Raydium Develops LaunchLab: A Strategic Move In The Memecoin Race On Solana

Background: The Rift With Pump.fun

The LaunchLab announcement comes shortly after the popular memecoin issuance platform pump.fun revealed plans to build its own DEX, with the intention of no longer relying on Raydium to provide liquidity for memecoins that “graduate” from its platform. Raydium and pump.fun were previously seen as the ideal “symbiotic” duo: pump.fun minted millions of memecoins, while Raydium acted as the main liquidity generator, generating huge revenue from trading fees. Statistics from Blockworks show that, at its peak (December 2024 – January 2025), memecoins from pump.fun accounted for 41% of total swap fee revenue on DEXs, with Raydium benefiting greatly, reaching $154 million in revenue in 2024.

However, pump.fun ’s move to build an independent AMM has put Raydium at risk of losing an important source of revenue. The RAY token price plunged 20% in February 2025 when the news broke, reflecting investor concerns about Raydium’s future in the memecoin ecosystem. The launch of LaunchLab is therefore not just a defensive response but a proactive move to regain control in a rapidly changing market.

LaunchLab: New Competitor To Pump.fun ?

Based on information from Blockworks, LaunchLab is designed with many similarities to pump.fun , including a bonding curve mechanism to stimulate supply and demand and the ability for users to easily create memecoins. However, Raydium emphasizes that the platform is not intended to compete directly with pump.fun , but is aimed at users who want to create memecoins simply and take advantage of Raydium's AMM v4 pool solution - a technology that is highly regarded for its liquidity performance.

The biggest difference may lie in the long-term strategy. While pump.fun has been criticized for encouraging “pump and dump” and lacking quality control over memecoins, Raydium can leverage its experience in the DeFi space to build LaunchLab into a more sustainable platform with strong governance and screening mechanisms. This not only reduces risk for investors but also solidifies Raydium’s position as a trusted “big guy” on Solana.

Immediately after the LaunchLab news was announced, the RAY token price skyrocketed 20% within 7 days, from its recent low to around $2 on the morning of March 19, 2025 (according to CoinGecko). This shows the community's confidence in the potential of the new project, and also reflects the expectation that Raydium can regain its growth momentum after the turmoil caused by the "breakup" with pump.fun . However, this recovery comes in the context of the overall memecoin market cooling down, with both Raydium and pump.fun 's trading volume and revenue dropping significantly in February and March 2025.

Challenges and Opportunities

Despite LaunchLab’s promise, Raydium faces a number of challenges. First, the memecoin craze appears to have passed its peak, with investors growing wary of repeated crashes and rug pulls. Second, building a new platform requires Raydium to compete not only with pump.fun but also with other Ethereum-based competitors like Moonshot (developed by DEX Screener) and Ethervista. Can LaunchLab differentiate itself enough to attract users?

On the contrary, the opportunity for Raydium is not small. With its position as the leading DEX in Solana and experience in operating an effective AMM, Raydium can take advantage of the existing infrastructure to deploy LaunchLab quickly and optimally. If successful, this platform will not only help Raydium reduce its dependence on pump.fun but also open up a new source of revenue, consolidating its leading position in the Solana ecosystem, which is increasingly asserting its strength against Ethereum.

Raydium’s development of LaunchLab is a strategic move that reflects the team’s agility in adapting to market trends. While questions remain about the project’s ability to succeed in a context where memecoins are losing traction, the move shows that Raydium is not willing to stand still in the face of change. For the investment community, this is a time to keep a close eye on LaunchLab and assess whether Raydium can reshape the memecoin game on Solana. In a volatile market like cryptocurrency, innovation is key – and Raydium is betting big on it.