- Raydium’s LaunchLab has seen over 3,700 tokens created but only 1.12% graduate to trading.
- Pump.fun leads with over 60% of Solana’s token generation, supported by PumpSwap’s low fees.
- SOL’s value rose nearly 6% in 24 hours, benefiting from increased trading volume and competition.
Since launching on April 16, Raydium’s LaunchLab has experienced a surge in token creation, with over 4,163 tokens being generated. However, despite the high number of tokens, only 46 have successfully made it to external trading on Raydium’s automated market maker (AMM), representing just 1.10% of all created tokens. This data suggests that while LaunchLab is facilitating token creation, the success rate remains relatively low.
A Competitive Landscape for Token Creation
Raydium’s LaunchLab was introduced as a platform designed to make token launches easier and more customizable. With two main launch modes, creators can either initiate a no-code launch or customize token parameters.
The platform’s fee structure includes a 1% trading fee, with a portion allocated to buybacks and community incentives. Despite these features, only a small percentage of the tokens created have passed through the bonding curve to the AMM, showing that the journey from creation to trading remains challenging.
Pump. Fun’s Continued Dominance
Meanwhile, Pump.fun has maintained its position as the leader in token generation on Solana. Over 60% of all new tokens are launched via Pump.fun, a platform that moved away from Raydium in March.
The launch of PumpSwap, a decentralized exchange, allowed Pump.fun to migrate liquidity internally, bypassing the need for Raydium’s AMM. This shift has led to significant success for PumpSwap, with over $2.5 billion in trades processed within a week of its launch and a peak daily volume of $417.8 million in mid-April.
PumpSwap’s low trading fee of 0.25% and liquidity migration have contributed to its quick development. By removing migration fees, which were previously set at 6 SOL on Raydium, PumpSwap offers a smoother understanding for token creators and traders. This activity has allowed PumpSwap to attract over 264,000 active wallets, solidifying its position as the leading platform for Solana-based token launches.
The Ripple Effect on Solana’s Ecosystem
Despite Raydium’s LaunchLab lagging behind Pump.fun in terms of token generation, the introduction of both platforms has had a noticeable impact on Solana’s ecosystem. The increased token creation and trading volume on both Pump.fun and Raydium’s LaunchLab have contributed to Solana’s growth.
As these two platforms continue to compete for dominance in the token creation space, the Solana network could see further benefits from rising transaction volumes. Although Pump.fun currently oversees the token creation race on SOL, Raydium’s LaunchLab is a significant player.
The rivalry between these two platforms is anticipated to move further activity within the Solana ecosystem, benefiting SOL in the process. While Raydium faces challenges, its LaunchLab remains a vital tool for token creators, offering features that may help enhance the graduation rate over time.
