PumpSwap Hits $100M in TVL Amid Memecoin Resurgence

By: Eliza Bennet

The decentralized exchange (DEX) PumpSwap, launched by Solana-based memecoin hub Pump.fun, has achieved a milestone of $100 million in total value locked (TVL). This achievement comes merely 50 days after its inception, reflecting a significant comeback for the memecoin market. After a period of uncertainty, particularly following the meteoric rise and fall of various memecoins earlier in the year, the sector is witnessing renewed interest and growth.

PumpSwap, established on March 19, serves as a dedicated trading platform for tokens graduating from the Pump.fun launchpad. The platform has consistently grown, with over $18 billion in cumulative trading volume to date. Daily trading volumes have remained robust, frequently surpassing $500 million in May alone. On May 5, the exchange reported nearly 500,000 daily active wallets, a testament to its sustained engagement and user activity.

This resurgence in PumpSwap's activity aligns with broader market movements in the memecoin space. Despite previous setbacks including scandals and allegations of pump-and-dump schemes linked to prominent figures like Argentine President Javier Milei, memecoins are again drawing investor interest. High-profile memecoins, including PENGU and PEPE, have shown impressive gains, with PENGU seeing a 230% increase over the past month.

Nonetheless, the market remains risky, with about 99% of memecoins launched by Pump.fun still failing and showing patterns of fraudulent activity. Despite these challenges, the strong influx of users and capital into the memecoin segment indicates a persistent speculative interest in this volatile part of the cryptocurrency market.