The new decentralized exchange PumpSwap from Pump.fun has caught attention with its significant trading volume of $1.2 billion within just a week.
Rapid Growth of PumpSwap
According to Dune Analytics, PumpSwap generated $1.2 billion in trading volume in its first week. More than $500 million of that volume was achieved in the last 24 hours. The DEX commenced operations on March 20 and has already recorded 12.58 million swaps from over 401,000 active traders.
Features and Benefits of PumpSwap
PumpSwap enables token creators on Pump.fun to move their tokens to DEX immediately after completing the bonding curve, avoiding migration fees. The protocol also generates revenue for creators. Total protocol fees have reached $2.4 million, with $600,000 paid out to liquidity providers. However, 65.22% of trades are less than $10, indicating low confidence from large investors.
Competition with Raydium
The increasing transaction volume and the influx of unique addresses have positioned PumpSwap among the top five DEXes on Solana, yet Raydium retains leadership with $2.53 billion in volume. Amidst rising competition, Solana's performance is positive: SOL's price increased by 2% in the last 24 hours.
PumpSwap is rapidly gaining popularity due to its innovative token creation solutions, but increasing competition among DEXes may foster further development of the entire ecosystem.
