The memecoin “trenches” on Solana have been a wild ride, and a recent thread by Nico (@nicodotfun) on X gives a deep dive into their current state as of April 2025. If you’re into crypto trading or just curious about the memecoin frenzy, this breakdown has some eye-opening insights. Let’s unpack the key points and see what’s happening in this speculative corner of the crypto world.

Memecoin Market Recovery: A New Chapter

Nico kicks off by addressing the perception that the memecoin trenches are “dead.” A few months back, when $SOL hit highs of $290 and Bitcoin soared past $100k, memecoins like $TRUMP were stealing the show with massive trading volume and liquidity. But the market cooled off—$SOL dropped to a local low of $95, and Bitcoin retraced to the $74-88k range. Fast forward to April 2025, and things are heating up again. $SOL has surged 46% in just 15 days to $140+, and Bitcoin is back above $90k. This recovery signals renewed interest in memecoins, even if the market isn’t at its previous peak.

Despite earlier bearish sentiment and lower $SOL prices, Nico points out that the data tells a different story. Platforms like Pump.fun are showing signs of life, with daily trading volumes in April ranging from $1M to $2.7M, averaging around $1.5-2M. That’s a significant uptick from the quieter months, suggesting traders are jumping back into the trenches.

PumpSwap: A Game-Changer for Memecoin Trading

One of the biggest developments Nico highlights is the launch of PumpSwap by the Pump.fun team. PumpSwap is a decentralized exchange (DEX) on Solana that’s making waves by streamlining the memecoin trading experience. Previously, tokens launched on Pump.fun had to migrate to other DEXs like Raydium for liquidity, often incurring a 6 $SOL migration fee. PumpSwap eliminates that fee, allowing instant migrations and boosting liquidity for new tokens.

Since its launch, PumpSwap has been handling $300-480M in daily trading volume, capturing 9-19% of the Solana DEX market share. It charges a 0.25% fee per trade, with 0.20% going to liquidity providers (LPs) and 0.05% to the protocol. In its first month, PumpSwap generated around $25M in total fees—$20M for LPs and $5M for the protocol. Nico expects this to grow as more traders shift to PumpSwap, especially since new tokens are increasingly preferred over older ones.

This aligns with trends noted in a Medium article from March 2025, which predicted that PumpSwap could take a 30-50% chunk of trading volume away from Raydium by keeping liquidity in-house. It’s a smart move that’s making the trenches more accessible and cost-effective for traders.

Token Launches and Graduation Rates

Pump.fun remains a hub for memecoin creation, with 9.7M tokens launched to date. In April 2025, 20-40k tokens are being created daily, but only 100-350 (0.4-0.8%) “graduate” to become tradeable on DEXs. This graduation rate has dropped over time, reflecting a decline in users and trading volume. Nico explains that this lower rate points to more “PvP” (player vs. player) dynamics in the trenches—small groups of traders bundle up supply on new launches, only to dump on each other when additional liquidity doesn’t materialize. It’s a tougher environment, but the battle-hardened traders who’ve stuck around are still finding opportunities.

Active Users and Trading Bots

User activity in the memecoin space has stabilized at around 150k daily active wallets, down from a peak of 200-400k between December 2024 and February 2025. This user base is split evenly between recurring and new wallets, though many traders use multiple wallets or switch them frequently. While the numbers are lower than the peak, 150k daily users still show a committed community.

Much of the trading action happens through bots on platforms like AxiomExchange, Bullx.io, Photon, GMGN, and TrojanOnSolana. Nico breaks down their stats:

• Axiom: 17-30k daily active users (DAU), $20-33M daily volume, 700k-1.5M transactions/day.
• Bullx: 20-30k DAU, $20-33M daily volume, 200-400k transactions/day.
• Photon: 18-27k DAU, $30-50M daily volume, 250-350k transactions/day.
• GMGN: 10-18k DAU, $8-20M daily volume, 180k-290k transactions/day.
• Trojan: 14-25k DAU, $7-30M daily volume, ~200k transactions/day.

Together, these platforms account for over 100k users and $100M in daily volume. Lifetime fees and assets under management (AUM) are also impressive—Photon leads with $382M in fees and 539k $SOL ($82.6M) in AUM, while Bullx has $186M in fees and 215k $SOL ($30M) in AUM. Across the memecoin space, Nico estimates there’s over $200M worth of liquid $SOL in circulation, a figure he plans to explore further in a future article.

Why Memecoins Still Matter

Nico argues that memecoins remain the go-to choice for speculative trading on Solana, which he calls the “casino/house.” They’re easy to understand, have a low barrier to entry, and offer high asymmetric upside—perfect for new traders looking for quick gains. Plus, the memecoin space is endlessly dynamic, with new tokens popping up daily based on people, events, memes, and more. Compared to DeFi coins that demand deep knowledge and meticulous management, memecoins are a breath of fresh air for traders who just want to have fun and take risks.

That said, the trenches have gotten harder. The remaining traders are “battle-hardened veterans” who’ve weathered lower $SOL prices and declining volumes. New liquidity—whether from serious crypto investors or retail newcomers dipping their toes in—is key to keeping the memecoin ecosystem thriving. Nico sees this as a cycle: as the broader crypto market grows, more players will jump into the trenches, fueling the next wave of memecoin mania.

Community Reactions

The thread sparked some buzz on X. @seth__sol replied with a humorous video of a horse, captioned “the $horse of agreement and wisdom agrees with you,” adding a lighthearted vibe to the discussion. Others, like @freakyfawi and @Loopierr, praised the thread for its depth, while @baoskee asked about the role of the Pump client in these transactions, to which Nico responded with additional context about PumpSwap’s transaction volumes.

What’s Next for the Trenches?

Nico wraps up with a bold statement: “oh you thought the trenches were dead? Jobs not done, its only just getting started.” He’s optimistic about the memecoin space, especially with tools like PumpSwap making trading smoother and more accessible. While he’s focused on memecoins, he also gives a nod to projects like Hyperliquid and “fartcoin” as potential non-memecoin bets worth watching.

If you’re a trader or just a crypto enthusiast, the Solana memecoin trenches are clearly still alive and kicking in April 2025. With trading volumes picking up, new platforms like PumpSwap shaking things up, and a dedicated community of users, there’s plenty of action to keep an eye on. What do you think—will memecoins continue to dominate Solana, or are we in for a new trend?