One week post-launch, PumpSwap records $1.5B in trading volume, despite minimal whale involvement

In just one week since its debut, Pump.fun's new decentralized exchange, PumpSwap, has amassed a trading volume of $1.52 billion.

According to Dune Analytics, PumpSwap DEX has processed over 14 million swaps, generating a total of $3.03 million in fees. The current fee structure for trading is set at 0.25%, with 0.20% going to liquidity providers and 0.05% to the protocol. However, this will be altered once Creator Revenue Sharing is put into effect.

Although PumpSwap has achieved a high trading volume, the majority of its transactions are relatively small. Data from Flipside reveals that 21.40% of trades range from $10 to $100, while 65.22% involve amounts less than $10. Presently, there are 441,000 active wallets on the platform. As of Mar. 25, PumpSwap accounted for 19% of the market share, while Raydium (RAY) remained the leader with 45%.

Constructed on the Solana (SOL) network, PumpSwap was launched on Mar. 20 and employs a constant product automated market maker (AMM) model, similar to Raydium v4 and Uniswap (UNI) v2. AMMs are decentralized exchanges that enable trading without intermediaries by utilizing liquidity pools instead of order books. All Pump.fun coins that have completed their bonding curve are now listed on PumpSwap.

To facilitate trading, PumpSwap has implemented instant migrations, thereby eliminating the previous 6 SOL migration fees. The platform also supports trading of tokens beyond memecoins, featuring tokens from Pudgy Penguins (PENGU), Aptos (APT), Tron (TRX), Jupiter (JUP), and LayerZero (ZRO), as well as wrapped assets like Coinbase Wrapped BTC (CBBTC), Ethena USDe (USDE), and Frax Finance’s frxUSD and FXS.

As the competition in the Solana memecoin space intensifies, Raydium recently unveiled LaunchLab, a memecoin production facility that offers token creation and launch features akin to Pump.fun.

LaunchLab enables projects to modify token pricing dynamically and also permits third-party interfaces to set custom fees, providing a range of user experiences. Unlike PumpSwap, the platform has not yet gained significant traction.