- PumpSwap hit $2.43 billion in trading volume within 10 days.
- MEXC integration helps expand access, increasing liquidity potential.
PumpSwap, the new exchange (DEX) built by Pump.fun, has taken off fast. In just 10 days, it has processed $2.43 billion in trading volume. The platform has also generated over yp$5.4 million in protocol fees, welcomed 700,000 active wallets, and recorded more than 30.5 million swaps, according to data by Dune Analytics.
Despite Raydium still holding a dominant 74% share of the Solana DEX market as of March 30, PumpSwap is making waves. It now accounts for 8% of Solana’s total DEX trading volume. The platform’s sensational growth could mean a shift in the memecoin market, as attention is being drawn to its unique features.
How PumpSwap is Changing Memecoin Trading
Before creating PumpSwap, Solana memecoins launched on Pump.fun were traded on Raydium which made trading activities more complicated for users.
PumpSwap is expected to cut out that extra step, which allows users to trade, provide liquidity, and create tokens all on a single platform. It operates on a constant product automated market maker model, similar to Uniswap V2 and Raydium V4.
The platform originally charged a six-SOL migration fee to Raydium but has now replaced it with a 0.25% trading fee. Of that, 0.20% goes to liquidity providers, while 0.05% stays with the protocol. This setup is expected to evolve with the introduction of Creator Revenue Sharing.
One big reason PumpSwap took off so fast is its partnership with MEXC. On March 25, MEXC announced it was adding PumpSwap to its DEX+ aggregator. This partnership results in a massive adoption for PumpSwap as MEXC 34 millions users in over 170 countries will be able to trade PumpSwap-listed tokens directly through the exchange’s platforms.
The integration will potentially drive more accessibility and liquidity for traders in the platform. Now that memecoin trading has cooled off but gradually waking up, PumpSwap’s latest partnership and expansion might be another boost to revive memecoin trading and its momentum.
Will PumpSwap Keep Up the Pace?
While PumpSwap’s has witnessed early growth and adoption rate, the broader Solana DEX market faces a downturn. Data by DeFiLama reveals that Solana’s total DEX volume has dropped from $258 billion in January to $50 billion in March. Pump.fun and Raydium have already positioned themselves for a market rebound. In a fast reply to PumpSwap’s launch, Raydium also launched its memecoin incubator, called LaunchLab.
Pump.fun further hints at a possible launching of its own native token, which could add to its use cases and boost trading activities.
The pumpfun team via an X space teased about PumpSwap’s native token during an AMA session. The team further expressed its mission to create something like Binance and bigger.
Whether PumpSwap can maintain its strong performance will depend on how it adapts to market changes and keeps attracting traders.
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