Forward the Original Title‘PumpSwap vs. Solana Meme Standoff: What Are the Odds?’

In 2024, Pump.fun rapidly rose to prominence by leveraging its innovative token creation model, becoming a key driver of the Meme token craze within the Solana ecosystem. However, as the Meme token market within Solana experienced its ups and downs, Pump.fun encountered multiple challenges: the established dominance of mature DEXs like Raydium and Jupiter in the trading space, the gradual decline in user enthusiasm for Meme tokens, and the competitive pressure from the BSC network. These factors slowed Pump.fun’s growth momentum, prompting the team to reassess their development strategy.

In the early hours of March 21, 2025, Pump.fun officially announced the launch of its DEX—PumpSwap—marking the platform’s transformation from a single-purpose token launch platform to a comprehensive platform integrating both token launches and trading. Will the launch of PumpSwap inject new vitality into Pump.fun and allow it to reclaim its former glory in the Meme token space?

What Are PumpSwap’s Features?

PumpSwap adopts a constant product AMM model similar to Raydium V4 and Uniswap V2. The biggest innovation of PumpSwap is the elimination of the intermediate step where tokens were previously migrated from Pump.fun to external DEXs like Raydium. Now, all tokens that complete the bonding curve phase will automatically create liquidity pools and initiate trading directly on PumpSwap.

PumpSwap’s core features include:

1. Seamless token migration: From now on, all tokens that complete their bonding curve phase will be migrated directly to PumpSwap, eliminating the previous reliance on Raydium. Moreover, the migration fee (previously 6 SOL) is no longer required. This change removes the economic barriers for token creators to enter the trading market.

2. Free Liquidity Pool Creation and Provision: Users can now create liquidity pools at no cost and contribute liquidity to existing pools.

3. Wide Token Support: PumpSwap not only supports all Meme tokens graduating from Pump.fun but also adds support for multiple popular project tokens, including PENGU, APT, TRON, cbBTC, USDe (Ethena), FXS, fxUSD, SEI, JUP, ZRO, MNDE, MPLX, DRIFT, PLUME, RETARDIO, SAVE, SCR, OX, W, and more. Notably, APT (Aptos) and TRON will be integrated into the Solana ecosystem for the first time through PumpSwap, demonstrating the platform’s ambition to expand its compatibility.

4. Fees: PumpSwap charges a 0.25% fee on each transaction, with 0.20% allocated to liquidity providers and 0.05% retained by the protocol.

5. Creator Revenue Sharing: One of PumpSwap’s standout features is the “Creator Revenue Sharing System,” which allocates a portion of the protocol’s revenue to token creators, encouraging higher-quality Meme projects. The exact fee distribution details will be refined after this feature goes live.

In terms of security, PumpSwap has undergone nine security audits by Pashovgroup, OtterSec, bl0ckpain, and Sec3, with a commitment to open-source its code in the future to enhance community trust. Currently, Pump.fun is collaborating with Cantina, a Web3 security solutions marketplace, to conduct a PumpSwap security audit competition, with total rewards amounting to $2.01 million USDC.

What are Pump.fun’s Advantages and Challenges?

Pump.fun believes that the token migration process after graduating from its platform has been a major point of friction, slowing down momentum and introducing unnecessary complexity for new users.

The launch of PumpSwap attempts to solve long-standing pain points and capture new market opportunities. First, the new policy of free migration and liquidity pool creation significantly lowers the entry barrier, especially for small-scale investors and token creators, making the platform more attractive.

In the past, tokens had to be manually migrated to Raydium after graduating from Pump.fun, a process that was not only time-consuming but also risked missing the brief hype windows of Meme tokens. By integrating native trading functionality, PumpSwap allows users to enter the market immediately and capture opportunities in real time.

By sharing the protocol revenue with token creators, the upcoming creator sharing mechanism is expected to encourage more developers to invest time and creativity to create more attractive Meme projects, thus improving the overall quality and activity of the ecosystem.

However, PumpSwap’s success heavily depends on the sustained growth and prosperity of the Meme token market within the Solana ecosystem. The LIBRA token crash in February 2025 highlighted the inherent fragility of this market. If the market cools down further, PumpSwap’s trading volume and revenue could face severe challenges.

Moreover, PumpSwap is entering a competitive space where established DEXs such as Raydium and Jupiter have already secured solid positions. As a new DEX player, PumpSwap must quickly prove its value by offering superior functionality and an enhanced user experience.

On the other hand, PumpSwap’s low threshold may further amplify risks such as “soft rugs”, which may lead to the further proliferation of inferior tokens and harm the interests of ordinary investors. In a sluggish market, the proliferation of subpar tokens increases the likelihood of further damaging user confidence, posing a significant threat to the platform’s long-term growth.

Summary

The launch of PumpSwap is Pump.fun’s proactive response to market changes, and is also a key step in its move from a single launch pad to a comprehensive Meme trading ecosystem. By eliminating transaction friction, improving efficiency, and motivating creators, PumpSwap demonstrates mature design ideas at the technical level. The platform extends the token lifecycle beyond the launch phase to include trading, creating a “launch-trade-incentivize” closed-loop ecosystem.

At the same time, Raydium, the most liquid and highest-volume DEX in the Solana ecosystem, has historically benefited from the migration of Meme tokens from Pump.fun. However, with the launch of PumpSwap, this traffic flow has been directly cut off, keeping Meme token trading within the Pump.fun ecosystem and causing Raydium’s market share to shrink. In response, Raydium is planning to launch LaunchLab to compete directly with Pump.fun.

In addition, the Solana ecosystem has lacked breakout projects for an extended period, leading to a noticeable decline in user enthusiasm for Meme tokens. This cooling sentiment casts a shadow over PumpSwap’s future prospects. While the creator incentive system has potential, its ability to reverse this trend quickly remains uncertain—especially given the difficulty of generating viral hits in the short term.

Looking ahead, if PumpSwap can produce a series of viral Meme tokens and break through the stagnant market, it could secure a solid position in the Solana ecosystem. However, if it fails to reignite market enthusiasm, PumpSwap risks becoming yet another attempt that fades away after the initial hype—making it difficult to recapture the glory that Pump.fun once enjoyed.

Disclaimer:

1. This article is reprinted from [ForesightNews]. Forward the Original Title‘PumpSwap vs. Solana Meme Standoff: What Are the Odds?’. The copyright belongs to the original author [KarenZ, Foresight News]. If you have any objections to the reprint, please contact the Gate Learn team, which will handle it as soon as possible according to relevant procedures.

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