Pump.Fun launched its own decentralized exchange (Dex) called Pumpswap, which potentially moved Raydium as the main place of trading for Solana (Sol) Memecoins.
Beginning March 20, memecoins successful bootstrap liquidity, or “bond,” on pump.fun will move directly to pumpswap, pump.fun Says In an x post.
In the past, bonding pumps.fun tokens moved to Raydium, which emerged as Solana’s most popular dex, largely thanks to Memecoins’ trading activity.
According to Pump.Fun, Pumpswap is a “function similar to the Raydium V4 & Uniswap V2” and designed “to create the most -frictionless environment for trading coins.”
“(M) Igrations are a key point of friction – they slow down the momentum of a coin and introduce unnecessary complexity for new users,” said Pump.Fun.
“(N) OW, the transfer occurs immediately and free.”
Raydium’s trade volumes appeared in 2024, mainly due to memecoins. Source: Delete
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High competition
Launching will only come a few days after Raydium tipped plans to create Its own memecoin launchpad – Called launchlab – to compete directly with pump.fun.
Moving pump.fun and raydium from competitors partners stand to restore Solana’s decentralized ecosystem at a time when memecoin trading volumes have dropped dramatically from the highs of January.
“We invite the competition because users won at the end of the day,” said Alon, one of the co-founders of Pump.Fun at the cointelegraph on March 20.
Other upstart protocols – such as daos.fun, gofundmeme and pumpkin – are also striving for a portion of Solana’s Memecoin market.
Pumpswap plans to adopt one of the most popular features of gofundmeme rival – revenue sharing with memecoin creators.
Soon, “the percentage of protocol revenue will be shared with coin creators,” Pump.Fun said.
“(I) F It succeeds, millions of dollars go towards the creators of their communities and motivates the higher quality of launch.”
Pump.fun fees revenues have dropped dramatically from January highs. Source: Dune analytics
Denying memecoin activity
In Feb. Dropped by 80% from the highs of January After a series of memecoin -related scandals chilled by sentimental to retail businessmen.
As a result, the average daily income of the pump.fun refused from more than $ 4 million in January to more than $ 100,000 to mid-March, according to Data From Dune Analytics,
Memecoins drove a explosion in Solana in 2024, with a total chain amount locked (TVL) rising from around $ 1.4 billion to more than $ 9 billion that year, According to In Defillama.
Raydium is among the largest beneficiaries, with a sunny quantity as climbing from around $ 245 million to more than $ 2 billion over 2024, Defillama data Shut up.
In January, Raydium launched a leveraged perpetual futures trading platform on a bid to challenge incumbent Jupiter, another leading Solana defi protocol.
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