Raydium Takes on Pump.fun with New Rival Memecoin Platform

Raydium to Launch Rival AMM Platform After Pump.fun Leaks Code

Raydium (RAY), a leading decentralized exchange within the Solana ecosystem, is preparing to launch a new rival memecoin platform aimed at competing with Pump.fun, a platform that gained significant attention in 2024. This move comes just one month after Pump.fun was found testing its own automated market maker (AMM), potentially designed to replace RAY as the primary platform for token creation.

Raydium’s Revenue and Importance in the Ecosystem

RAY, which generates over 35% of its revenue from Pump.fun, remains a highly profitable decentralized exchange. In 2024, it achieved a substantial $154 million from swap revenue, with expectations for daily revenue to reach approximately $1 million across all its liquidity pools. These figures underscore Raydium’s dominance and influence within the decentralized finance (DeFi) space.

Pump.fun’s Role and Raydium’s New Rival LaunchPad

Pump.fun, which has become increasingly popular since its early 2024 launch, uses RAY to facilitate secondary market trading for tokens with a market capitalization reaching $69,000. Once a token’s bonding curve is “filled,” it transitions from Pump.fun to another platform. However, following the leak of Pump.fun’s AMM code, Raydium has announced plans to spin out its own version of the platform, dubbed LaunchLab, to compete directly with Pump.fun.

Raydium’s Strategic Response and New Features

According to InfraRAY, a core contributor to RAY, swapping out the platform for Pump.fun would be a “strategic miscalculation.” RAY’s LaunchLab will incorporate many of Pump.fun’s features, including a logarithmic bonding curve, but with some key differences, such as enabling third-party UIs to set fees and gain direct access to Raydium’s liquidity pools. The new platform is expected to launch soon, with the development reportedly having been underway for several months.

RAY Token Movement and Market Outlook

In response to these developments, RAY token has risen by 5%, currently trading around $1.67. The creation of a rival memecoin platform may further bolster Raydium’s position in the Solana ecosystem, especially as competition in the decentralized token launch space intensifies.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.