Decentralized exchanges (DEXs) such as Raydium, Orca and the newly launched Pumpswap have become the heart of Meme Coin Storm thanks to their fast trading, low prices and easy accessibility.
Meme coins have become an undeniable phenomenon in the crypto market. But is this a golden investment opportunity or a bubble waiting to burst?
Will Dex be the fertile ground for meme coins?
Dexs has changed the way Meme Coins are created and traded, especially in Solana. This is a blockchain well-known for processing over 65,000 transactions per second for just a few cents fee. The launch of Pumpswap, the new Dex from Token Launchpad Pump.fun, is evidence of this trend.
Previously, Pump.Fun’s token had to pay 6 Sol before it was transferred to Raydium for a transaction. However, Pumpswap has now eliminated this fee and allows tokens to be traded immediately within its ecosystem. This reduces costs and maintains fluidity within the pump. Eat ecosystems and promote a stronger environment for the growth of memecoin.
Raydium also came up with the Meme Coin LaunchPad LaunchLab, competing with Pump.Fun.
Additionally, Pumpswap and other DEXs employ an automated market maker (AMM) model similar to Uniswap V4 and Raydium V4, offering low trading fees (0.25%), eliminating the need for liquidity pool creation fees. This encourages users to create new tokens at a minimum cost and start trading immediately.
PumpFun is the majority of tokens released in Solana. Source: Dune
The development has fueled the explosion of thousands of new meme coins each week. Dune data shows that over 8.7 million tokens have been created in Pump.fun. Since its launch, Pump.Fun has surpassed over 621,000 new tokens per month. Pump.Fun tokens accounted for 61% of tokens released at Solana.
Additionally, Pumpswap is also committed to sharing revenue with token creators, encouraging even more new projects and communities. Tools like the Phantom wallet make DEXS easier for users to access DEXS, increasing liquidity and trading volume.
Total Dex volume as of March 21, 2025. Source: Defilama
With total trading volumes reaching $563 billion in January 2025, Dexs is promoting Meme Coin Trade and serving as a bridge to integrate them into the broader financial ecosystem.
The BNB chain dominates the DEX market, exceeding 30% market share and leading trading volume and fees since March 15th.
Dark Sides of Meme Coin – Rug Hair Pull and Volatility
Dex’s memecoin boom also poses significant risks. First, most memecoins lack intrinsic value and rely entirely on crowd FOMOs and viral social media campaigns. As hype fades, many tokens experience catastrophic crashes.
Solana-based Meme Coin Libra once reached a market capitalization of hundreds of millions of dollars, but it nearly fell to zero after a major crash in February 2025. In the same month, Solana’s Meme Coin Trading volume plunged to $20.6 billion, indicating a potential decline in this trend.
Secondly, the creation costs of such low tokens have made pump.fun and similar platforms a paradise for scammers. “Ragpull,” where developers emit liquidity and disappear, is becoming increasingly common and eroding investor trust.
Finally, regulatory pressure poses a major threat. Dexs and Meme Coins could face serious consequences as authorities increase control of their cryptocurrency.
Dexs such as Pumpswap, Raydium, and Jupiter were important in fueling the memecoin epidemic. Pumpswap can mark turning points and help Solana meme coins recover after they fade. However, it remains a very unstable space where the bubble can burst at any time without thorough research or a clear strategy.
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