On March 26, 2025, Blockworks Research dropped an insightful thread on X about Pumpdotfun and its newly launched decentralized exchange (DEX), Pumpswap. With a detailed dashboard developed by @0xSharples, the thread unpacks Pumpfun’s financials, trading volumes, token launches, and user activity. Let’s break down the highlights of this thread and see what makes Pumpswap a game-changer in the decentralized finance (DeFi) space on Solana.

What Is Pumpswap and Why Does It Matter?

Pumpswap, launched on March 20, 2025, is Pumpdotfun’s native DEX, designed to rival Solana’s existing automated market makers (AMMs) like Raydium. Unlike traditional AMMs, Pumpswap aims to streamline token migration and trading with lower fees and faster transactions. According to a report by BeInCrypto, Pumpswap hit $1 billion in trading volume within a week of its launch, capturing 14% of Solana’s total DEX trading volume by March 24. That’s a big deal for a platform that’s barely a week old!

The dashboard shared by Blockworks Research gives us a deeper look into how Pumpswap and Pumpfun’s bonding curve—a pricing mechanism that adjusts token prices based on supply and demand—have been performing since the launch.

Pumpfun’s Financial Performance: A Revenue Rollercoaster

One of the standout charts in the dashboard highlights Pumpfun’s revenue trends. In January 2025, Pumpfun’s revenue peaked at $7 million, with $1.5 million coming from its graduation fee—a fee of around 6 SOL (Solana’s native token) that tokens paid to migrate to Raydium after completing the bonding curve. However, Pumpfun has since slashed this fee to zero, making it easier for tokens to transition to Pumpswap.

Since its launch, Pumpswap has generated over $250,000 in revenue, a promising start for the new DEX. But it’s not just Pumpfun raking in the cash—external trading platforms like Telegram bots and wallets have also been cashing in on Pumpfun trades. The dashboard shows that while these platforms historically earned less than Pumpfun, the gap has narrowed since Pumpswap’s launch.

Trading Volume: Bonding Curve vs. Pumpswap

The dashboard also breaks down trading volume across Pumpfun’s bonding curve and Pumpswap. About 30% of the bonding curve volume comes from external trading platforms, while Pumpswap sees 40% of its volume from trading platforms and 20% from DEX aggregators like Jupiter. This shows how Pumpswap is attracting a diverse range of traders, from individual users to automated systems.

Interestingly, over 50% of trades on the bonding curve are small, ranging between $1 and $10. This suggests that Pumpfun is a hub for micro-trading, likely driven by retail investors experimenting with new tokens.

Token Launches and Graduations: The Good and the Bad

Pumpfun is known for its token-launching platform, where creators can deploy new tokens using the bonding curve. However, the dashboard reveals a mixed picture. While token launches peaked in January 2025, with thousands of new tokens created daily, the graduation rate—tokens that reach a market cap of $69,000 and migrate to Raydium or Pumpswap—remains low. Some addresses, like one that launched over 12,000 tokens, have a 0% graduation rate, indicating a high level of spam activity.

Since Pumpswap’s launch, graduations have increased to around 500 per day, but this is still below the January peak of 1,000. On the flip side, the total market cap of Pumpfun-launched tokens has dropped from a high of $12 billion to $3.5 billion as of March 2025, reflecting the volatile nature of meme coins and speculative tokens.

User Activity: Who’s Trading on Pumpfun?

The dashboard also sheds light on user behavior. About 15% of accounts have traded on both Pumpswap and the bonding curve on the same day, showing that users are actively engaging with both platforms. This overlap suggests that Pumpswap is successfully integrating with Pumpfun’s existing ecosystem, offering users more trading options without abandoning the bonding curve model.

Why Pumpswap Could Be a Game-Changer

Pumpswap’s launch addresses some of the pain points of Pumpfun’s earlier model. Previously, tokens completing the bonding curve had to pay a 6 SOL fee to migrate to Raydium, a process that could take hours. Pumpswap eliminates this fee and automates the transition, providing higher liquidity and faster trades. Plus, Pumpfun plans to introduce a revenue-sharing model for token creators, which could incentivize more legitimate projects to launch on the platform.

As noted in a Cointelegraph article, Pumpfun has also experimented with incentives like rewarding creators with 0.5 SOL (around $80) for tokens that complete the bonding curve. While this hasn’t fully curbed rug pulls—where creators dump tokens after launch—it’s a step toward encouraging better projects.

Final Thoughts: What’s Next for Pumpdotfun?

Pumpdotfun’s Pumpswap is shaking up the DeFi space on Solana, and Blockworks Research’s dashboard gives us a front-row seat to its impact. With low fees, seamless token migration, and a growing user base, Pumpswap has the potential to become a go-to DEX for Solana traders. However, challenges like spam token launches and market volatility remain hurdles to overcome.

If you’re curious to explore more, you can check out the full dashboard on Blockworks Research’s website. What do you think about Pumpswap’s rise? Let me know in the comments!