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Memecoin launchpad Pump.fun’s new decentralized exchange (DEX), PumpSwap, surpasses $1 billion in trading volume
According to blockchain analytics platform Dune, Pump.fun’s newly launched Solana DEX, PumpSwap, exceeded a cumulative trading volume of $1 billion just one week after its launch.
On March 19, Pump.fun launched its Solana DEX to create a “frictionless environment” for memecoin trading. Previously, memecoins launched on Pump.fun needed to migrate into the Solana DEX Raydium after bootstrapping liquidity, despite which the trading platform became the most popular DEX in Solana.
Still, the Pump.fun team stated that these migrations slowed token momentum and introduced “needless complexity” for new users. With the new DEX, the project claims that migrations happen instantly and are free.
A Dune Analytics dashboard by on-chain analyst Adam_Tehc showed that PumpSwap had an all-time trading volume of $1.1 billion in its first seven days.
PumpSwap exceeds $1.1 billion in trading volume
On its first day, the platform had a modest trading volume of about $50 million. By March 24, the volume had spiked eightfold, surpassing $425 million in trading volume.
Daily swaps on the platform peaked on March 24, recording 4.2 million transactions. The DEX’s cumulative number of swaps surpassed 11 million, while the number of active users has exceeded 388,000, according to the data.
The data also showed that fees on the PumpSwap protocol exceeded $2.1 million, while liquidity provider fees surpassed $540,000. According to the Dune Dashboard’s creator, PumpSwap’s $1 million daily fees generated on March 24 were already “on par” with Pump.fun.
Raydium responds with LaunchLab as competition heats up
PumpSwap’s launch follows news that Raydium plans to create its own memecoin launchpad, LaunchLab. The latest developments in the ecosystem have shifted the dynamics between Pump.fun and Raydium, turning the two Solana projects from partners into competitors.
Pump.fun launches DEX amid memecoin decline
Pump.fun’s new business venture comes as the Solana memecoin frenzy has begun to lose momentum. Solscan data shows that Solana’s daily token-minting peaked at 95,578 on January 26. Since then, daily mints have declined, reaching a low of 26,298 mints on March 22.
Successful new listings from tokens created on Pump.fun have also declined. Dune Analytics data showed that the daily number of tokens completing Pump.fun’s “bonding curve,” a requirement for DEX listing, dropped from highs of almost 1,200 on January 23 and 24 to 149 on March 20.
The memecoin decline has also affected Solana’s weekly revenue. On March 11, the network’s weekly revenue dropped to $4 million from its high of $55.3 million in mid-January, at the peak of the memecoin frenzy. This represents a 93% decline in the blockchain’s total weekly revenue.