Raydium Dominates Solana DEX Volumes Despite PumpSwap Launch

When pump.fun first announced its foray into the DEX world with the PumpSwap AMM, commentators claimed the launch would be a death sentence for Raydium.

With one week of trading history now recorded onchain, it appears reports of Raydium’s death were greatly exaggerated. Despite PumpSwap’s impressive launch, Raydium maintains its position atop Solana’s DEX rankings.

Solana’s DEX wars are certainly becoming more competitive, but have traders overreacted to PumpSwap’s influence?

Raydium Market Share Unfazed by PumpSwap

Despite claims that PumpSwap’s arrival onchain signalled the end of Raydium, Solana’s biggest DEX maintains its firm grip on market dominance. With over one week of trading data to analyze, PumpSwap’s volume falls short of not only Raydium, but also fellow rivals Orca and Meteora.

According to Blockworks Research, PumpSwap on average accounted for 8.85% of daily trade volume on Solana DEXes between March 22-28. During the same time period, Raydium commanded 41.48% of average daily market share.

Adding more fuel to the fire, inaccurate data analysis has resulted in some rather outrageous claims. Social media commentators are reporting that PumpSwap is processing over $1B per day. 

Even typically reliable sources like DefiLlama appear to have miscalculated, suggesting that PumpSwap has witnessed over $3B in trading volume in the last 24 hours. For context, Blockworks data shows that Solana’s total onchain DEX volume is closer to around $2.9B per day across all exchanges.

Blockworks data analyst Dan Smith argues that many researchers are pricing the quote asset as $SOL, as opposed to USD, meaning reported volumes are dramatically higher than reality.

Memecoin Volume Share Trends Up

Amidst global economic uncertainty and a looming geopolitical trade war, crypto markets are languishing. However, Solana’s memecoin traders can’t seem to stay away from the trenches.

After hitting a YTD low of 27% in late February, Solana’s memecoin volume share has been in an upward for over a month.

Memecoin volume share on Solana has consistently made higher lows throughout March, and currently sits at 55%. While trading volumes have dropped significantly since January highs and market sentiment remains fearful, memecoins still play a critical role in Solana’s onchain economy.

$RAY Still Hurting Since PumpSwap Announcement

PumpSwap may have failed to dethrone Raydium as Solana’s biggest DEX so far, but markets appear to still be uncertain on $RAY’s future. Raydium’s native token suffered a devastating drawdown in anticipation of PumpSwap’s launch, dropping over 58% since rumors of the AMM surfaced.

Despite onchain data suggesting that Raydium still commands the bulk of Solana’s DEX market share, market confidence in $RAY is yet to return. However, this could change with the upcoming release of LaunchLab, Raydium’s answer to the original pump.fun token launch platform.

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