Raydium Prepares to Compete with Pump.fun in Solana Memecoin Market

Raydium, the decentralized exchange at the core of the Solana ecosystem, is reportedly developing a memecoin launchpad to rival Pump.fun. This strategic move comes in response to Pump.fun’s growing dominance and its recent efforts to build a custom automated market maker (AMM), potentially sidelining Raydium in the process.

Raydium’s Response to Pump.fun’s Expansion

Pump.fun, a leading Solana-based platform for launching memecoins, has been a significant revenue driver for Raydium, contributing over 35% of its total revenue. The platform automatically shifts tokens that reach a market capitalization of $69,000 from its bonding curve to Raydium for secondary trading.

However, tensions rose after Pump.fun was found testing a proprietary AMM that could reduce its reliance on Raydium. In response, Raydium has been quietly working on its own alternative, reportedly named “LaunchLab,” which will function similarly to Pump.fun but with enhanced features.

What to Expect from Raydium’s ‘LaunchLab’

According to sources cited by Blockworks, Raydium’s LaunchLab will integrate a logarithmic bonding curve similar to Pump.fun’s while introducing key differentiators:

• Third-Party UI Integration – Developers and external platforms will be able to interact with LaunchLab and set their own fees.
• Direct Liquidity Access – LaunchLab will have seamless connectivity with Raydium’s existing liquidity pools, providing traders with deeper and more efficient markets.

This development aligns with Raydium’s broader growth strategy. The exchange has been a top performer in the decentralized finance (DeFi) space, generating approximately $154 million in swap revenue in 2024. As of 2025, Raydium’s liquidity pools are estimated to be generating $1 million per day.

Memecoin Market Competition Heats Up

Pump.fun has been expanding aggressively, including plans to launch its own native token. Raydium’s RAY token, meanwhile, has responded positively to the news, surging over 5% to approximately $1.67.

The competition between these platforms could drive greater innovation and liquidity in the Solana ecosystem. With LaunchLab poised for release, Raydium aims to protect its revenue streams while offering traders and developers an alternative to Pump.fun’s growing influence.

Conclusion

Raydium’s move into the memecoin launchpad space marks a significant development in Solana’s DeFi landscape. As both platforms refine their offerings, the battle for market dominance is expected to intensify. Traders and investors will be watching closely to see how this competition shapes the future of memecoins on Solana.