Raydium Launches Meme Coin Platform LaunchLab to Compete with Pump.fun

The RAY token has jumped 28% following Raydium's announcement of LaunchLab

The RAY token surged by 28% following Raydium’s unveiling of LaunchLab, a new meme coin platform designed to compete with Pump.fun.

This move comes as Raydium seeks to maintain its position in the Solana (CRYPTO: SOL) ecosystem following reports that Pump.fun might be reducing its reliance on Raydium’s services.

Both platforms are integral to the launch and management of meme coins on Solana, a domain where interest has been waning in recent months.

What Happened: Raydium, a decentralized exchange on Solana, is introducing LaunchLab, a platform for meme coin projects to launch directly on-chain with minimal friction.

LaunchLab will function similarly to Pump.fun but with added features. It will offer three types of bonding curves that match demand and price for tokens. These curves are automatic systems that adjust prices as tokens are bought or sold on decentralized exchanges.

One key difference is that LaunchLab will allow third-party user interfaces to set their own fees. This could make the platform more appealing to developers and users alike. The platform will also support multiple quote tokens.

LaunchLab will link with Raydium’s liquidity provider locker. This connection aims to enhance security for perpetual swap fees on the platform.

Raydium developer @0xINFRA highlighted that LaunchLab is not meant to compete with launchpads currently using Raydium.

"We’re not here to compete with launchpads currently using Raydium — LaunchLab makes on-chain token launches easier for teams, offering a neutral, permissionless infra," the developer said on X. This suggests Raydium is focusing on enhancing the ecosystem rather than creating division.

7/ We’re not here to compete with launchpads currently using Raydium — LaunchLab makes on-chain token launches easier for teams, offering a neutral, permissionless infra.

Our goal: empower Solana’s ecosystem, not gatekeep it

— Infra | Raydium (@0xINFRA) March 19, 2025

The timing of LaunchLab’s development is noteworthy. It emerged less than a month after Pump.fun reportedly tested its own Automated Market Maker (AMM). This move signaled Pump.fun’s possible intention to become less dependent on Raydium.

Such a shift could have major consequences for Raydium. The platform has earned a significant portion of its revenue from Pump.fun’s token pools. Over 30% of Raydium’s daily trading volume stemmed from Pump.fun tokens as of February, according to data from Dune Analytics.

Rumors about Pump.fun’s AMM feature triggered a 30% drop in the RAY token’s value. This decline worsened as the broader crypto market experienced a correction due to tariff tensions and a weakening macroeconomic environment. Over the past month, RAY has fallen by around 60%.

Meme Sector Down:

The meme coin sector as a whole has faced challenges. According to CoinMarketCap data, the meme coin market cap has decreased by approximately 65% from its peak in December 2024. Despite brief optimism before Trump’s inauguration, most meme tokens experienced losses after the event.

Pump.fun’s graduation rate has remained below 1% since February 17. This rate refers to the percentage of tokens that successfully move from incubation to full trading status on a Solana decentralized exchange. The highest rate ever recorded was 1.67% in November 2024.

These low rates indicate declining interest from investors in meme coins, which are generally viewed as high-risk investments with limited practical use. Despite some improvements in liquidity, the overall crypto market remains under pressure.

$1 Million In Daily Trading Fees

Raydium currently generates over $1 million in fees daily from trading across all its liquidity pools. This steady revenue stream provides stability to the platform despite market fluctuations. However, LaunchLab may initially struggle with adoption.

Ceteris, Head of Research at Delphi Digital, highlighted a fundamental issue Raydium might encounter. While Raydium provides the underlying infrastructure, platforms like Pump.fun control the user interface and experience. “Pump.fun owns the user, Raydium is just back-end infra,” Ceteris stated.

Jongwon Park from Story Protocol added, “crypto UX gets better when you abstract away 10s of AMMs. Products are king, and liquidity in AMM follows products.” This suggests that user experience might be more important than technical capabilities.

@0xINFRA has denied that LaunchLab is simply a copy of Pump.fun. “Not a Pump fork, LaunchLab’s PoC UI mimics it for familiarity, but it’s far more versatile,” the developer clarified. “It’s the first of a tool suite—more models in progress to tackle diverse liquidity needs.”