In just ten days following its inception, PumpSwap, a decentralized exchange developed by Pump.fun, has amassed an impressive cumulative trading volume of $2.43 billion.
Since its launch on March 20, the platform has generated $5.4 million in protocol fees, gained 700,000 active wallets, and facilitated 30.59 million swaps, as per data from Dune Analytics.
While Raydium (RAY) commanded 74% of the market share as of March 30, PumpSwap has quickly gained momentum, capturing 8% of Solana’s (SOL) overall DEX trading volume.
PumpSwap was designed by Pump.fun to simplify the trading of memecoins and liquidity provision. Previously, memecoins launched on Pump.fun transitioned to Raydium after the bonding curve was completed.
The platform eliminates this additional step by integrating trading, liquidity provision, and token creation into a unified platform, thus facilitating fast and free migrations. Similar to Raydium v4 and Uniswap (UNI) v2, PumpSwap employs a constant product automated market maker model and establishes pricing based on liquidity pools rather than order books.
Initially, Pump.fun imposed a six-SOL migration fee to Raydium, which has now been replaced by a 0.25% trading fee on PumpSwap. Out of this, 0.20% is allocated to liquidity providers and 0.05% to the protocol. This fee structure is expected to adapt with the introduction of Creator Revenue Sharing.
The rapid adoption of PumpSwap was recently enhanced by its integration with MEXC, a leading cryptocurrency exchange. On March 25, MEXC announced that it would support PumpSwap through its DEX+ aggregator.
MEXC’s user base of over 34 million across 170 countries can now conveniently access tokens on PumpSwap via the MEXC app and website, making it the first aggregator to enable direct trading of tokens listed on PumpSwap. This development could significantly attract more liquidity and traders to the platform.
As the excitement around memecoins subsides, Solana’s overall DEX volume has seen a substantial decline, plummeting from $258 billion in January to just $50 billion in March, according to DefiLlama data. Nevertheless, both Pump.fun and Raydium—now featuring its LaunchLab incubator—appear to be positioning themselves for a potential market upswing.