2025-03-26
PumpSwap, a new decentralized exchange
(DEX) launched by Pump.fun, has seen over $1.6 billion in trading volume in its
first week.
Most of that volume which is $584 million came in on March 25 alone, according to Dune Analytics.
PumpSwap launched on March 20 and has
already processed over 12.5 million swaps from more than 400,000 active users.
This comes at a good time for Pump.fun,
which has been struggling due to a slowdown in the memecoin market.
Now, with PumpSwap, users who create
tokens on Pump.fun can instantly trade them on the DEX, skipping the usual 6
SOL migration fee.
There are also plans to let token
creators earn a share of the platform’s revenue in the future.
So far, PumpSwap has made $2.4 million
in protocol fees.
Liquidity providers, which are the people
who supply tokens to the DEX have earned over $600,000 in fees.
The platform charges a 0.25% fee per
trade, with most of it going to these providers.
Even though the overall numbers are
high, most trades are small. Data shows that over 65% of trades are under $10,
and another 21% are between $10 and $100.
This suggests users are still testing
the platform or hoping to qualify for a future airdrop.
Still, the platform has gained a lot of
attention, with 3.57 million unique users and 823 tokens launched so far.
Is PumpSwap a threat to Raydium?
Some people think PumpSwap could
eventually challenge Raydium, the top DEX on Solana.
Raydium had $2.53 billion in volume
over the past week and currently handles about 28% of all Solana DEX trades.
PumpSwap is currently in fifth place
behind Raydium, Orca, Meteora, and Linfinity.
But Raydium isn’t sitting back. It
recently launched LaunchLab, a platform for launching all kinds of tokens—not
just memecoins.
So far, Raydium hasn't been affected.
Its token, RAY, is up 22% this week, and trading volume remains strong.
The biggest winner in all of this might
be Solana itself. SOL, the network’s token, is up 2% in the last day and 17%
over the past week.
