Blockworks Research Report: PumpFun’s AMM Platform PumpSwap Transforms the Solana Ecosystem in Just One Week
In a remarkable turn of events, PumpSwap, the AMM platform launched by PumpFun, has rewritten the landscape of the Solana ecosystem within just a week. As of yesterday, PumpSwap’s trading volume officially surpassed Raydium, becoming the largest decentralized exchange (DEX) on Solana, showcasing its strong growth potential and market appeal.
PumpSwap Emerges and Takes the Market Lead in One Week
Dune data indicates that since its launch on March 20, PumpSwap has quickly accumulated a total trading volume of $2.4 billion, generating $4.8 million in fee revenue for the protocol. PumpSwap’s AMM market share has surged to 42.3%, significantly ahead of Raydium’s 34.2%.
Additionally, on March 27, it set a record for daily trading fees at $2.67 million, demonstrating a continued increase in user engagement and trading activity.
Farewell Raydium! Pump.fun Launches PumpSwap to Regain Control of Meme Coin Trading
The Blockworks Research report further details that in January this year, PumpFun’s revenue reached $7 million, of which $1.5 million came from external trading fees. Since the launch of PumpSwap, not only has it eliminated the need to pay fees to Raydium, but it has also brought in an additional revenue of over $250,000 for the platform.
Although other external trading tools still extract fees, the introduction of PumpSwap has significantly increased the proportion of revenue generated by PumpFun itself, reflecting an overall enhancement in operational efficiency.
User Behavior Insights: Retail Investors Dominate
Data shows that approximately 30% of PumpFun’s trading comes from external platforms, while PumpSwap accounts for 40%. Moreover, 20% comes from DEX aggregators, illustrating the platform’s ecosystem’s heavy reliance on third-party tools like Telegram trading bots to drive trading activity. This may be related to user habits or convenience of use.
At the same time, over half of the trading amounts fall between $1 and $10, reflecting the market’s predominant characteristics of retail trading.
Token Launches Rebound, but Overall Market Value Remains Below Peak
Following the launch of PumpSwap, the number of tokens successfully launched daily peaked at 500, showing a recovery trend, though it has not yet returned to the near 1,000 tokens per day seen in January.
The total market value of PumpFun’s tokens is currently around $3.5 billion, down from the peak of $12 billion. As users no longer need to migrate filled tokens to Raydium, the overall operational process has become smoother, enhancing platform retention.
Raydium Prepares for Separation with the Launch of New Token Launch Platform LaunchLab
In response, Raydium has also announced the upcoming launch of its own meme coin issuance platform, LaunchLab, indicating preparations to part ways with PumpFun.
Can PumpSwap Lead the Next Wave of On-Chain Excitement?
As PumpFun co-founder Alon previously stated, his hopes for PumpSwap are to lower barriers, increase rewards, and optimize user experience to achieve the goal of “allowing non-crypto native users to participate easily.” He noted:
“Our goal has always been to create a product that can break free from the crypto bubble and attract mainstream users. PumpSwap is an important step toward that goal, providing a more friendly, rewarding, and sustainable mechanism.”
Now, PumpSwap has not only successfully redefined the market landscape of Solana DEX but has also injected new momentum into the DeFi and meme coin ecosystems. With steady growth in users and trading volume, the ability to achieve the ultimate goal of attracting the mainstream market has become one of the closely watched events in the crypto community.
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