15 hours ago
Pump.fun has launched its ain decentralized speech (DEX) called PumpSwap, perchance displacing Raydium arsenic the superior trading venue for Solana (SOL) memecoins.
Starting connected March 20, memecoins that successfully bootstrap liquidity, oregon “bond,” connected Pump.fun volition migrate straight to PumpSwap, Pump.fun said successful an X post.
Previously, bonded Pump.fun tokens migrated to Raydium, which emerged arsenic Solana’s astir fashionable DEX mostly acknowledgment to memecoins trading activity.
According to Pump.fun, PumpSwap “functions likewise to Raydium V4 & Uniswap V2” and is designed “to make the astir frictionless situation for trading coins.”
“[M]igrations were a large constituent of friction - they dilatory a coin’s momentum and present needless complexity for caller users,” Pump.fun said.
“[N]ow, migrations hap instantly and for free.”
Raydium’s trading volumes surged successful 2024, mostly owed to memecoins. Source: DeFiLlama
Related: Solana shorts spike amid memecoin scandals
Heightened competition
The motorboat comes conscionable a fewer days aft Raydium tipped plans to make its ain memecoin launchpad — called LaunchLab — to straight vie with Pump.fun.
Pump.fun and Raydium’s modulation from partners to competitors stands to reshape Solana’s decentralized concern (DeFi) ecosystem astatine a clip erstwhile memecoin trading volumes are down dramatically from January highs.
“We invited contention due to the fact that users triumph astatine the extremity of the day,” Alon, 1 of Pump.fun’s co-founders told Cointelegraph connected March 20.
Other upstart protocols — specified arsenic Daos.fun, GoFundMeme and Pumpkin — are besides vying for a stock of Solana’s memecoin market.
PumpSwap plans to follow 1 of rival GoFundMeme’s astir fashionable features — gross sharing with memecoin creators.
Soon, “a percent of protocol gross volition beryllium shared with coin creators,” Pump.fun said.
“[I]f it succeeds, millions of dollars volition spell towards aligning creators with their communities and incentivizing higher prime launches.”
Pump.fun’s interest revenues are down sharply from January highs. Source: Dune Analytics
Declining memecoin activity
On Feb. 27, Cointelegraph reported that palmy memecoin launches connected Pump.fun were down immoderate 80% from January highs aft a bid of memecoin-related scandals cooled sentiment among retail traders.
As a result, Pump.fun’s mean regular interest gross declined from much than $4 cardinal successful January to conscionable implicit $100,000 arsenic of mid-March, according to data from Dune Analytics,
Memecoins drove explosive maturation connected Solana successful 2024, with the chain’s full worth locked (TVL) expanding from astir $1.4 cardinal to much than $9 cardinal that year, according to DefiLlama.
Raydium was among the biggest beneficiaries, with regular volumes soaring from astir $245 cardinal to much than $2 cardinal implicit the people of 2024, DefiLlama information shows.
In January, Raydium launched a leveraged perpetual futures trading level successful a bid to situation incumbent Jupiter, different apical Solana DeFi protocol.
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