Pump.fun’s PumpSwap hits $1.2 billion in weekly volume with surge driven by small transactions

PumpSwap, the decentralized exchange (DEX) from memecoin deployer Pump.fun has reached $1.2 billion in trading volume in just one week. According to Dune Analytics data, most of that volume has come within the last 24 hours, during which time the protocol generated over $500 million in volume.

Over the last 24 hours, the massive trading volume has continued a positive trend for the newly launched DEX, which started operating on March 20. Since its launch, PumpSwap has recorded 12.58 million total swaps from over 401,000 active traders.

With PumpSwap, people who launch tokens on Pump.fun can move their tokens directly to the DEX as soon as they complete the bonding curve. A bonding curve is a mathematical model that determines a token’s price based on its supply, with the price increasing as more tokens are bought.

The launch of PumpSwap finally allows memecoin creators to migrate to DEX without paying the 6 SOL migration fee and with plans to enable creators’ revenue sharing later on. Unsurprisingly, the increase in DEX trading volume also means revenue is rising.

Per Dune Analytics, the total protocol fees generated so far are $2.4 million, while liquidity providers have received over $600,000 in fees. PumpSwap charges 0.25% in fees, of which 0.2% is for the liquidity providers and 0.005% is for the protocol.

Despite the relatively positive performance, an in-depth analysis of its performance metrics shows that most of the protocol’s trades are small transactions. According to Flipside data, 65.22% of its trades, when last updated, were for transactions less than $10, while 21.40% were between $10 and $100.

This shows that most of its users are still testing out its abilities and do not trust it with their big transactions yet. It could also signify that they want to engage the protocol with the hope of a future airdrop. Nevertheless, many people have already tried out the network, with a total number of unique users now at 3.57 million, with 823 tokens graduated

Is PumpSwap coming for Raydium throne?

Meanwhile, the rising transaction volume and massive influx of unique addresses interacting with the DEX have led many observers to note that it could challenge Raydium. Raydium is Solana’s leading DEX, with $2.53 billion in volume over the past week, according to Defillama.

The protocol also accounts for 27.94% of the DEX volume on Solan, while PumpSwap comes fifth, behind Orca, Meteora, and Linfinity. However, Raydium is now sitting content while watching PumpSwap rise. The DEX also recently unveiled LaunchLab, its own token issuance platform that seems to target Pump.fun.

While Pump.fun has established itself as the memecoin deployer, Raydium is positioning LaunchLab as the platform for issuing all kinds of projects and providing permissionless and neutral infrastructure for Solana-based projects to launch their tokens.

So far, PumpSwap’s arrival has had little impact on Raydium, as the protocol continues to command significant volume. Its token, RAY, is also performing well. According to CoinMarketCap, RAY has been up 22% in the last seven days and has seen a gain of around 1% in the last 24 hours.

The biggest beneficiary of this competition in the Solana ecosystem appears to be the network itself. SOL is now on a rebound, rising 2% in the last 24 hours and 17% in the past seven days.

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