Key Insights
Raydium has established itself as one of the most lucrative protocols in the cryptocurrency landscape. By annualizing its Q2 buyback allocation of $10.7 million, the RAY token achieved an earnings per token (EPT) of $0.21 at the end of Q2, based on an adjusted market capitalization of $441.7 million—resulting in a yield of 9.7%. The platform’s token launchpad, LaunchLab, which went operational in April, offers complimentary token launches and supports external integrations. In Q2, the combined trading volume for BONKfun and Raydium reached $1.1 billion through LaunchLab, contributing approximately $4.0 million (21.7%) to Raydium’s total net revenue of $18.4 million for that quarter. Additionally, LaunchLab’s integrated platforms surpassed Pump.fun in trading volume from July 6 to August 5.
During the second quarter, Raydium maintained its position as the top decentralized exchange (DEX) on Solana for the fifth consecutive quarter, capturing 28.9% of the total DEX volume, a decrease from 44.9% in Q1. The platform averaged $1.1 billion in daily trading volume during Q2, which marks a significant 69.2% decrease from the record-high of $3.6 billion in the previous quarter. This reduction in volume is consistent with a wider downturn in trading activities across Solana, particularly affecting memecoins. Raydium concluded Q2 with a total value locked (TVL) of $1.8 billion, reflecting a 54.7% quarter-over-quarter increase and an 85.9% year-over-year rise, largely due to a rebound in Solana asset prices.
Primer
Raydium (RAY) is recognized as the most prominent automated market maker (AMM) decentralized exchange (DEX) on the Solana blockchain by trading volume. Launched in 2021, Raydium empowers users to create new liquidity pools, contribute to existing ones, launch tokens, exchange tokens, and engage in perpetual futures trading without the need for permission. Liquidity providers earn transaction fees from each swap conducted within a pool, in addition to earning RAY tokens and/or other tokens if incentivized. RAY tokens can also be staked for additional rewards, and users can receive RAY for trading and creating tokens on Raydium’s LaunchLab platform.
In May 2024, Raydium introduced its V3 application, featuring updated Constant Product Market Maker (CPMM) pools that support the Token-2022 token program and include an integrated price oracle. Apart from traditional CPMM pools and its legacy standard AMM pools (AMM V4), Raydium also provides Concentrated Liquidity Market Maker (CLMM) pools that enable liquidity concentration at specific price levels. While CLMM pools offer reduced slippage for traders and increased earnings for liquidity providers (LPs), they also carry a heightened risk of impermanent loss. Trading and routing functionalities are accessible via Raydium’s API.
Recent advancements include the launch of Raydium Perps, a perpetual futures trading platform, on January 9, 2025, and the rollout of the LaunchLab token launch platform on April 16, 2025.
Key Metrics
As the leading DEX on Solana, Raydium’s trading volumes serve as an important indicator of overall activity within the network. During Q2, the average daily volume witnessed a steep decline of 69.2%, dropping from a high of $3.6 billion in Q1 to $1.1 billion. Adjusted daily average volume across all Solana DEXs also fell by 56.4%, from $4.7 billion to $3.0 billion. This adjusted figure is sourced from DefiLlama, which modifies DEX volumes by excluding what it classifies as wash trading and other artificial activities based on its specific criteria.
Raydium’s daily volume peaked at $16 billion on January 19, following the introduction of President Donald Trump’s memecoin, TRUMP, on January 17. At this time, both token prices and trading activity across the broader cryptocurrency market were at their zenith. Following this peak, daily trading volume on Raydium progressively decreased until April, reaching an average of $1.1 billion that month. In May, the average trading volume saw a rebound of 32.2% to $1.5 billion, but then fell again by 48.0% month-over-month to $772.9 million in June. The daily average volume for June represented an 87.8% drop from the record $6.3 billion that Raydium averaged in January, although it remained 36.1% above the previous 12-month low of $568 million recorded in September 2024. Notably, on July 18, Raydium surpassed $1 trillion in all-time trading volume and achieved $292.1 million in cumulative net revenue.
In Q2, CLMM pools surpassed V4 AMM pools in volume for the first time, accounting for $78.1 billion (75.7% share) compared to V4 AMM pools’ $19.7 billion (19.1% share), which together made up 94.9% of Raydium’s total volume. In contrast, V4 AMM pools accounted for $248.7 billion (75.2% share) in Q1, while CLMM pools represented $74.7 billion (22.6% share). Following CLMM and V4 AMM pools, CPMM pools recorded $5 billion in volume (4.8% share), while LaunchLab, Raydium’s new token launchpad, generated $309.2 million (0.3%). On July 20, CPMM pools outperformed V4 AMM pools in daily volume for the first time. Additionally, in July, Raydium’s CLMM program received an upgrade aimed at reducing rent costs by approximately 0.0024 SOL per pool, and support for custom block and allowlist functionality for real-world asset (RWA) issuers was introduced to ensure regulatory compliance.
LaunchLab Overview and Background
On April 16, Raydium unveiled LaunchLab, a token launchpad that allows for free token launches. Token creators have the option to select between a default JustSendit mode and customized settings through LaunchLab mode. Once a token’s bonding curve reaches a predetermined amount of SOL (85 SOL for JustSendit mode), the SOL along with its equivalent in token liquidity is transitioned to a Raydium AMM pool. Subsequently, LP tokens are burned, and trading continues within the Raydium pool.
Prior to the launch of LaunchLab, the Solana token launchpad Pump.fun introduced its own AMM called PumpSwap on March 20. Similar to other token launchpads, Pump.fun streamlines the token creation process for deployers, requiring only a name, ticker, and image to start trading on a bonding curve, with no associated fees. Previously, when Pump.fun tokens reached a market cap of $69,000, $12,000 was added to a standard AMM pool on Raydium, which supports a pricing range from zero to infinity. However, since the introduction of PumpSwap, Pump.fun has redirected liquidity to PumpSwap instead of Raydium.
Tokens initially launched on Pump.fun, such as FARTCOIN, have contributed significantly to trading volume on Raydium. From May 2024 until the launch of PumpSwap on March 20, tokens that originated from Pump.fun accounted for between 20% to 83% of Raydium’s total daily volume, depending on the specific day; since the launch, this has dropped to a range of 7% to 35%.
LaunchLab Mode
With LaunchLab mode, users can modify the percentage of the token supply sold on the bonding curve, with a minimum of 20% and a maximum of 80% being sold, while the remainder is transitioned to the AMM pool upon graduation. Furthermore, users have the option to lock and vest a portion of the token supply and set cliff and vesting periods. Creators can also activate a post-migration fee-sharing feature, allowing them to claim 10% of LP trading fees from the CPMM pool the token has graduated to (if this feature is disabled, migration is to an AMM V4 pool). This utilizes Raydium’s “Burn & Earn” feature, enabling creators to claim fees using a “Fee key” available on Raydium’s portfolio page.
Referral Program
LaunchLab incorporates a referral program, where each token page features a “Share” button that generates a unique referral link for each Solana address. When trades are made using that link, the referrer earns 0.1% (10 basis points) of the trade value. Rewards can be redeemed in SOL or the quoted token used in the corresponding AMM pool.
Third-Party Integrations
LaunchLab accommodates third-party integrations through a versatile Platform PDA (Program Derived Address) system that allows external teams to manage their own launch environments under their branding. By registering a Platform PDA, third parties can operate a distinct brand while leveraging LaunchLab’s infrastructure and Raydium’s AMM for liquidity. On April 25, BONK launched BONKfun, the most popular third-party token launchpad powered by LaunchLab to date. Additionally, LaunchLab features an SDK that provides tools and functions for interacting with its bonding curves.
LaunchLab Rewards
Raydium incentivizes traders and token creators on LaunchLab through a managed distribution of RAY tokens. At the end of April, the platform introduced LaunchLab Rewards, which award RAY tokens through actively managed prize pools to traders and token creators of all tokens launched via LaunchLab that conduct trades through partner platforms. The LaunchLab Leaderboard was activated on May 7, with daily rewards allocated based on the trading volume from the previous 24 hours. By May 12, approximately 950,000 RAY tokens (around 0.17% of the maximum supply) had been distributed. In June, the Raydium team initiated the LaunchLab Incentive Program, offering 50,000 RAY in weekly rewards, with unclaimed rewards rolling over throughout the month. The top 50 traders based on pre-graduation token volume from eligible LaunchLab SDK platforms received daily RAY rewards, while wallets ranked from 51 to 200 received raffle tickets for weekly RAY prizes. Token creators also benefit from fee rebates based on the trading volume their tokens generate prior to graduation and upon successful graduation from the bonding curve. In Q2, LaunchLab platforms collectively generated over $1.1 billion in trading volume. Notably, BONKfun contributed $818.8 million, while Raydium’s LaunchLab interface accounted for $309.2 million. Other significant launchpads integrated with LaunchLab include Pumpkin, DAO SZN, dripster.fun, and Cooking.City. Despite the substantial volume from BONKfun, it still yielded Raydium $4 million in net revenue, representing 21.7% of its total net revenue of $18.4 million. Raydium earns 25 basis points on all bonding curve swaps for tokens deployed, including those on other integrated platforms like BONKfun. From July 6 to August 5, the daily volume from BONKfun and Raydium’s LaunchLab exceeded that of Pump.fun, with the former two collectively capturing 69.7% of all Solana launchpad volume, compared to Pump.fun’s 27.0%. Moreover, LaunchLab generated $10.3 million in net revenue during this one-month span, more than doubling the $4 million earned in the entirety of Q2. Furthermore, on July 6, BONKfun became the first Solana token launchpad to surpass Pump.fun in 24-hour token launches. Since its inception in April through August 15, Raydium’s LaunchLab has facilitated $867.8 million in trading volume, while BONKfun has accounted for $4.7 billion.
TVL
At the close of Q2, Raydium reported a total value locked (TVL) of $1.8 billion, marking a 54.7% increase quarter-over-quarter from $1.1 billion at the end of Q1, and an 85.9% increase year-over-year from $944.7 million. A significant contributor to this quarterly surge was the 22.9% rise in the price of SOL, which climbed from $124.81 at Q1’s conclusion to $153.35 at the end of Q2. SOL comprised $871.5 million (47.2%) of Raydium’s TVL at the end of Q2, compared to $775 million (40.4%) at Q1’s close. However, as interest in stablecoins and other real-world assets (RWAs) like tokenized treasuries and stocks grows over time, SOL is expected to represent a smaller portion of Raydium’s TVL.
Historically, increases in Raydium’s TVL have been associated with heightened DEX trading volume. However, in Q2, TVL climbed while trading volume declined, as asset prices rebounded in spite of reduced trading activities, particularly in the memecoin sector, which previously drove record DEX volumes for Raydium.
Volume Share
Understanding volume share by token type is crucial in identifying trending tokens on Raydium. In Q2 2024, the share of trading volume attributed to memecoins fell from 33.3% to 18.5% in Q1 2025. Conversely, stablecoins saw their volume share increase from 11.8% in Q2 2024 to 25.8% in Q2 2025, a trend that has persisted into Q3. Additionally, DeFi volume share rose from 1.1% to 3.3%, and liquid staking token (LST) volume share grew from 1.0% to 2.0%.
This increase in volume share for stablecoins, DeFi, and LST tokens was driven by the comparatively lower decline in trading volume for these categories compared to other token types on a quarter-over-quarter basis. While all token types experienced a decrease in volume during Q2 2025, stablecoin, DeFi, and LST types saw declines ranging from 30% to 65%, significantly less than the 75% to 87% drops observed in meme, AI, and other token categories. Over longer time frames, trading volumes for stablecoin, DeFi, and LST types tend to exhibit less volatility compared to the greater fluctuations seen in meme and AI categories. Although token types with less volatility gain volume share when overall trading volume decreases, popular categories like memecoins and AI have historically driven significant growth in trading activity, particularly on the Solana network. In Q2, Raydium introduced liquidity pools for several wrapped tokens from leading networks, including Wrapped Bitcoin (WBTC) and Universal uAssets like uSUI, uXRP, and uDOGE. Additionally, xStocks by Kraken launched several tokenized equities on Solana, with liquidity pools for SPYx, APPLx, NVDAx, TSLAx, METAx, GOOGLx, COINx, QQQx, CRCLx, and MSTRx deployed on Raydium. Since their launch, these assets have generated substantial trading volume, with total trading volume for tokenized assets on Raydium exceeding $110 million by August 15, accounting for over 90% of all tokenized asset volume on Solana.
Solana DEX Volume Share
Q2 marked Raydium’s fifth consecutive quarter as the top player in Solana’s daily DEX volume, holding 28.9% of the total in comparison to 44.9% in Q1. This quarter also marked the second consecutive period where Raydium did not capture more than half of Solana’s DEX volume, a milestone it had previously maintained in Q3 and Q4 of 2024. New entrants like PumpSwap and established platforms such as Orbic contributed to the erosion of Raydium’s volume share, along with other DEXs that experienced less percentage decline in their quarterly volumes compared to Raydium.
Global Volume Share
When examining the broader landscape, Solana’s share of global DEX volume was recorded at 28.0% in Q2, down from 42.1% in Q1. This decline can be attributed to two primary factors: first, the drop in Solana’s DEX volume as previously discussed, and second, a remarkable 154.5% quarter-over-quarter surge in DEX volume on BNB Smart Chain, along with increases of 22.2% on Sui and 14.1% across other chains.
Raydium’s share of global DEX volume decreased from a record 17.0% in Q1 to 6.6% in Q2. However, on a year-over-year basis, Raydium’s share has increased by two percentage points from 4.6% in Q2 2024, indicating ongoing growth despite a retreat from peak levels. The quarterly reduction in global DEX volume share is attributed to Raydium’s drop in DEX trading volume, combined with modest growth of around 6% in volume from Uniswap, and approximately 100% growth in volume from PancakeSwap and Pump.
Raydium Perps
In its inaugural full quarter of operation, Raydium Perps averaged a daily trading volume of $15.9 million, reflecting a 27.1% decline quarter-over-quarter from $21.7 million. Following its launch on January 9, the volume peaked at $116.0 million on February 3, before gradually decreasing to a range of $4-$34 million in daily trading volume thereafter.
Perpetual futures are a type of derivative that allows traders to speculate on an asset’s price movements without a set expiration date. Raydium Perps leverages Orderly Network’s liquidity layer, providing gas-free trading with leverage options up to 50x across more than 120 trading pairs. During its current beta phase, maker trades are fee-free, while taker trades incur a fee of 0.0025% (2.5 basis points) charged by Orderly Network. To begin trading, users must connect a Solana wallet, register to generate an API Key, and deposit USDC, which is the sole accepted collateral form. A future release is planned to incorporate a swap and bridge feature for depositing any asset converted to USDC collateral.
Financial Analysis
At the conclusion of Q2, RAY’s circulating market capitalization stood at $570.8 million, reflecting a 15.3% increase quarter-over-quarter. However, daily average fees experienced a sharp decline of 87.7%, dropping from $8.8 million to $1.1
