Why is Raydium said to be the biggest beneficiary of Letsbonk.fun's rise?

Original | Odaily Daily Report (@OdailyChina)

Author ｜ Azuma（@azuma_eth）

Letsbonk.fun has recently completed a comeback against the track "Big Brother" Pump.fun on the data level.

On-chain analyst Adam's data dashboard created on Dune shows that recently Letsbonk.fun (the orange part in the figure below) has surpassed Pump.fun (the green part in the figure below) in both daily deployed tokens and daily graduated tokens, becoming the most popular Meme token launch platform in the current market.

With the strong rise of Letsbonk.fun, more and more people have begun to look for potential wealth codes on this platform, but many have overlooked another big winner after the data surge of Letsbonk.fun — Raydium.

Why does the rise of Letsbonk.fun bode well for Raydium? The story begins with the feud between Pump.fun and Raydium.

Pump.fun's rebate, Raydium's counterattack

Regarding these stories, we have previously published several articles for follow-up reports. For details, please refer to "Data Analysis: How Much Does Raydium Rely on pump.fun?", "Raydium Strikes Back at pump.fun: Who Will Laugh Last in the Meme Comeback Season?", and "Pump.fun's Hegemony is Shaken for the First Time: Raydium's 'Pack of Wolves' Strategy has Worked."

In a brief overview, in the early design of Pump.fun, the token issuance goes through two stages: "internal" and "external". After the token is issued, it will first enter the "internal" trading stage, which relies on the bonding curve of the pump.fun protocol for matching. Once the trading volume reaches $69,000, it will enter the "external" trading stage, at which point liquidity will migrate to Raydium, where a pool will be created on that DEX and trading will continue.

However, Pump.fun announced the launch of its self-built AMM DEX product PumpSwap on March 21. Since then, the liquidity of Pump.fun tokens will no longer be migrated to Raydium when entering the "external market," but will be directed to PumpSwap — This move directly cuts off the flow path from Pump.fun to Raydium, thereby reducing the trading volume and fee income of the latter.

In response, Raydium announced on April 16 that it has officially launched the token issuance platform LaunchLab, allowing users to quickly issue tokens through the platform and automatically migrate to Raydium AMM after the token liquidity reaches a certain scale (85 SOL). Clearly, this is Raydium's direct counterattack against the aggressively emerging Pump.fun.

So what does this have to do with Letsbonk.fun?

Value Flow: Letsbonk.fun ➡️ LaunchLab ➡️ Raydium

Although LaunchLab's token issuance functionality is very similar to that of Pump.fun, its biggest feature does not lie in the issuance process itself — the architecture of LaunchLab supports third-party integration, which allows external teams and platforms to create and manage their own launch environments within the LaunchLab ecosystem. In other words, third parties can rely on LaunchLab's underlying technology and Raydium's liquidity pool to launch independent token launch frontends.

The main character of this article, Letsbonk.fun, is a third-party launch platform developed by the BONK team based on LaunchLab.

As a third-party platform developed based on LaunchLab, Letsbonk.fun adopts the fee mechanism of LaunchLab. For all Meme tokens issued based on Letsbonk.fun, LaunchLab will charge a 1% joint curve issuance fee, of which 25% is directly used for the repurchase of RAY; in addition, after the tokens exit the "internal market", Raydium will also charge based on the fee rules of the liquidity pool, and a portion of those fees will be used for the repurchase of RAY.

Odaily: The fee buyback ratio of different types of liquidity pools in Raydium.

Blockworks data shows that since the launch of LaunchLab on April 16, Raydium's protocol revenue and RAY repurchase volume have both shown significant growth, and their growth trajectory highly overlaps with the data fluctuations of the LaunchLab system — on May 13, the LaunchLab system platform surpassed Pump.fun for the first time in the number of tokens graduating, and that day Raydium set a recent repurchase peak of $325,000; in addition, with the recent explosion of Letsbonk.fun, Raydium's protocol revenue and RAY repurchase volume have again shown a significant uptick.

What is more noteworthy is that previously, Raydium's protocol income mainly came from the exchange fees of liquidity pools (the purple section in the chart below), but recently, the income from LaunchLab's issuance fees (the yellow section in the chart below) has gradually surpassed it, becoming Raydium's new primary source of income. Furthermore, 25% of these fees will be directly used for the buyback of RAY.

![Why is Raydium the biggest beneficiary of Letsbonk.fun's rise?](https://img-cdn.gateio.im/webp-social/moments-6d8487facbcb9b9b86e89e929d3a3759.webp01

Based on the static calculation of the repurchase data of 249,000 USD yesterday, Raydium will be able to invest approximately 90.88 million USD annually for the repurchase of RAY, while the current circulating market value of RAY is about 749 million USD, which means that 12% of the RAY market value will be repurchased each year. This will create a huge and ongoing buying pressure.

Beyond Meme, there is the Tokenization of US Stocks

In addition to the continuously growing revenue from LaunchLab fees, the recently popular tokenization of US stocks is also expected to boost Raydium's protocol revenue.

Previously, Kraken's tokenized stock platform xStocks has officially launched and issued a series of popular US stock tokenized certificates on Solana, most of which have already deployed liquidity pools on Raydium. Although the current trading volume is still limited and the fee contribution is not significant, considering the market trend of US stock tokenization, this sector also has strong revenue growth expectations.

Looking ahead, if Letsbonk.fun can continue to maintain its current market share (even without considering the growth of LaunchLab and other third-party platforms), Raydium is expected to sustain its current protocol revenue levels and repurchase efforts. Coupled with the potential growth expectations of U.S. stock trading, this data is likely to achieve further breakthroughs.