Raydium’s LaunchLab With 3.7K New Tokens Since Launch, But PumpFun Still Dominates Solana

Since the debut of Raydium’s LaunchLab on April 16, the liquidity pool has already facilitated the creation of 3,814 new tokens.

Yet, despite this flurry of activity, only 44 of those tokens have successfully “graduated” to external trading on the Raydium AMM, representing a graduation rate of just 1.12%.

While this marks an important milestone for Raydium, Pump.fun remains the dominant force in daily token generation on Solana, commanding more than 60% of all new token launches.

Just a month ago, Raydium and Pump.fun were working hand-in-hand, with the latter using Raydium as the go-to AMM for tokens that graduated from its meme coin launchpad.

But that relationship came to a dramatic end in March when Pump.fun launched its decentralized exchange, PumpSwap, and began migrating liquidity internally.

Raydium, seemingly blindsided by the move, responded by launching LaunchLab.

Raydium LaunchLab’s Promise and Reality

LaunchLab was built to make token launches as easy and customizable as possible for creators while integrating them directly into Raydium’s AMM ecosystem.

The platform supports two primary launch modes. In “JustSendIt” mode, users can initiate a no-code token launch where a bonding curve needs to raise 85 SOL before the token is automatically migrated to a Raydium pool.

Liquidity provider (LP) tokens are burned to secure the pool, ensuring trading continues uninterrupted.

The standard LaunchLab mode, on the other hand, offers full customization for developers, allowing them to set everything from bonding curve parameters to vesting schemes.

Raydium’s design also offers key creator incentives, with 10% of trading fees going to the launch creator and 50% of all trading fees returning to a community pool.

The platform charges a 1% trading fee, split across buybacks for $RAY, operations, and the aforementioned community incentives.

In addition, Raydium’s referral system distributes 10 basis points of swap volume directly to wallets that bring in new users, paid in SOL via airdrops.

Despite all these features, the real-world data suggests a rocky start. Out of over 3,800 tokens created, only 44 have made it through the bonding curve to an AMM pool. The 1.15% graduation rate might be a good start.

PumpSwap Remains the Titan of Token Creation

Pump.fun’s decision to cut ties with Raydium and launch PumpSwap in March changed the Solana meme coin’s economy.

Previously, every successful token on Pump.fun had to migrate to Raydium for trading, incurring migration fees and adding friction.

With PumpSwap, the migration is instant and free, removing what was previously a 6 SOL fee.

This smoother experience has helped PumpSwap become a massive success practically overnight.

Since its launch on March 20, PumpSwap has processed over $2.5 billion in trades in a single week and saw a high of $417.8 million in daily volume on April 14, accompanied by over 264,000 active wallets.

The platform’s competitive 0.25% trading fee, of which 0.20% goes to liquidity providers and 0.05% to the protocol, offers a creator revenue-sharing model that is expected to launch soon.

Yet, in the bigger picture, this arms race could be bullish for the entire Solana ecosystem.

As both platforms race to dominate the token creation space, SOL has benefited from rising transaction volume.

In the wake of LaunchLab’s debut, SOL jumped nearly 6% in 24 hours, breaking out of a descending triangle and invalidating bearish patterns.

Trading volume rose 38% during that time, and SOL has seen weekly gains of over 17% thanks in part to viral meme coins like Fartcoin (FART).

While Pump.fun may still dominate for now, the emergence of LaunchLab shows Raydium is far from conceding the fight, and Solana might benefit even more from this heat-up.

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