Pump.fun has introduced its own decentralized exchange (DEX), PumpSwap, potentially overtaking Raydium as the go-to platform for trading Solana-based memecoins.
Starting March 20, memecoins that complete the liquidity bootstrapping phase, known as “bonding,” on Pump.fun will transition directly to PumpSwap, as announced by the project on X.
Previously, these bonded tokens migrated to Raydium, which had become Solana’s dominant DEX largely due to memecoin trading activity.
According to Pump.fun, PumpSwap operates similarly to Raydium V4 and Uniswap V2, designed to offer a seamless trading experience with minimal friction.
“Migrations were a major hurdle, slowing down momentum and adding unnecessary complexity for new users,” Pump.fun explained. “Now, migrations are instant and cost-free.”
Rising Competition in the Space
This development follows Raydium’s recent announcement of its own memecoin launchpad, LaunchLab, which directly challenges Pump.fun’s position in the market.
The shift from collaboration to rivalry between Pump.fun and Raydium is reshaping Solana’s decentralized finance (DeFi) landscape, particularly as memecoin trading volumes have significantly dropped since their January peak.
“We embrace competition because, in the end, it benefits the users,” said Alon, a co-founder of Pump.fun, in a statement on March 20.
Meanwhile, other emerging platforms like Daos.fun, GoFundMeme, and Pumpkin are also competing for a share of the growing Solana memecoin sector.
PumpSwap is set to implement a key feature popularized by GoFundMeme—revenue sharing with memecoin creators.
“Soon, a portion of the protocol’s revenue will be distributed to coin creators,” Pump.fun stated. “If successful, this could direct millions toward aligning creators with their communities and fostering higher-quality launches.”
Memecoin Market Decline
The number of successful memecoin launches on Pump.fun has plummeted by approximately 80% since January, following a series of memecoin-related controversies that dampened retail investor sentiment.
Pump.fun’s daily fee revenue, which exceeded $4 million in January, has dropped to around $1 million by mid-March, according to both the platform’s spokesperson and DefiLlama data.
Despite the downturn, memecoins fueled massive growth on Solana in 2024, with the chain’s total value locked (TVL) surging from $1.4 billion to over $9 billion within the year, as per DefiLlama.
Raydium was among the biggest beneficiaries, with daily trading volumes skyrocketing from $245 million to over $2 billion in 2024.
In January, Raydium introduced a leveraged perpetual futures trading platform in an effort to compete with Jupiter, another major DeFi protocol on Solana.
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