PumpSwap's TVL Hits $100M in 50 Days Amid Memecoin Resurgence

PumpSwap, a decentralized exchange (DEX) launched by the Solana-based memecoin factory Pump.fun, has achieved a significant milestone by reaching $100 million in total value locked (TVL) just 50 days after its launch. This accomplishment comes at a time when memecoin trading is experiencing a resurgence, defying earlier predictions of the sector's decline following its rapid growth earlier this year.

PumpSwap was introduced on March 19 with the aim of providing a dedicated trading platform for tokens that have graduated from Pump.fun’s launchpad. The platform has witnessed a steady increase in daily activity, with a cumulative trading volume exceeding $18 billion to date. Daily volumes have consistently remained above $500 million in May, and the exchange reached a peak of nearly 500,000 daily active wallets on May 5, according to data from Dune Analytics. This growth in user activity and daily swap volume indicates sustained engagement on the platform.

The resurgence of PumpSwap follows a period of stagnation earlier this year, which was partly triggered by a scandal involving Argentine President Javier Milei and a Libra memecoin. The memecoin's value plummeted after a promotional post on Milei's official X account, contributing to the sector's temporary downturn.

Despite high-profile dismissals from industry figures, the memecoin sector is experiencing a comeback. Blue-chip memecoins have posted significant gains over the past week, with every one of the top 10 memecoins by market cap seeing double-digit increases. PENGU, for instance, surged 230% over the past month, while PEPE led weekly gains with over 40% growth. Pump.fun, which was once dismissed due to a wave of rug pulls and pump-and-dump accusations, now finds its DEX thriving amidst this unexpected revival.

However, the resurgence does not negate the fact that nearly 99% of Pump.fun launched memecoins continue to fail, with a vast percentage exhibiting fraudulent behavior. Nevertheless, the influx of users and capital into the memecoin sector suggests that the speculative appetite in crypto’s most chaotic corner remains far from extinguished.