Following the LaunchLab announcement, RAY token price surged between 8-14%, reaching a high of $2.50
- 25% of LaunchLab’s 1% trading fees will be used for RAY token buybacks
Raydium, the largest decentralized exchange (DEX) on Solana by cumulative volume, has launched a new token launchpad called LaunchLab. The platform, unveiled on April 16, aims to compete directly with Pump.fun in the growing Solana memecoin market.
The introduction of LaunchLab comes almost a month after Pump.fun, which previously contributed significantly to Raydium’s revenue, ended its partnership with the firm. Pump.fun had moved token migration from Raydium’s liquidity pools to its own new decentralized exchange, PumpSwap.
LaunchLab will use Raydium’s existing liquidity pools and hopes to replace Pump.fun as the top Solana memecoin launchpad. According to Raydium, the new platform offers memecoin creators customizable bonding curves without migration fees.
For Creators: Custom Token Launch Features
– Token supply, total raised, quantity sold on curve
– Vesting with optional cliff and wallet delegation
– Burn & Earn: lock the LP & earn trading fees (!)
– And so much more pic.twitter.com/7LvQ70lw4O— Raydium (@RaydiumProtocol) April 16, 2025
How LaunchLab Works
Tokens on LaunchLab that raise 85 SOL (approximately $11,150 at current prices) will automatically transition to Raydium’s automated market maker (AMM). About 10 LaunchLab tokens have already reached this threshold, according to the platform.
The platform allows tokens to be launched at no cost. Creators can choose to earn 10% of trading fees from the AMM pool after their tokens graduate to the main exchange.
LaunchLab sets trading fees at 1%, with 25% of these fees allocated to RAY token buybacks. This fee structure appears designed to benefit existing RAY token holders through increased buying pressure.
The Solana team endorsed the launch, describing it as an important development for Solana’s DeFi ecosystem.
Market Response to LaunchLab
The announcement triggered a positive price reaction for the RAY token. Following the news, RAY’s price increased between 8-14%, briefly reaching a high of $2.50 before settling back to around $2.21, according to data from CoinGecko.
RAY Price
This price movement comes amid an already developing short-term rally for the token. Technical analysis suggests RAY may be in a corrective wave after completing a long-term five-wave upward movement between December 2022 and January 2025.
While the long-term trend appears bearish with weekly indicators showing a downward direction, the token has found support around the $1.70 level after reaching a low of $1.39 in April.
Some analysts predict the current upward movement could target between $3 and $4.25 before resuming its larger downtrend.
Escalating Competition with Pump.fun
The launch marks the latest development in the growing rivalry between Raydium and Pump.fun. Previously, the two platforms had a mutually beneficial relationship, with Pump.fun relying on Raydium for secondary market trading.
Before the creation of PumpSwap, tokens created on Pump.fun would automatically migrate to Raydium after crossing $69,000 in market capitalization. This arrangement changed when PumpSwap launched on March 20, creating direct competition with Raydium’s automated market maker.
PumpSwap has shown impressive growth in its short existence. Within its first 10 days, it accumulated $2.5 billion in trading volume. Less than a month after launch, PumpSwap has recorded over $31.7 billion in all-time volume, according to DefiLlama data.
The platform’s daily trading volume has been particularly strong, breaking records for five consecutive days. On April 17, PumpSwap reported $460 million in daily volume, slightly higher than the $454.9 million seen on April 16.
Reports indicate that LaunchLab had been in development for months before its release. The timing of the announcement, coming shortly after Pump.fun’s expansion, suggests Raydium is actively working to recapture market share lost to its former partner.
Both platforms are now positioning themselves for future token launches. While Raydium has integrated RAY token buybacks into LaunchLab’s fee structure, Pump.fun is also planning to launch its own native token after establishing its AMM.
The competition between these platforms highlights the growing importance of the memecoin sector within the Solana ecosystem. With both platforms now offering comprehensive solutions for token creation and trading, creators and traders have more options for participating in this market.
