Pump.fun and Raydium "steal home" each other, and Solana's ecological competition "was rolled up"

"What did CZ push again today?"

If you are asking this, then obviously the recent BSC is one of the few hot spots on the chain.

As CZ and No. 1 sister continue to increase their activity on Twitter, the gameplay of attracting attention + creating Meme gradually surfaced; at the same time, relying on the powerful secondary traffic capabilities of the Binance APP, Binance Alpha is directly placed into the application, which also brings more popularity to Meme transactions.

In the overall bad market, BSC has a very good taste of coming first, and what is snatched is obviously Solana's on-chain popularity.

Traffic and fee income are the anxiety and desires of each chain.

Under business anxiety, there will inevitably be competition between different chains, but in fact, different protocols on the same chain are also competing.

For example, Pump.fun and Raydium each had each other's "imitation disk".

Pump.fun to do AMM

More than 20 days ago, Pump.fun started working on Raydium and launched a self-built AMM pool to try to divide the liquidity revenue originally belonging to Raydium.

Since users' transactions are first matched in the internal trading of Pump.fun, the transactions are completed by relying on the liquidity of the platform; when the internal trading is full, the transactions will be routed to the foreign trading, and the foreign trading actually relies on the liquidity pool of Raydium.

In this mode, Pump.fun has always been the "traffic provider" of Raydium, but it is also subject to Raydium's rules. Whenever the transaction flows to the outside market, Pump.fun needs to pay a portion of the transaction fee, and this part of the profit eventually flows to Raydium's liquidity provider (LP), and under the current state, each transaction on Raydium is charged a 0.25% handling fee.

The motivation for this matter is also very simple: to put it bluntly, Pump.fun, as a traffic entrance, did not completely eat the meat brought by traffic.

We mentioned at the time that in the bad environment, not only the leeks are PVP, but also the good show of the projects fighting each other is also being staged.

Raydium does Launchpad

And just today, Raydium's counterattack strategy has also surfaced.

According to Blockworks, Raydium is launching a token launch pad called LaunchLab, similar to a direct fork of pump.fun.

Although Raydium's official recommendation did not directly mention this new change, there was no wind and waves, which seemed to mean that Raydium and Pump.fun did not require a sense of ritual cooperation and tacit understanding, and were gradually broken.

As a spectator, this impression is very obvious---- Since you have snatched my job, I can snatch your job too.

Raydium's motivation is also very simple. As the backend of the liquidity pool, why not eat the front-end inlet traffic one step closer?

But the prerequisite for catching a living is to have strength.

For token launchers like Pump.fun, replicating a similar relatively simple product may not come from technology, but from capital.

The news further pointed out that Raydium still has about US$168 million on its balance sheet, which provides the greatest confidence to counterfeit a Pump.fun, that is, to invest people and money.

Blockworks' comments interviewed by an anonymous Raydium core contributor in the report indirectly prove this:

“The protocol started developing LaunchLab a few months ago, but put the project on hold because it 'didn't want the team to feel Raydium is competing directly with them'. This so-called magnanimity seems to have dried up after the AMM program of pump.fun's."

In other words, while Pump.fun is working as an AMM, Raydium is already thinking about making Launchpad.

This is more like a kind of competition, and a conscious action to make the business go further.

The project party is obviously more clear than the leek. Trading is the soul of the crypto business, and it is easier to eat meat by making a fuss around all aspects of the transaction.

Of course, it is best to have the ability to eat up all the links from the entrance to the back end.

Civil War moat

The essentially an AMM pool is an open source design, and it is not difficult to achieve a meme coin launcher; since there are no development barriers on both sides in products, Pump.fun and Raydium can already do their respective businesses;

The only question is, where is the moat on both sides and how to win?

Pump.fun's moat is obviously due to the traffic advantages brought by user habits. As a Meme coin launch platform, Pump.fun has firmly grasped the attention of some users through its unique community culture and user stickiness.

Once this user habit is formed, it will be difficult to easily transfer to other platforms. More importantly, Pump.fun's user ecosystem comes with its own traffic entrance attributes, which provides it with continuous growth momentum.

On the other hand, Raydium's moat is based on the urgent need for trading in its liquidity pool. As one of the most important DeFi infrastructures on Solana, Raydium’s ecological control is not only derived from its deep liquidity pool, but also its trading network status across the Solana chain.

In other words, Raydium’s advantages are not just technical, but the dependence of the entire ecosystem on it.

However, the strength of the moat is not just a static existence.

In the current environment, Pump.fun and Raydium's respective moats also face different challenges:

Whether Pump.fun's traffic can continue to grow depends on whether it can continuously launch new features and new gameplay that attracts users. Raydium needs to maintain its leading position in liquidity competition and further consolidate its ecological position through capital and technology investment.

Mobility is exhausted, how many people will participate in this civil

war?

A bigger problem surfaces when the two major agreements are busy competing with each other:

How many users will participate in this civil war? Is there really enough market space and user base support?

Judging from the current market environment, the crypto industry is in a downturn overall, with liquidity and user activity falling significantly compared with the previous one. In this context, whether it is Pump.fun or Raydium, what is fighting for is actually a shrinking cake.

Without new liquidity injection or no more "leeks" entering the market, this competition is actually of little significance.

Whether it is BSC, Solana or other public chains, inter-chain competition and in-chain competition are intensifying. Behind this competition is the industry's desire for traffic and fee income. However, if the overall environment of the crypto industry does not improve, this competition may end up being a flash in the pan.

For the entire industry, the real way to break through is not civil war or inter-chain war, but how to enhance the overall attractiveness of the industry. Whether it is through innovative product forms, lowering user thresholds, or through wider education and promotion, attracting new liquidity is the key to solving the problem.