Solana’s Memecoin Landscape Shifts as Pump.fun Moves Toward Full Independence

Pump.fun, the leading memecoin launchpad on Solana, has officially launched its own decentralized exchange (DEX) called PumpSwap, marking a significant move toward self-sufficiency. This development ends its previous reliance on Raydium, which had served as the primary venue for trading memecoins launched via Pump.fun.

Introducing PumpSwap, Pump’s new native DEX

beginning NOW all coins that complete their bonding curve will migrate directly to PumpSwap

PumpSwap enables
– instant migrations
– 0 migration fees (down from 6 SOL)
– more liquidity
– creator revenue sharing (coming soon)

& more 👇 pic.twitter.com/T9BkmmaVVS

— pump.fun (@pumpdotfun) March 20, 2025

Starting March 20, all tokens that successfully “bond” or bootstrap liquidity on Pump.fun will automatically migrate to PumpSwap instead of Raydium. According to Pump.fun’s announcement on X, the new DEX is built to resemble Raydium v4 and Uniswap v2, offering a frictionless trading experience.

“Migrations were a major point of friction — they slowed a coin’s momentum and added needless complexity for new users,” Pump.fun said in a statement. “Now, migrations happen instantly and for free.”

A Response to Raydium’s LaunchPad Plans

PumpSwap’s release comes just days after Raydium unveiled LaunchLab, its own memecoin launchpad, signaling the start of direct competition between the two once-cooperative platforms.

This pivot could significantly reshape Solana’s DeFi ecosystem, especially as memecoin trading volumes have declined sharply since their January peak.

“We welcome competition because users win at the end of the day,” said Alon, co-founder of Pump.fun, in a March 20 interview with Cointelegraph.

New Features and Revenue Sharing for Creators

PumpSwap introduces several new features designed to attract both creators and traders, including:

• Support for various bonding curves (linear, exponential, and logarithmic) to better match price with demand.
• Customizable fee structures for third-party UI integrations.
• Support for multiple quote tokens beyond SOL.
• Integration with Raydium’s liquidity locker, allowing project teams to secure swap fees in perpetuity.

Notably, Pump.fun also plans to implement a revenue-sharing model, inspired by rival GoFundMeme, where a portion of protocol revenue is distributed to coin creators.

“If it succeeds, millions of dollars will go towards aligning creators with their communities and incentivizing higher quality launches,” the team said.

Memecoin Market Cools, but Pump.fun Looks to Reignite Growth

Despite Pump.fun’s rapid growth in 2024, recent data shows a sharp downturn in activity:

• As of February 27, successful memecoin launches on Pump.fun were down roughly 80% from January highs.
• Daily fee revenue dropped from over $4 million in January to around $1 million by mid-March, according to DeFiLlama and a Pump.fun spokesperson.

However, memecoins played a key role in Solana’s explosive DeFi growth in 2024, with total value locked (TVL) on the network rising from $1.4 billion to over $9 billion. Raydium was a major beneficiary, with its daily trading volumes jumping from $245 million to over $2 billion throughout the year.

In January 2025, Raydium launched a leveraged perpetual futures platform in an effort to challenge Jupiter, another top DeFi player on Solana.

The Battle for Solana’s Memecoin Dominance

With Pump.fun and Raydium now on divergent paths, the competition for memecoin liquidity and users is intensifying. PumpSwap’s instant migration process and creator-centric features could attract new projects, but Raydium’s deep liquidity and established infrastructure continue to provide a competitive edge.

The success of PumpSwap will depend not only on user adoption, but also on whether the memecoin sector can sustain long-term momentum.

Pump.fun’s pivot toward full-stack functionality represents a maturing moment for the platform — and for Solana’s broader DeFi ecosystem.

As the battle between memecoin launchpads heats up, the question remains: Can these platforms transform viral hype into lasting value for creators, users, and the network as a whole? The coming months may decide the answer.