Pump.fun Launches PumpSwap as New Decentralized Exchange (DEX), Parting Ways with Raydium
As the competition in Solana’s meme coin launch and trading platform intensifies, Pump.fun has announced the launch of its decentralized exchange (DEX) “PumpSwap,” marking a formal split with its partner Raydium. Through zero migration fees, low transaction fees, and a future creator revenue-sharing mechanism, Pump.fun aims to attract a large number of traders.
PumpSwap Officially Launches as the New Home for Pump.fun Meme Coins
Pump.fun has announced the launch of its own DEX “PumpSwap,” symbolizing that in the future, meme coins will no longer launch on Raydium but instead directly trade on PumpSwap.
Introducing PumpSwap, Pump’s new native DEX
beginning NOW all coins that complete their bonding curve will migrate directly to PumpSwap
PumpSwap enables
– instant migrations
– 0 migration fees (down from 6 SOL)
– more liquidity
– creator revenue sharing (coming soon)
& more
Since March 20, all meme coins that successfully activate liquidity on Pump.fun—completing their bonding curve—will migrate directly to PumpSwap, without the need for Raydium. This eliminates the cumbersome migration process and associated costs.
This news was first released last month when the community discovered that Pump.fun was testing a new website or feature called “amm.pump.fun,” which was seen as a parting of ways with Raydium, significantly impacting Raydium’s trading fee revenue.
(Pump.Fun Develops its Own AMM, Raydium Token Drops Nearly 30%)
Co-Founder Alon: Aiming to Escape the Crypto Bubble
According to official statements, PumpSwap operates similarly to Raydium V4 and Uniswap V2, with each transaction carrying a 0.25% fee. Of this, 0.2% is distributed to liquidity providers, and 0.05% serves as protocol revenue. At the same time, the 6 SOL migration fee previously required for moving Pump.fun tokens to Raydium will be eliminated, lowering the participation threshold.
The team emphasized that PumpSwap aims to create the “most frictionless trading environment”:
“Past launch processes have become major obstacles, slowing down coin price momentum and confusing novice users. Now, migration is not only instant but also free.”
Pump.fun co-founder Alon stated: “Our goal has always been to create a product that can escape the crypto bubble and attract mainstream users.”
PumpSwap is a significant step toward this goal, offering a more user-friendly, rewarding, and sustainable mechanism.
Pump.fun and Raydium Transition from Partners to Competitors
The timing of PumpSwap’s launch is noteworthy, as Raydium had recently announced the upcoming launch of its own meme coin issuance platform “LaunchLab,” signaling the competitive relationship between the two platforms.
(Solana AMM Raydium Set to Split from Pump.Fun, Launches Its Own Meme Coin Issuance Platform: LaunchLab)
This rivalry may alter Solana’s DeFi ecosystem, particularly as meme coin trading volumes have significantly declined since the explosion in January, undoubtedly escalating competition.
Alon commented: “We welcome competition because, in the end, the users are the ones who benefit.” In addition to Raydium, other emerging platforms such as Daos.fun, GoFundMeme, and Pumpkin are also competing for Solana’s meme coin market share. In this context, PumpSwap plans to adopt one of GoFundMeme’s features: “Revenue sharing with creators.”
If this mechanism succeeds, millions of dollars will flow to the creator community, incentivizing the creation of higher-quality tokens.
Decline of Meme Coin Frenzy and Shrinking Platform Revenue
Previous reports indicated that Solana’s weekly blockchain revenue has plummeted 93% from a peak of $55.3 million in mid-January, down to only $4 million last week, returning to the levels seen in September of last year. Similarly, weekly revenue from decentralized applications (DApps) has dropped sharply from $238 million to $32 million, an 86% decrease.
(After the Burst of the Meme Coin Bubble: Trading Bot Revenues Plunge, GMGN Near Collapse?)
Among these, Pump.fun’s daily revenue has dramatically decreased from $15 million to $800,000, with the number of successfully issued meme coins dropping by more than 90% from the January peak. This is related to several controversies surrounding meme coins, which have severely dampened retail investor confidence.
Despite the challenges posed by declining trading volumes and cooling enthusiasm, Pump.fun seems determined to reinvigorate the Solana ecosystem and its products through product innovation and business model adjustments.
Risk Warning
Cryptocurrency investment carries high risks, and its prices can fluctuate significantly, potentially causing a total loss of principal. Please assess the risks carefully.