- Raydium launches the “LaunchLab” token launchpad to compete with Pump.fun’s AMM.
- Pump.fun contributes over 35% of Raydium’s revenue, making it a crucial part of Raydium’s business model.
- Raydium’s RAY token surged by 29% following the announcement of the LaunchLab, signaling strong investor confidence.
Raydium, a decentralized exchange (DEX) and automated market maker (AMM) on the Solana network, is launching a new token launchpad named “LaunchLab.” This move follows Pump.fun’s efforts to develop its own AMM, which could eventually replace Raydium.
According to reports from Blockworks, Raydium’s “LaunchLab” will initially mirror Pump.fun, with a few distinct differences. The platform will feature a logarithmic bonding curve similar to Pump. fun’s but will also allow third-party user interfaces (UIs) to set fees and gain direct access to Raydium’s liquidity pools. Development on this project has been ongoing for several months.
Raydium’s Revenue and Pump.fun’s Role in Its Success
Pump.fun represents the largest revenue source for Raydium with a contribution of more than 35% of its swap fee income since its introduction in early 2024. Users of Pump.fun can generate tokens through their platform that reach a market capitalization of $69,000. A token will trigger the addition of liquidity to Raydium trading pools when it reaches its predetermined threshold at which point it gets destroyed.
This process has become an essential part of Raydium’s business model, with Pump.fun memecoins contributing 41% of Raydium’s swap fee revenue in the past month, according to Blockworks Research. Despite concerns that Pump.fun may shift tokens to its own AMM, Raydium still holds $168 million in its balance sheet, giving the platform the flexibility to pivot quickly and even consider a Pump.fun fork.
Raydium’s Token Surge and the Launchpad’s Potential
Following the announcement of the upcoming LaunchLab, Raydium’s native utility and governance token, RAY, surged by 29%,reaching $2.
Source: Coinmarketcap
The new token launchpad aims to challenge Pump.fun by providing a platform for meme token launches. This could shift the current market dynamics, as Raydium has already proven to be a highly profitable platform, generating around $154 million from swap revenue in 2024. The introduction of the LaunchLab could accelerate this figure, potentially reaching $1 million in daily swap revenue across all its liquidity pools.
The swift reaction from Raydium to the Pump.fun phenomenon demonstrates how well the platform can both adapt and innovate. Raydium’s investors first anticipated revenue decline after Pump.fun announced its new AMM but eventually boosted RAY token value from their faith in Raydium’s upcoming business strategies. The LaunchLab functions as a critical development which will bring meaningful prospects for both users and investors.
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