Pump.fun introduces PumpSwap to improve memecoin trading on Solana, potentially replacing Raydium as the primary venue.
Features of PumpSwap
PumpSwap operates similarly to Raydium V4 and Uniswap V2, providing a seamless trading environment. According to Pump.fun, migrations now happen instantly and for free, alleviating user complexity.
Heightened Competition
The launch of PumpSwap follows Raydium’s announcement of its own memecoin launchpad, LaunchLab, transforming partners into competitors. Pump.fun plans to introduce a popular feature from GoFundMeme, revenue sharing with memecoin creators. "If it succeeds, millions of dollars will be directed towards community alignment and higher quality launches," according to Pump.fun.
Declining Memecoin Activity
Memecoin activity has significantly decreased since January, affecting Pump.fun’s average daily fee revenue. In 2024, Solana’s TVL soared due to memecoin growth, with Raydium being among the biggest beneficiaries of increased trading volumes.
PumpSwap marks a significant shift in Solana's DeFi ecosystem, intensifying the competition for dominance in memecoin trading.
