Pump.fun has officially launched PumpSwap, positioning itself as a formidable contender against Raydium while aiming to revitalize activity in the Solana ecosystem. But can this newcomer reignite interest in Solana, which has been losing momentum?
The new raising name – PumpSwap
Recently, on March 20, 2025, the Solana-based meme coin platform Pump.fun launched a decentralized exchange (DEX) called PumpSwap, operating with a mechanism similar to Raydium V4.
PumpSwap stands out with unique features such as zero migration fees, fast transactions, low trading costs, and a creator revenue-sharing mechanism. With these advantages, PumpSwap is positioning itself as a strong contender, aiming to challenge Raydium’s dominance in the Solana DEX ecosystem.
Right after its launch, PumpSwap achieved impressive numbers, surpassing $1,000M in cumulative volume and attracting over 385K total traders. On March 24, its protocol fee hit $212K, marking its highest point since its launch.
Source: Dune Analytics
However, PumpSwap’s market share among Solana-based DEXs remains modest, peaking at only 19.2%. Meanwhile, its direct competitor, Raydium, maintains a dominant position with a market share nearly three times higher at 60.7%.
Source: Dune Analytics
Bullish signal for Solana?
In Q4 2024, Solana’s network revenue surged by 261%, primarily fueled by the memecoin boom. This growth highlights both the strong appeal of meme coins to users and their ability to drive network revenue. Platforms like pump.fun played a key role in amplifying the memecoin frenzy on Solana. By simplifying the creation and launch process, Pump.fun attracted a massive influx of users.
Source: Token Terminal
According to Dune Analytics, over 1.69 million new meme coins were created in January 2025 alone, reflecting the explosive growth of this trend on Solana.
However, recent political controversies surrounding meme coins LIBRA and MELANIA have shaken investor confidence, causing many supporters to abandon these projects.
Recently, pump.fun and Raydium intensified their competition, implementing significant changes that have the potential to revive the waning interest in the Solana ecosystem. But it seems challenging for Solana’s builders!
As per Binance Research’s latest report, nearly $500M in market capitalization has flowed out of Solana in early 2025, reflecting waning investor interest as the memecoin hype fades. Despite Pump.fun’s strong activity, its market share remains too weak to lift the entire Solana ecosystem, especially amid the overall bearish market conditions.
Source: Binance Research
Additionally, Solana ETF applications from VanEck and 21Shares have been submitted to the SEC, but prospects remain bleak. Meanwhile, investors are mainly focusing on Bitcoin and Ethereum ETFs, showing little interest in Solana ETFs.
The memecoin season has also overshadowed other promising projects on Solana, leading to a severe dispersion of attention and capital within the ecosystem.
If this trend continues, Solana risks losing long-term growth momentum, as retail investors increasingly perceive it as nothing more than a “crypto casino.” Therefore, the Solana ecosystem needs new momentum, a new wave that can be sustained in the long term for investors to bullish.
Learn more: Solana Come Back With Raydium’s Newest Move?
