The new decentralized exchange (DEX) PumpSwap, launched by the memecoin launchpad Pump.fun, has already eclipsed a total trading volume of over $1 billion just one week post-launch, as reported by a blockchain analytics platform.
On March 19, the team behind Pump.fun introduced their own Solana DEX, aiming to establish a “frictionless environment” for trading memecoins. Prior to this, memecoins introduced on Pump.fun had to transition to the Solana DEX Raydium after securing liquidity, making Raydium the leading DEX in the Solana ecosystem.
The Pump.fun team indicated that these migrations hindered token momentum and added “unnecessary complexity” for newcomers. With the implementation of the new DEX, they promised that migrations would be instant and cost-free.
Just a week following its debut, PumpSwap achieved a total volume exceeding $1 billion. A dashboard created by an on-chain analyst revealed that PumpSwap had recorded an all-time trading volume of $1.1 billion within its first seven days.
PumpSwap DEX lifetime trading volume milestones. Source: Blockchain Analytics
PumpSwap surpasses $1.1 billion in trading volume
The number of daily swaps peaked on March 24, reaching 4.2 million transactions. The DEX’s total number of swaps exceeded 11 million, and the active user count surpassed 388,000, according to the analyzed data.
Moreover, the fees accrued on the PumpSwap protocol surpassed $2.1 million, with liquidity provider fees exceeding $540,000. According to the dashboard creator, the $1 million in daily fees generated on March 24 are already “on par” with the overall performance of Pump.fun.
Source: Analyst Insights
The launch of PumpSwap coincides with the announcement that Raydium plans to develop its own memecoin launchpad, LaunchLab. This latest development within the ecosystem alters the dynamics between Pump.fun and Raydium, transforming their relationship from collaboration to competition.
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Pump.fun introduces DEX amidst a decline in memecoin popularity
The introduction of this new venture emerges as the Solana memecoin craze begins to lose momentum. According to analytics data, daily token-minting activity on Solana peaked at 95,578 on January 26, but has since dropped to a low of 26,298 mints as of March 22.
Additionally, the number of successful new token listings from Pump.fun has also seen a decline. Analytics data indicated that the daily count of tokens completing Pump.fun’s “bonding curve” requirement for DEX listing decreased from nearly 1,200 on January 23 and 24 to just 149 on March 20.
This decline in memecoins has also impacted Solana’s weekly revenue. As of March 11, the network’s weekly earnings fell to $4 million from a peak of $55.3 million in mid-January, reflecting a staggering 93% decrease in the blockchain’s total weekly revenue.
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