Pump.fun, the high-profile Solana-based memecoin launchpad, is in the testing phase for its automated market maker (AMM), which could potentially replace Raydium as the leading decentralized exchange for launched tokens.
This significant development involves a newly identified liquidity pool, amm.pump.fun, currently undergoing internal trials. If successfully implemented, Pump.fun’s proprietary AMM could enhance the platform’s fee collection, directly affecting the trading fees associated with Raydium (RAY).
The shift is timely as memecoins continue to generate substantial trading volumes within the decentralized exchange (DEX) landscape. Reports indicate that Pump.fun has amassed over $500 million in total swap fees, as stated by DeFiLlama. Notably, around 1.4% of tokens launched on the platform transition to Raydium, implying that an in-house AMM could preserve liquidity within the Pump.fun ecosystem.
Speculation in the community suggests that this transition may lead to the introduction of additional features like memecoin perpetuals and lending services. If Pump.fun proceeds with this development, Raydium could experience a significant decline in trading volume, estimated at 30-50%, which would pose a substantial threat to Raydium’s market share. Following the news, Raydium’s token, RAY, has already seen a 20% decrease in value within the past 24 hours, as per market data.
In addition to these advancements, Pump.fun recently made headlines by thwarting an attempted hack related to the $1.4 billion Bybit breach, preventing the hacker from laundering stolen funds through its platform. Pump.fun effectively blocked the attacker’s capacity to transfer assets, hampering their efforts to misuse the memecoin launch process for criminal activity.
The hacker had previously conducted over $26 million in trades utilizing a token named “QinShihuang (500000)” before being banned. Blockchain analysis revealed that the individual had moved 60 SOL to a separate wallet prior to launching the token on Pump.fun, indicating an attempt to obscure the origins of the stolen assets.
