PumpSwap, the decentralized exchange affiliated with the Solana-based launchpad Pumpfun, has achieved a new milestone, with its total value locked (TVL) soaring to an impressive $334.81 million. This uptick occurred over the recent weekend and comes on the heels of a revamped fee structure intended to support creators of smaller tokens.
According to data from DefiLlama, the increase in locked capital wasn’t the only notable development, as the trading activity surrounding Pumpfun’s native token, PUMP, also reached record volumes, totaling $1.66 billion for the weekend. This surge in trading has been accompanied by a remarkable rise in PUMP’s price, which experienced a staggering 70% increase over the past week and an impressive 144% gain over the last two weeks. The token peaked at an all-time high of $0.00889 on September 14, as reported by CoinGecko.
The activity on PumpSwap has translated into significant financial results for the platform, with its daily revenue exceeding $3.1 million as of September 15. This figure marks a significant recovery, being the highest since mid-February, and positions Pumpfun as the third-largest protocol in the DeFi ecosystem by daily revenue, surpassing competitors like Hyperliquid, according to DefiLlama.
This growth follows the implementation of the first phase of Pumpfun’s “Project Ascend,” specifically the “Dynamic Fees V1” model introduced on its PumpSwap marketplace. This update is designed to adjust how creator fees operate, allowing creators of smaller-cap tokens to benefit from higher fees. Conversely, as a token’s market cap increases, the percentage of fees allocated to its creators diminishes. Pumpfun has described this approach as a way to facilitate the launching of new, smaller projects by providing more equitable rewards.
“With these enhancements, building on Pumpfun will become 10 times more fruitful,” the platform declared in an X thread, anticipating a surge in innovative talent joining its ranks, from content creators to startups.
PUMP’s recent performance marks a recovery following a rocky initial coin offering (ICO) characterized by early sell-offs from large investors. Despite the initial challenges, including a price drop after launch despite a substantial $20 million token buyback program, PUMP has rebounded thanks to aggressive buyback strategies. Pumpfun has committed to utilizing 100% of its daily revenue to purchase PUMP on the open market.
Furthermore, the upside for PUMP was bolstered by its listing on prominent exchanges, including Binance, Upbit, and Bithumb, on September 11, which has expanded accessibility for traders looking to engage with the token.
As the ecosystem surrounding Pumpfun continues to evolve, the combination of innovative fee structures and strategic market engagement creates a dynamic environment for both creators and investors alike.
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