Pump.fun Launches PumpSwap DEX, Moves Away from Raydium
Pump.fun has introduced its own decentralized exchange (DEX), PumpSwap, signaling a shift away from Raydium as the primary trading platform for Solana (SOL) memecoins.
Key Highlights
- Pump.fun launches PumpSwap, its own decentralized exchange.
- Previously, Pump.fun tokens migrated to Raydium after liquidity bootstrapping.
- Starting March 20, tokens bonded on Pump.fun will migrate directly to PumpSwap.
- PumpSwap aims to reduce friction and complexity in token migrations.
- Raydium recently announced its own memecoin launchpad, LaunchLab, intensifying competition.
Reducing Friction for Users
Pump.fun stated that PumpSwap operates similarly to Raydium V4 and Uniswap V2, aiming to create a seamless trading environment. The new DEX eliminates migration delays and fees, allowing instant and free token migrations.
Competition Heats Up
The launch of PumpSwap follows Raydium’s recent announcement of LaunchLab, a memecoin launchpad designed to compete directly with Pump.fun. This shift from partnership to competition could significantly reshape Solana’s decentralized finance (DeFi) landscape.
“We welcome competition because users win at the end of the day,” said Alon, a Pump.fun co-founder.
Other emerging platforms, including Daos.fun, GoFundMeme, and Pumpkin, are also competing for market share. PumpSwap plans to adopt revenue-sharing features similar to GoFundMeme, incentivizing creators by sharing protocol revenue.
Declining Memecoin Activity
Memecoin trading activity on Solana has significantly declined since January highs, following several scandals that dampened retail trader enthusiasm. Pump.fun’s daily fee revenue dropped from over $4 million in January to around $1 million by mid-March.
Despite the recent downturn, memecoins were a major growth driver for Solana in 2024, boosting the chain’s total value locked (TVL) from approximately $1.4 billion to over $9 billion. Raydium benefited greatly, with daily trading volumes rising from $245 million to over $2 billion during the same period.
