Raydiums Share Of Memecoin Volume Surges In Q1 But Pump.funs DEX Poses Risk

Raydium’s dominance in Solana-based memecoin trading has increased to 83% over the past three months, even as overall memecoin market activity declined.

According to Memecoins in Q1 2025 report by CEX.io, Raydium has seen its memecoin trading volume surge to 83% despite the contraction in the overall memecoin market activity and market cap.

Memecoins were riding high on speculative momentum in January following high-profile political launches like the Trump (TRUMP) and Melania (MELANIA) tokens. At their peak, memecoins accounted for 11% of total crypto trading volume on Jan. 20, the CEX.io report noted. However, by April 1, the memecoin market cap had plummeted by 58% from its January high, with their share of trading volume falling to just 4%.

Despite the decline in the overall memecoin market activity, Raydium’s share of memecoin trading volume has increased from 77% to 83% in the first quarter of 2025. This is the direct result of the exchange’s unofficial partnership with Pump.fun, which is responsible for the daily creation of over 50% of SPL tokens. Once these memecoins hit a $69K market cap, they were automatically listed on Raydium.

However, with Pump.fun recently launching its own DEX for memecoins, it’s uncertain how this will affect Raydium’s standing in the memecoin trading ecosystem. Despite Raydium’s launch of its own memecoin launch platform, LaunchLab, much of its past revenue came from memecoins migrating from Pump.fun. Experts have pointed out that the success of launchpads like Pump.fun is largely driven by their community and lore, which will be difficult for Raydium to replicate.

To summarize, while Raydium’s share of memecoin trading volume increased in Q1, much of that growth was fueled by Pump.fun token migration. Now that Pump.fun has introduced its own DEX, Raydium may face a significant hit to its trading volume. The extent of that decline will likely hinge on the success or failure of its own LaunchLab platform.