PUMP.FUN has launched its own distributed exchange (DEX) called Pumpswap and potentially replaced Raydium as a major trading location for Solana (SOL) Memecoins.
Starting March 20, PUMP.FUN’s liquidity successfully boot strap liquidity or “bond” notes will be migrated directly to pump sway.
Previously, Bonded pump.fun tokens were migrated to Raydium, which appeared as Solana’s most popular DEX thanks to Memecoins trading.
According to pump.fun, Pumpswap is “similar to Raydium V4 & Uniswap V2.”
PUMP.FUN said, “(M) immigration was a major friction point, slowing the momentum of coins and introducing unnecessary complexity to new users.
“(N) OW, this week occurs immediately and free.”
Raydium’s trading volume surged mainly by Memecoins in 2024. source: Displacement
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Competition has intensified
A few days have passed since Raydium planned to create its own Memecoin Launchpad (LaunchLab) to compete directly with the pump.
The transition from PUMP.FUN and Raydium to competitors stands on reconstructing Solana’s Distributed Finance (Defi) ecosystem when Memecoin trading volume fell dramatic from January to the highest in January.
One of fump.fun’s co -founders, Alon, told Cointelegraph on March 20, “We welcome competition because the user wins at the end of the day.
Other new protocols such as Daos.fun, Gofundmeme and Pumpkin are competing for some of Solana’s Memecoin Market.
PUMPSWAP plans to adopt profit sharing with Memecoin producer, the most popular feature of rival Gofundmemy.
Pump.fun said, “The proportion of protocol revenue will be shared with coin producers.”
“((i) If F succeeds, millions of dollars will harmonize the creators with the community and encourage high quality launches.”
Pump.fun’s commission income has dropped sharply from the best in January. source: Sand Hill Analysis
Reduced Memecoin activity
On February 27, COINTELEGRAPH reported that successful memo launches in the pump decreased 80% in the highest in January.
As a result, according to Dune Analytics’ data, Pump.fun’s average daily commission income has been reduced from $ 4 million in January to $ 100,000 in mid -March.
According to Defillama, Memecoins led to explosive growth in Solana in 2024, and in that year, the chain’s total value lock (tvL) increased by more than $ 1.4 billion from about $ 1.4 billion in that year.
Raydium was one of the biggest beneficiaries, and in 2024, the daily amount surged more than $ 245 million to more than $ 2 billion, Defillama data said.
In January, Raydium started the leverage permanent futures trading platform to challenge another best Solana Defi protocol.
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