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- PumpSwap hit over $1B in trading volume during its debut week, gaining attention across the Solana ecosystem.
- The platform charges 0.25% per trade, with incentives for liquidity providers and zero pool creation fees.
Who would have thought that in just a week, a new platform could disrupt the DEX world power map on Solana? PumpSwap, a new DEX created by PumpFun, immediately skyrocketed with a trading volume of over $1 billion in its first week.
Even more astonishing, this platform was able to rake in over $1 million in daily fees. This is no small number—even for an ecosystem as active as Solana.
PumpFun’s new DEX ‘PumpSwap’ surpassed $1B in volume in its debut week!
Also generated $1M in daily fees. pic.twitter.com/vdCD3kOerd
— Pluid (@tryPluid) March 25, 2025
PumpFun Redirects Memecoin Migration to PumpSwap
Since March 20, PumpFun has started implementing an automatic migration system for memecoins that have managed to gather liquidity. Previously, these tokens were directly channeled to Raydium, the most popular DEX on Solana—at least until a few days ago.
Now, instead of migrating to Raydium, these tokens are moving directly to PumpSwap. This is like our favorite restaurant suddenly closing and being replaced by a new cafe that is actually faster, without queues, and cheaper.
PumpFun also stated that PumpSwap “works similarly to Raydium V4 & Uniswap V2” but is designed to provide the smoothest trading experience possible. This means that traders can move more freely without being burdened with migration fees like before—which used to be as high as 6 SOL.
New AMM Gains Ground With Meme Tokens
CNF previously reported that, on March 19, Raydium launched LaunchLab, a launchpad for memecoins with a flexible token launch system and customizable pricing model. This move is seen as a direct attempt to compete with the new ecosystem that PumpFun has built through PumpSwap.
Despite only just launching, PumpSwap has managed to take second place as the largest automated market maker (AMM) on the Solana network. Imagine, that’s only been a matter of days.
In fact, in the last 24 hours, the largest liquidity pool on PumpSwap was filled by tokens with quite funny names: DOGEMOON and ballscoin. It may sound ridiculous, but the trading volume is no joke.
Lower Fees and Open Liquidity Attract Traders
One of the reasons PumpSwap has become so popular so quickly is its user-friendly fee structure. Each trade is charged a 0.25% fee. Of that, 0.20% goes to liquidity providers, while 0.05% goes to the protocol. It’s a kind of “revenue sharing” system that makes sense, especially for traders who frequently open positions.
Furthermore, PumpSwap also allows anyone to create and add liquidity to new pools without incurring additional fees. This opens up a huge opportunity for new token creators and smaller communities that may have previously found it difficult to break into larger platforms.
The question now is, can Raydium still maintain its throne? Or will we see the memecoin ecosystem on Solana shift completely to PumpSwap?
