Pump.fun’s new decentralized exchange (DEX), PumpSwap, has hit $1.1 billion in trading volume just a week after launch. Despite this impressive start, the memecoin market on Solana is showing signs of slowing down.
PumpSwap Records $1M in Daily Fees
Launched on March 19, PumpSwap aims to streamline memecoin trading on Solana. Previously, users had to migrate liquidity to Raydium, adding complexity to the process. With PumpSwap, migrations happen instantly and for free.
In just seven days, PumpSwap reached a cumulative trading volume of $1.1 billion, according to Dune Analytics. On March 24, daily volume surged to $425 million, an eightfold increase from its launch day. The platform also recorded 4.2 million transactions and over 388,000 active users.
PumpSwap vs. Raydium: A New Rivalry?
PumpSwap’s rapid growth comes amid Raydium’s plan to launch its own memecoin platform, LaunchLab. This shift transforms the two Solana projects from partners to competitors in the growing memecoin ecosystem.
PumpSwap’s daily protocol fees exceeded $2.1 million, with liquidity provider fees hitting $540,000. Analysts note that the platform’s $1 million daily fees now rival those of Pump.fun itself.
Memecoin Frenzy Fades—Can PumpSwap Sustain Growth?
Pump.fun’s DEX launch coincides with a decline in Solana’s memecoin activity. Data from Solscan shows that daily token minting on Solana peaked at 95,578 on January 26 but has since dropped to 26,298 on March 22.
Similarly, the number of new tokens successfully listing on DEXs via Pump.fun’s bonding curve fell from 1,200 in January to just 149 on March 20. The overall slowdown has impacted Solana’s revenue, which plummeted 93% from $55.3 million in mid-January to $4 million by March 11.
Despite these challenges, PumpSwap’s strong initial performance suggests that demand for memecoin trading remains high. Whether it can maintain this momentum as the market cools remains to be seen.
