Raydium Price Soars as Solana’s DEX Strikes Back at Pump.fun

Raydium (RAY), the largest automated market maker (AMM) decentralized exchange (DEX) on Solana, is intensifying its rivalry with Pump.fun by launching LaunchLab, a new meme coin launchpad designed to enhance Solana’s token ecosystem.

The announcement sent Raydium’s utility and governance token, RAY, soaring nearly 28% on Tuesday, rebounding sharply after an 80% decline since late January.

RAY Token Rebounds Amid LaunchLab Announcement

RAY’s price climbed from $1.60 to $2.06 following news of LaunchLab, signaling renewed investor confidence in Raydium’s future. 

The token had faced significant selling pressure over fears that Raydium’s revenue could suffer as Pump.fun prepared to shift liquidity to its own automated market maker (AMM).

Raydium (RAY) price rebounds following the LaunchLab announcement. Source: CoinMarketCap

Raydium’s LaunchLab: More Than a Pump.fun Clone

Raydium positions LaunchLab not as a competitor to Pump.fun but as a more versatile and decentralized alternative. 

Infra, an anonymous core contributor at Raydium, emphasized the platform’s goal in his X post.

“We’re not here to compete with launchpads currently using Raydium — LaunchLab makes on-chain token launches easier for teams, offering a neutral, permissionless infrastructure. Our goal: empower Solana’s ecosystem, not gatekeep it.” 

Unlike Pump.fun, which primarily supports SOL, LaunchLab will accept multiple quote tokens, including jitoSOL and stablecoins.

The platform also introduces a variety of bonding curves—linear, exponential, and logarithmic—giving projects more flexibility in their tokenomics. 

Additionally, LaunchLab integrates with Raydium’s LP lockers, securing swap fees permanently through Fee Key NFTs.

“Raydium’s vision: a top spot for Solana launches via neutral, on-chain infrastructure. No CEX reliance—LaunchLab’s bonding curve program is just the start,” Infra added.

A Strategic Response to Revenue Risks

Pump.fun’s rise in 2024 positioned it as a dominant player in Solana’s ecosystem by allowing users to create and launch meme coins quickly.

Many tokens later migrated to Raydium for liquidity, becoming a significant revenue source. According to Blockworks Research, Pump.fun-generated tokens made up 41% of Raydium’s swap fee revenue last month alone.

With Pump.fun developing its own automated market maker (AMM), Raydium risks losing a major portion of its trading volume and transaction fees. 

The platform currently accounts for over 10% of global DEX trading volume, making it the third-largest DEX by volume, behind PancakeSwap and Uniswap.

Experts Weigh In: Raydium’s Broader Impact

However, industry experts suggest Raydium’s counterstrategy could redefine competition in the crypto space.

Richard Galvin, Co-Founder and CEO of a digital asset fund and a former banker, stressed the importance of sustainable business models in crypto.

“If Raydium succeeds, it’s clearly great for RAY but also good for crypto. Crypto needs less extractive models,” Galvin stated.

He contrasts Raydium’s approach—reinvesting revenue through liquidity provider fees and token buybacks—with Pump.fun’s model, where profits often exit the system through cash withdrawals.

“The vast majority of Raydium’s success feeds directly back into the crypto ecosystem via LP fees and RAY buybacks. Meanwhile, Pump.fun’s ‘success’ gets sent to Kraken and dumped on the market for cash,” Galvin said.

Why This Matters

The battle for dominance in Solana’s meme coin market is intensifying. Raydium’s LaunchLab could secure liquidity within its ecosystem, but if Pump.fun’s AMM siphons it away, it may redefine Solana’s decentralized finance (DeFi) landscape.

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