With BNB Chain taking over, what are the chances of Pump.fun making a comeback with PumpSwap?

Original | Odaily Planet Daily ( @OdailyChina )

Author | Dingdang ( @XiaMiPP )

PumpSwap is here: A new battle for Solana DEX

On March 20, 2025, the Meme coin Launchpad platform Pump.fun announced the launch of PumpSwap, a decentralized token exchange service platform, and officially launched it on March 21. In direct confrontation with automated market makers (AMMs) such as Raydium in the Solana ecosystem, PumpSwap is positioned as the core infrastructure for permissionless trading of all tokens on Solana. This transformation not only expands the ecological boundaries of Pump.fun, but is also likely to reshape the competitive landscape of Solana DeFi. At a time when the Meme coin craze is fading and platform revenue and user activity are both declining, is PumpSwap a life-saving straw or a new adventure?

Pump.fun鈥檚 Dilemma: From Peak to Valley

Since its launch in January 2024, Pump.fun has quickly become the leader of the Meme coin craze with a token creation fee as low as 0.02 SOL and Solanas high efficiency. As of March 2025, the platform has incubated more than 1.5 million tokens and was once known as the Solana Meme Coin Cradle. However, the glory is a thing of the past.

According to DefiLlama statistics, Pump.funs protocol revenue on March 21, 2025 was only US$889,000, a drop of more than 94% from the peak of US$15.38 million on January 25, and has fallen back to the low level before September 2024.

Even more worrying is the continued low graduation rate of tokens (the decline of the Golden Dog effect) . In the Pump.fun ecosystem, graduation refers to the transition of tokens from the incubation stage to the fully tradable state of Solana DEX, which usually requires specific liquidity and trading volume requirements. Dune Analytics data shows that since February 17, Pump.funs graduation rate has been below 1% for four consecutive weeks, far below the historical high of 1.67% in November 2023. At that time, the platform created 323,000 tokens in a week, and about 5,400 successfully entered the open market. Today, the number of tokens graduating each week has dropped to about 1,500, and the number of new tokens completing the joint curve has also dropped sharply from nearly 1,200 on January 23-24 to about 200 on February 26, a drop of more than 80%.

The main reason behind this decline is the decline of the Meme coin craze, and the BNB Chain Meme coin carnival further attacked Pump.fun. In early 2025, platforms such as Four.Meme on BNB Chain emerged, attracting a large number of Meme coin projects and speculators with their low gas fees and large user base. X user @DeFiPulse (March 15) pointed out:

BNB Chains Meme coin transaction volume surged 150% in February, diverting Solanas traffic and causing Pump.funs user activity to drop by more than 60%.

Lookonchain monitoring on March 18 showed:

In the past 24 hours, six tokens created on Four.Meme have a market cap of over $1 million, while only one token on Pump.fun has a market cap of over $1 million.

In addition, the 2024 attack (loss of $2 million) and frequent scams (such as the collapse of LIBRA) have put Pump.fun in a double crisis of trust and market, and it urgently needs a new growth engine.

PumpSwap鈥檚 Innovation: From Low Threshold to New Ecosystem

In the face of the current predicament, the launch of PumpSwap is seen as a strategic counterattack by Pump.fun. Its products not only continue the low-threshold gene of the platform, but also try to reshape its role in the Solana ecosystem through a series of innovative functions and technological upgrades.

First of all, the core features of PumpSwap are eye-catching. It reduces the cost of migrating tokens from Pump.fun to the trading environment from the original 6 SOL to zero, greatly reducing the startup cost of the project . At the same time, popular tokens no longer need to graduate to Raydium, but directly build trading pairs in PumpSwaps internal liquidity pool to achieve seamless connection from issuance to trading . This process also has the feature of instant migration – tokens can be traded after completing the binding curve, which greatly improves efficiency compared to the previous waiting time of several minutes or even hours.

More importantly, PumpSwap has introduced a revenue sharing mechanism (although it has not yet been launched). According to the plan, a fee of 0.25% will be charged for each transaction, of which 0.20% will be allocated to liquidity providers and 0.05% will belong to the protocol. In the future, part of the revenue will be returned to the token creator. This design not only incentivizes project participation, but also opens up new revenue channels for Pump.fun. In addition, PumpSwap supports multiple token types, including Meme coins and non-Meme coins (such as PENGU, APT), and allows users to create liquidity pools for free, further lowering the threshold for participation.

On the technical level , PumpSwap adopts the Constant Product AMM model, similar to Uniswap V2 and Raydium V4, combined with Solanas high throughput and low latency characteristics to ensure transaction stability and efficiency.

In terms of security , Pump.fun has learned from the 2024 attack. PumpSwap has passed 9 audits by multiple institutions including Pashov Group and OtterSec, and plans to cooperate with Cantina.xyz to hold a security competition with a $2 million bounty to discover potential vulnerabilities. Its code will also be open source to enhance community trust.

PumpSwap鈥檚 Double Impact: Saving Pump.fun from Crisis and Shaking the Solana DEX Landscape

The significance of the launch of PumpSwap to Pump.fun is self-evident. It is both a tactical adjustment to cope with the current difficulties and a strategic layout towards long-term development.

For Pump.fun, PumpSwap first means the construction of an ecological closed loop. The full-chain service from token issuance to trading not only reduces the dependence on external DEXs such as Raydium, but also improves user experience and platform stickiness. The current daily protocol revenue of $889,000 shows that Pump.fun is in urgent need of new growth points. PumpSwaps 0.25% transaction fee and future creator revenue sharing mechanism are expected to make up for the decline in revenue through the growth of trading volume, and even push it back to its peak profitability level.

More importantly, PumpSwap may reverse the decline of Pump.fun. The current situation of graduation rate below 1% and the number of new tokens falling by more than 80% reflects users pessimistic expectations for the platforms prospects. PumpSwaps zero migration fee and instant trading function may stimulate more project parties to return, attract liquidity providers and traders, and thus increase the success rate and market activity of tokens. In the competition with Four.Meme, PumpSwaps low cost and high efficiency also provide it with a differentiated advantage. If it can restore community confidence, Pump.fun is expected to move from wandering at the bottom to bottoming out.

For the Solana ecosystem, PumpSwaps impact is equally far-reaching. It further consolidates Solanas position as the trading center of Meme coins. By lowering barriers to entry and providing internal liquidity, PumpSwap is expected to attract more token projects and capital inflows, driving a rebound in on-chain trading volume. However, this also poses a challenge to the existing DEX landscape. Raydiums token RAY fell 7.6% within five minutes of the PumpSwap news release, and fell nearly 9% on the day, showing the markets concerns about its competitive pressure. In the future, Raydium may need to respond by reducing fees or launching new features (such as LaunchLab), while other small and medium-sized DEXs may face the risk of having their living space squeezed.

In the long run, the success of PumpSwap will depend on whether it can ignite new enthusiasm in the Meme coin bear market. In the short term, its low threshold feature may stimulate trading activities, but if the overall popularity of Meme coins cannot recover, the effect may be limited. The market will give the answer to all this.

This article is sourced from the internet: With BNB Chain taking over, what are the chances of Pump.fun making a comeback with PumpSwap?