Decentralized exchanges (DEXs) akin to Raydium, Orca and the newly launched Pumpswap have develop into the center of Meme Coin Storm due to their quick buying and selling, low costs and simple accessibility.
Meme cash have develop into an simple phenomenon within the crypto market. However is that this a golden funding alternative or a bubble ready to burst?
Will Dex be the fertile floor for meme cash?
Dexs has modified the best way Meme Cash are created and traded, particularly in Solana. This can be a blockchain well-known for processing over 65,000 transactions per second for just some cents payment. The launch of Pumpswap, the brand new Dex from Token Launchpad Pump.enjoyable, is proof of this development.
Beforehand, Pump.Enjoyable’s token needed to pay 6 Sol earlier than it was transferred to Raydium for a transaction. Nevertheless, Pumpswap has now eradicated this payment and permits tokens to be traded instantly inside its ecosystem. This reduces prices and maintains fluidity inside the pump. Eat ecosystems and promote a stronger surroundings for the expansion of memecoin.
Raydium additionally got here up with the Meme Coin LaunchPad LaunchLab, competing with Pump.Enjoyable.
Moreover, Pumpswap and different DEXs make use of an automatic market maker (AMM) mannequin much like Uniswap V4 and Raydium V4, providing low buying and selling charges (0.25%), eliminating the necessity for liquidity pool creation charges. This encourages customers to create new tokens at a minimal price and begin buying and selling instantly.
PumpFun is almost all of tokens launched in Solana. Supply: Dune
The event has fueled the explosion of hundreds of recent meme cash every week. Dune knowledge reveals that over 8.7 million tokens have been created in Pump.enjoyable. Since its launch, Pump.Enjoyable has surpassed over 621,000 new tokens per 30 days. Pump.Enjoyable tokens accounted for 61% of tokens launched at Solana.
Moreover, Pumpswap can be dedicated to sharing income with token creators, encouraging much more new tasks and communities. Instruments just like the Phantom pockets make DEXS simpler for customers to entry DEXS, rising liquidity and buying and selling quantity.
Whole Dex quantity as of March 21, 2025. Supply: Defilama
With complete buying and selling volumes reaching $563 billion in January 2025, Dexs is selling Meme Coin Commerce and serving as a bridge to combine them into the broader monetary ecosystem.
The BNB chain dominates the DEX market, exceeding 30% market share and main buying and selling quantity and charges since March fifteenth.
Darkish Sides of Meme Coin – Rug Hair Pull and Volatility
Dex’s memecoin increase additionally poses important dangers. First, most memecoins lack intrinsic worth and rely totally on crowd FOMOs and viral social media campaigns. As hype fades, many tokens expertise catastrophic crashes.
Solana-based Meme Coin Libra as soon as reached a market capitalization of a whole lot of hundreds of thousands of {dollars}, but it surely practically fell to zero after a significant crash in February 2025. In the identical month, Solana’s Meme Coin Buying and selling quantity plunged to $20.6 billion, indicating a possible decline on this development.
Secondly, the creation prices of such low tokens have made pump.enjoyable and related platforms a paradise for scammers. “Ragpull,” the place builders emit liquidity and disappear, is changing into more and more frequent and eroding investor belief.
Lastly, regulatory strain poses a significant risk. Dexs and Meme Cash might face critical penalties as authorities enhance management of their cryptocurrency.
Dexs akin to Pumpswap, Raydium, and Jupiter have been vital in fueling the memecoin epidemic. Pumpswap can mark turning factors and assist Solana meme cash get well after they fade. Nevertheless, it stays a really unstable area the place the bubble can burst at any time with out thorough analysis or a transparent technique.
