The decentralized exchange PumpSwap has reached $1.52 billion in trading volume just a week after its launch, showcasing significant interest in the platform.
Trading Volume and Fee Structure Details
According to Dune Analytics, PumpSwap has handled more than 14 million swaps, bringing in a total of $3.03 million in fees. The current 0.25% trading fee structure allocates 0.20% to liquidity providers and 0.05% to the protocol. However, these rates will change with the implementation of Creator Revenue Sharing.
Transaction Distribution and Platform Activity
Despite the high trading volume, the majority of transactions on PumpSwap are small. Flipside data shows that 21.40% of trades are between $10 and $100, while 65.22% involve amounts under $10. There are currently 441,000 active wallets on the platform. As of March 25, PumpSwap held a 19% market share, with Raydium leading at 45%.
Competition and the Future of Memecoins on Solana
Built on Solana, PumpSwap uses a constant product automated market maker model, similar to Raydium v4 and Uniswap v2. It has streamlined migrations by removing the prior 6 SOL fee. The platform supports trading beyond memecoins, listing tokens such as Pudgy Penguins and Aptos. Following PumpSwap, Raydium launched LaunchLab, a memecoin factory capable of dynamic token pricing adjustments.
PumpSwap has made a solid entry into the decentralized exchange market. Despite competition and growing interest in alternative Solana-based projects, the memecoin market remains dynamic.
