In a remarkable showcasing of traction within the crypto market, Pump.fun’s newly launched decentralized exchange (DEX), PumpSwap, has surpassed a cumulative trading volume of over $1 billion just one week post-launch, as confirmed by blockchain analytics platform Dune. The launch, which took place on March 19, is positioned as a strategic move to enhance a “frictionless environment” for memecoin trading.
Prior to the advent of PumpSwap, memecoins traded on Pump.fun were required to migrate into the Solana DEX Raydium upon liquidity bootstrapping, leading to a deceleration in token momentum and introducing unnecessary complexities for new users. The developers highlighted that with the new DEX, these migrations are instantaneous and free of charge.
PumpSwap’s Trendsetting Volume Milestone
In its inaugural day, PumpSwap registered a trading volume of approximately $50 million. However, this figure skyrocketed just days later; on March 24, trading volume dramatically spiked to over $425 million. The DEX recorded a peak of 4.2 million daily transactions on the same day, pushing its cumulative swaps beyond the 11 million mark and attracting over 388,000 active users, according to data reports.
The financial implications of this substantial activity have not gone unnoticed. PumpSwap’s protocol fees exceeded $2.1 million, alongside liquidity provider fees surpassing $540,000. Notably, on March 24 alone, PumpSwap generated upwards of $1 million in daily fees, a figure already indicative of a promising trajectory.
PumpSwap DEX lifetime trading volume reaches. Source: Dune Analytics
PumpSwap’s emergence coincides with the recent announcement from Raydium about plans to develop its own memecoin launchpad, LaunchLab. This move alters the competitive landscape between Pump.fun and Raydium, effectively transforming the two previously allied Solana projects into direct competitors.
Context Amidst the Memecoin Market Dynamics
The launch of Pump.fun’s DEX is particularly salient given that the Solana memecoin market is reportedly beginning to show signs of cooling. Data from Solscan indicates that daily token minting peaked at 95,578 on January 26, subsequently declining to a low of 26,298 on March 22. Moreover, the frequency of successful listings from tokens originating at Pump.fun has also witnessed a downturn, with bonding curve completions dropping from nearly 1,200 in late January to just 149 on March 20.
This downturn in the memecoin sector has had significant ripple effects on Solana’s broader economic landscape, with the network’s total weekly revenue plummeting to $4 million from a staggering $55.3 million witnessed in January, representing a 93% decline.
As the landscape evolves, it will be imperative for stakeholders to observe how Pump.fun and PumpSwap navigate these turbulent waters and adapt their strategies in a shifting market.
Related Reading: Memecoins are dead — But Solana ‘100x better’ despite revenue plunge
