PumpSwap is already the 2nd-largest AMM on Solana

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Last week, pump.fun completed Solana’s most consequential DEX launch in some time when it unveiled PumpSwap, an automated market maker for pump.fun token migrations.

Today, pump.fun passed Whirlpool to become the second-largest Solana AMM by volume, according to a Dune dashboard. Raydium — which used to be pump.fun’s AMM of choice — still leads the category with 50% market share compared to PumpSwap’s 18%, but the brand new AMM’s growth is noteworthy nonetheless.

Over the past 24 hours, PumpSwap’s largest liquidity pool by volume contains tokens with the tickers DOGEMOON and ballscoin, according to the dashboard.

PumpSwap is supposed to offer some benefits compared to pump.fun’s previous Raydium arrangement. For starters, SOL liquidity is no longer removed from a pump.fun token that completes its bonding curve. Pump.fun will instead drive revenue from transaction fees, the startup’s anonymous co-founder Alon said today on the Bankless podcast. 

Pump.fun has also said that token creator revenue sharing is coming soon to PumpSwap. 

Last week, Raydium told Blockworks that it’s launching its own memecoin launchpad called LaunchLab. Raydium is weathering the loss of pump.fun okay so far, and pump.fun memecoin volume has actually increased on the platform over the past week, per Blockworks Research. In the longer term, Raydium will need to find trading volume elsewhere as pump.fun volume moves exclusively to PumpSwap.

Unsurprisingly, the most popular pools on pump.fun’s AMM all contain memecoins. It also seems like some of the false volume accusations users have historically lobbed at Raydium may also apply to pump.fun. The aforementioned ballscoin and DOGEMOON have marginal market caps — and if the dashboard data is correct, then the volume is likely inorganic.

A Telegram channel with 28,000 monthly users offering a “Solana Volume Booster” announced that it had begun supporting PumpSwap, and it was offering a special deal: 10% off artificial volume boosts on the AMM.

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