After much anticipation, Pump.fun recently unveiled its own Automated Market Maker (AMM), Pumpswap, significantly altering its ecosystem by eliminating its dependency on Raydium.
This transition marks a pivotal moment for Pump.fun, providing direct integration for tokens that successfully pass the bonding curve. Users can now effortlessly trade these tokens directly on Pumpswap, enhancing the platform’s usability and independence.
One of the standout changes accompanying this launch is the fee structure. Previously, users had to pay a substantial fee of 6 $SOL to migrate tokens; now, Pumpswap has switched to charging 0.25% fee per trade. Given that top meme-coins can often reach billions of dollars in trading volume, this new fee structure could significantly boost Pump.fun's overall revenue potential.
This shift not only significantly reduces user costs but also incentivizes token creators to actively participate, knowing that future plans by Pump.fun include sharing a portion of these fees directly with them. See our previous report for more information.
Early Performance Metrics
Pumpswap officially launched on March 20, and within just four days, it has demonstrated impressive momentum. Based on Flipside data, the platform quickly amassed over $253 million in trading volume, underscoring significant community interest.
Most notably, the past 24 hours witnessed exponential growth, with hourly trading volume peaking at a record-breaking $15.8 million. Consequently, total trading volume surged from approximately $113 million to over $253 million—a substantial increase of more than 124%.
Interestingly, a closer look at the distribution of these trades provides valuable insights into user behavior. Approximately 63.8% of all trades had values under $10, while an additional 22.5% ranged between $10 and $100. This indicates that 86.3% of trades were relatively small, suggesting that a significant portion of users were primarily testing the waters or positioning themselves strategically for potential airdrops from Pump.fun.
User Engagement and Growth
In terms of user growth, Pumpswap has seen robust adoption, with over 2.1 million unique wallets participating in trading activities since its launch. Collectively, these wallets executed more than 4.8 million trades.
Peak hourly activity highlights the platform's scalability, with 245.6 thousand trades conducted by 185.8 thousand wallets within a single hour.
The platform has also attracted a large influx of new wallets, with Pumpswap welcoming over 174.2 thousand new wallets in just one hour at its peak.
However, these wallets do not necessarily represent genuine new user engagement. Many memecoin creators utilize bot services that generate numerous new wallets, executing multiple small trades to artificially boost trading volume and attract attention to their tokens.
This activity further explains the relatively low value of most trades; over 96.1% of wallets made trades valued under $100, and only about 25,835 wallets executed trades worth more than $1,000.
This disparity suggests that while Pumpswap is generating considerable interest, it has yet to secure significant trust from larger-scale traders and investors.
Token Graduation Success
The Pumpswap graduation mechanism has also shown promise. Tokens that successfully meet the bonding curve criteria are automatically transitioned onto the Pumpswap platform.
Since its launch, 535 tokens have graduated, with a notable acceleration of 226 tokens graduating in the past 24 hours alone. This translates to an average graduation rate of about 6 tokens per hour.
Revenue and Sustainability
With Pumpswap’s launch, Pump.fun has transitioned its revenue model from a flat migration fee to a percentage-based transaction fee. Of the 0.25% fee charged per trade, 0.2% is allocated to liquidity providers, while 0.05% is reserved for the protocol itself. Pump.fun has indicated future plans to share a portion of revenue with token creators, which may alter this allocation.
To date, Pumpswap has generated approximately $126,600 in revenue from its 0.05% protocol fee. This income is expected to grow alongside increasing trading volume, although it remains uncertain whether Pumpswap can sustain this momentum after initial excitement wanes.
Looking Ahead
Pumpswap’s strong early performance demonstrates clear market interest and potential. However, it faces the critical challenge of transitioning initial curiosity into sustained, meaningful engagement.
User trust, especially among larger-scale traders, remains an essential hurdle. Maintaining transparency, security, and continual platform improvement will be crucial factors determining Pumpswap’s long-term success.
As Pumpswap moves forward, the critical question remains: Can Pump.fun replicate—or even exceed—its initial growth trajectory? Only time will reveal the true potential and staying power of Pumpswap as a key player in the AMM space.
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