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The excitement surrounding Solana’s memecoins has propelled PumpSwap’s trading volume to an unprecedented $1.2 billion.
In spite of elevated trading volumes, PumpSwap’s fee generation remains limited, with $2.98 million in fees reported on Monday.
Key points:
- PumpSwap achieved an unprecedented trading volume of $1.28 billion within 24 hours as the memecoin market for Solana experiences a revival.
- Even with substantial trading volumes, PumpSwap’s fee collection remains limited, with $2.98 million in fees logged on Jan. 5.
- The revival of memecoin trading on PumpSwap indicates a renewed enthusiasm for the Solana market, though ongoing profitability is uncertain.
PumpSwap, the trading segment of the Pump ecosystem, is impressively generating significant figures as Solana’s memecoin market reignites.
This increase coincides with the wider “memecoin resurgence” trend that has been developing since the beginning of the year, particularly on Solana. Traders have been shifting towards high-risk segments of the market as bitcoin remains above critical levels and liquidity improves following the holiday season, boosting a range of meme tokens across various chains.
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Data monitored by DeFiLlama indicates that the Pump DEX ecosystem has executed $1.28 billion in volume over the last 24 hours, elevating the 7-day volume to $6.15 billion and the 30-day volume to $19.69 billion. The total cumulative volume is now approaching $176.8 billion, serving as a reminder of how swiftly retail flows return when memes gain traction.
(DefiLlama)
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A snapshot from Jan. 5 reveals the significant dominance PumpSwap has achieved within its own ecosystem: approximately $1.21 billion of the daily volume originated from PumpSwap, in contrast to $63.7 million from pump.fun’s older route.
PumpSwap serves as Pump’s integrated decentralized exchange on Solana, where newly launched tokens can trade once they “graduate” from Pump.fun. Pump.fun is a Solana memecoin launchpad that allows anyone to create a token in mere minutes, typically utilizing a straightforward bonding-curve style sale that facilitates early liquidity.
Tokens focused on Japan and anime themes appeared to be the preferred choice for new token launches during the Asian afternoon hours on Tuesday, although these themes can shift rapidly depending on emerging narratives or the demographics of users engaging with the platform at that moment.
(Pump.fun)
However, there’s a caveat. In spite of the record trading activity, fee generation isn’t rising at the same rate. On Jan. 5, fees totaled approximately $2.98 million, with around $1.21 million classified as protocol revenue and about $881,700 allocated to holders.
Much of the memecoin trading involves quick in-and-out transactions, frequently occurring in low-fee pools.
Additionally, rivalry among Solana platforms tends to drive down fees as they compete to become the primary choice for swaps.
PumpSwap’s increase signifies another indication that the market’s “fun” sector is making a comeback — and when memes flourish, they tend to elevate the overall activity on Solana.
Whether the trading volume remains consistent (and translates into significant revenue) will depend on how long traders continue to engage and if this becomes more than just a fleeting moment in the meme season.
