Raydium's LaunchLab Sees 3,814 Tokens Created on Solana in First Week with 1.15% Graduation Rate

Raydium's newly launched token creation platform, LaunchLab, has generated 3,814 tokens since its debut on April 16, according to data from Dune Analytics. Among these, 44 tokens have "graduated" to external trading, indicating a success rate of 1.15%. Despite the emergence of LaunchLab, Pump Fun continues to dominate blockchain space, accounting for over 60% of daily token creations.

LaunchLab was introduced following Pumpfun's launch of its decentralized exchange, PumpSwap, aiming to directly compete with Pumpfun. However, LaunchLab is not merely a replica of Pumpfun; it offers unique features such as the JustSendIt function to simplify token creation, flexible bonding curves, no migration fees, and additional incentives for creators.

Launched on April 16, LaunchLab allows creators to deploy tokens on Solana with customizable bonding curves, integrating seamlessly with Raydium's automated market maker (AMM) without migration fees. Tokens that raise 85 SOL automatically transfer liquidity to Raydium's AMM. In its first five days, the platform produced 3,814 tokens, reflecting Solana users' interest in rapid asset issuance. However, only 44 tokens have entered external markets, suggesting that while many are keen to explore the new platform, a broader user base remains unfamiliar with LaunchLab, resulting in many tokens stalling before reaching wider liquidity.

Despite Raydium's direct competition with Pumpfun, data indicates Pumpfun's continued dominance. Dune Analytics reports that Pumpfun created 28,426 tokens in the past 24 hours alone, with 254 tokens graduating. Pumpfun still contributes to over 60% of daily token creations on Solana. This highlights Pump.fun's user-friendly platform and established community, providing it with strong inertia.

Notably, Raydium's graduation rate of 1.15% is significantly higher than Pumpfun's. This may be attributed to LaunchLab's bonding curve and creator incentives, such as AMM trading fee shares, which encourage creators to focus on token quality and invest effort in helping tokens graduate. Additionally, LaunchLab attracts users with some experience in token launching, suggesting that its user base might lead to a slightly higher graduation rate and subsequent token development quality compared to Pumpfun.

However, challenges remain for LaunchLab. Competition in the platform space may lead to liquidity fragmentation, making it harder for LaunchLab to create wealth effects. Without sustained trading volume or significant wealth creation, LaunchLab's challenge to Pump.fun might be limited in the short term.