Pump.fun’s New DEX, PumpSwap, Hits $1B in Trading Volume Just One Week After Launch

Pump.fun, the memecoin launchpad that has taken the crypto world by storm, has launched its highly anticipated decentralized exchange (DEX), PumpSwap, which has achieved a major milestone in just one week. According to blockchain analytics platform Dune Analytics, PumpSwap surpassed $1 billion in cumulative trading volume within its first seven days of operation.

The launch of PumpSwap, which occurred on March 19, was designed to address inefficiencies in the Solana ecosystem, particularly for memecoin trading. Prior to this, tokens launched on Pump.fun were required to migrate to Raydium, the largest Solana-based decentralized exchange, after initial liquidity bootstrapping. However, these migrations led to complications for users and slowed down token momentum, which Pump.fun aims to resolve with its new platform. With PumpSwap, the process is now instantaneous and completely free, creating a smoother, more frictionless trading experience.

Rapid Growth and Success

Since its launch, PumpSwap has been on an impressive upward trajectory. On March 24, just five days after launch, the platform recorded over $425 million in trading volume for the day, a stark increase from its relatively modest first-day volume of $50 million. This exponential growth has been accompanied by a surge in user activity. PumpSwap has processed over 4.2 million swaps in a single day, bringing the total number of swaps to more than 11 million. Active users have topped 388,000, showcasing the platform’s widespread adoption in a short time.

Revenue and Fees Surge

One of the key metrics for any DEX is the fees it generates, and PumpSwap is no exception. On March 24, the platform recorded more than $1 million in daily fees, which is in line with Pump.fun’s established benchmarks. In total, PumpSwap’s all-time revenue for the first week exceeded $2.1 million, with liquidity provider fees amounting to more than $540,000. These figures reflect a growing interest and confidence in the platform, as users increasingly turn to it for their memecoin trading needs.

A Shift in the Solana Ecosystem

The launch of PumpSwap also coincides with a shift in the dynamics between Pump.fun and Raydium. The two Solana-based projects, once partners, are now competitors following the announcement that Raydium plans to develop its own memecoin launchpad called LaunchLab. The growing popularity of PumpSwap threatens to diminish Raydium’s dominance in the Solana DEX space, as more memecoin traders flock to the new platform.

In addition to the competition between these two projects, Pump.fun’s new offering comes at a time when the Solana memecoin frenzy seems to be cooling off. According to Solscan data, the daily minting of Solana tokens peaked at 95,578 on January 26 but has since dropped significantly, reaching a low of 26,298 mints on March 22. Likewise, the number of tokens completing Pump.fun’s bonding curve—a requirement for DEX listing—has sharply declined, from nearly 1,200 in late January to just 149 by March 20.

The Bigger Picture: Solana’s Declining Revenue

The slowdown in the memecoin market has also been reflected in Solana’s overall revenue. On March 11, Solana’s weekly revenue plummeted to $4 million, a dramatic drop from its peak of $55.3 million in mid-January during the height of the memecoin boom. This represents a staggering 93% drop in the blockchain’s weekly earnings, further indicating that the memecoin market may be losing steam.

Despite these challenges, PumpSwap’s success offers a glimmer of hope for the future of memecoin trading on Solana. With its user-friendly interface, instant migrations, and impressive growth trajectory, PumpSwap could become a cornerstone of the Solana ecosystem moving forward.

For more details on PumpSwap's performance, check out the Dune Analytics dashboard and the latest data from Pump.fun.

Links for Further Reading:

• Pump.fun Official Website

• Raydium’s LaunchLab Announcement