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The Coin Rise 2025-03-21 11:29:32

Pump.fun Launches PumpSwap DEX, Challenging Raydium’s Grip

Pump.fun has launched its own decentralized exchange (DEX), dubbed PumpSwap, with the goal of becoming the go-to trading venue for Solana memecoins. The new DEX aims to displace Raydium, which currently dominates Solana’s memecoin trading activity. Starting on March 20, memecoins that successfully bootstrap liquidity, or “bond,” on Pump.fun can automatically migrate to PumpSwap. Previously, bonded tokens were funneled to Raydium, which benefited from the surge in memecoin trading over the past year. However, Pump.fun described the migration process as a “major point of friction” that slowed momentum and introduced unnecessary complexity for new traders. With PumpSwap, migrations now happen instantly and without fees, creating what Pump.fun calls the “most frictionless environment” for trading. The new DEX reportedly operates similarly to Raydium V4 and Uniswap V2, offering familiar functionality while providing a more streamlined experience for memecoin enthusiasts. Raydium Prepares to Launch Its Own Platform The PumpSwap debut comes just days after Raydium revealed its own plans to launch a competing memecoin launchpad called LaunchLab. The move signals a shift from collaboration to direct competition between the two platforms, marking a battle for dominance in Solana’s memecoin ecosystem. Alon, a Pump.fun co-founder, welcomed the rivalry, telling Cointelegraph that competition ultimately benefits users. “We welcome competition because users win at the end of the day,” Alon said. To gain an edge, PumpSwap plans to introduce a revenue-sharing model inspired by rival GoFundMeme, another emerging protocol. Soon, a portion of PumpSwap’s protocol revenue will be shared with memecoin creators, aligning their incentives with their communities and promoting higher-quality token launches. Solana Memecoin Frenzy Slows Despite the platform’s expansion, Pump.fun is navigating a cooler memecoin market . Successful token launches on Pump.fun have plunged by 80% from their January 2024 highs, following a string of memecoin-related scandals that eroded retail trader confidence. Pump.fun’s daily fee revenue has also fallen significantly—from over $4 million in January to around $1 million by mid-March, according to DeFiLlama. Nonetheless, memecoins have been instrumental in driving Solana’s DeFi growth . The chain’s total value locked (TVL) skyrocketed from $1.4 billion to over $9 billion in 2024, with Raydium’s daily volumes soaring from $245 million to more than $2 billion, highlighting the memecoin sector’s massive impact . The post Pump.fun Launches PumpSwap DEX, Challenging Raydium’s Grip appeared first on TheCoinrise.com .

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