Raydium Launches New Token Launchpad Called LaunchLab to Compete with Pump.fun

Raydium, the largest decentralized exchange (DEX) on Solana by cumulative volume, has launched a new token launchpad called LaunchLab.

The largest decentralized exchange (DEX) on Solana by cumulative volume, Raydium (CRYPTO: RAY), has launched a new token launchpad named LaunchLab.

The platform, unveiled on Monday, aims to compete directly with (CRYPTO: FUN) in the fast-growing Solana memecoin market.

LaunchLab is being introduced 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.

However, 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. It also enables creators to adjust the token supply, total amount raised, quantity sold on the curve, and set up vesting with an optional cliff and wallet delegation.

Additionally, LaunchLab offers a "Burn & Earn" program where creators can choose to lock the liquidity provider (LP) token and earn a percentage of the trading fees.

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 liquidity trading fees 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 appears designed to benefit existing RAY token holders through increased buying pressure.

The Solana (CRYPTO: ATOM) team also 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%. It briefly reached a high of $2.50 before settling back to around $2.21, according to CoinGecko.

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.

LaunchLab Is Latest Chapter Involving 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.

However, this arrangement changed when Pump.fun launched its own decentralized exchange, named PumpSwap, on March 20. This move effectively created a direct competitor to Raydium’s automated market maker.

Despite its recent launch, PumpSwap has shown rapid growth. 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, Pump.fun 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 several months. 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 competitive dynamic between these platforms underscores the burgeoning importance of the memecoin sector within the Solana ecosystem.

With both LaunchLab and Pump.fun offering creators comprehensive solutions for token creation and trading, they provide traders with more options for engaging with this market.