Pump.fun’s new decentralized exchange, PumpSwap, has taken the crypto world by storm, achieving an impressive $1.52 billion in trading volume just one week after its official launch on March 20, 2025. Powered by the Solana blockchain, this innovative platform has quickly gained traction, demonstrating the increasing appetite for decentralized trading solutions.
According to data from Dune Analytics, PumpSwap has facilitated over 14 million swaps, generating a total of $3.03 million in fees. The platform operates on a competitive 0.25% trading fee structure, with 0.20% directed to liquidity providers and 0.05% allocated to the protocol itself. It is expected that this fee structure will evolve with the implementation of Creator Revenue Sharing in the near future.
Interestingly, despite the remarkable trading statistics, most transactions on PumpSwap are relatively small. Data from Flipside reveals that 65.22% of trades are under $10, while 21.40% range between $10 and $100. Currently, the platform boasts an active user base of 441,000 wallets, capturing a 19% market share in the decentralized exchange (DEX) sector of Solana, trailing behind Raydium, which holds a leading 45% market share.
Billed as a user-friendly alternative, PumpSwap leverages a constant product automated market maker model similar to that of Raydium v4 and Uniswap v2, allowing for seamless peer-to-peer trading without intermediaries. The platform distinguishes itself by eliminating previous migration fees of 6 SOL and broadening its trading horizons beyond memecoins. Users can now trade tokens from notable projects such as Pudgy Penguins, Aptos, Tron, Jupiter, and LayerZero, in addition to wrapped assets such as Coinbase Wrapped BTC and Frax Finance’s frxUSD.
As competition within the Solana memecoin landscape intensifies, platforms like Raydium are launching features to keep pace, such as LaunchLab, a token creation and launch initiative. Although LaunchLab offers dynamic token pricing adjustments and customizable fee experiences, it has yet to gain significant market traction compared to the rapid success of PumpSwap.
In conclusion, PumpSwap’s swift ascent in the DEX market signifies both the rising popularity of decentralized trading platforms and the pivotal role of innovative features in attracting users. The coming weeks will be crucial to see how this nascent exchange adapts and scales amidst a booming memecoin ecosystem.
