Pump.Fun could launch its own distributed exchange (DEX), called Pumpswap, potentially replacing Raydium as the main trading venue for Solana (Sol) Memecoins.
Starting March 20th, Memecoins, which bootstrapped liquidity or “bonds,” states in X-Post, as Pump.Fun moves directly to Pumpswap.
Previously, the combined Pump.fun tokens were moved to Raydium. This has emerged as Solana’s most popular dex thanks to Memecoins’ trading activities.
According to Pump.Fun, Pumpswap is “works like the Raydium V4 & Uniswap V2” and is designed “to create the most frictionless environment for trading coins.”
“(M)i gigations have been a major point of friction. It slows down the momentum of the coin and brings unnecessary complexity to new users,” says Pump.fun.
“(n)OW, the move happens instantly and for free.”
Raydium’s trading volume surged in 2024, primarily by Memecoins. sauce: defill
Related: Solana Shorts Spikes amid Memecoin Scandal
The rise in competition
The launch will be its own Memecoin Launchpad (just a few days after Raydium plans to create its own Memecoin Launchpad called Launchlab) to compete directly with Pump.fun.
The transition from Pump.Fun and Raydium partners to competitors stands to rebuild Solana’s distributed financial (Defi) ecosystem when Memecoin’s trading volume has drastically dropped from its January high.
Alon, one of the co-founders of Pump.Fun, told Cointelegraph on March 20th.
Other emerging protocols such as Daos.fun, Gofundmeme and Pumpkin are also competing for the share of Solana’s Memecoin market.
Pumpswap will adopt a revenue sharing with Memecoin Creators, one of rival Gofundmeme’s most popular features.
Soon, “a proportion of protocol revenue will be shared with coin creators,” Pump.Fun said.
“If successful, millions of dollars will work together with the community to encourage higher quality launches.”
Pump.Fun’s fee revenue has been declining since January. sauce: defill
Memocoin activity declines
On February 27th, Cointelegraph reported that Memecoin had been released on Pump.Fun.
According to data from Pump.Fun’s spokesman and Defillama, Pumpun’s average daily fee revenue fell from more than $4 million in January to about $1 million in mid-March.
According to Defillama, MemeCoins experienced explosive growth in Solana in 2024, with the chain’s total value (TVL) rising from about $1.4 billion to more than $9 billion that year.
Raydium is one of the biggest beneficiaries, with daily volumes skyrocketing from around $245 million to over $2 billion over the course of 2024, Defillama data shows.
In January, Raydium launched a leveraged, permanent futures trading platform to challenge the incumbent Jupiter, another top Solana Defi protocol.
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