Solana Trench Warfare
Pump.fun ended its partnership with Solana DEX Raydium, launching its own AMM – PumpSwap. Raydium has lost a significant chunk of Solana trading volume essentially overnight, but the team is not giving up without a fight.
Preview
TLDR
- Pump.fun (Pump) ended its partnership with Raydium, launching its own AMM – PumpSwap. Memecoins that used to migrate from the Pump launchpad to Raydium now list on PumpSwap instead, allowing Pump to capture more value in the memecoin market.
- Since the dropoff in sentiment in January, Pump’s revenue has been steadily declining, spurring the team to control the entire funnel in an attempt to capture more revenue.
- PumpSwap’s rise threatens Raydium’s dominance, but Pump’s AMM is only 2 weeks old. Both platforms are expected to leverage incentive models to maintain relevance and grow volume as they hope for market sentiment to rebound.
- Pump’s pivot to take control of the Pump token lifecycle was driven by a dropoff in revenue amid waning memecoin trading activity. For Pump to return to its glory days in terms of revenue, the team will still need to be blessed with a return of market-wide bullish fervor.
