PancakeSwap surging: What's driving CAKE Coin's increase?
PancakeSwap Breaks Records in May with Volumes and User Count
In a spectacular surge, the popular decentralized exchange, PancakeSwap, set new records in trading volume and user count back in May. This significant leap was primarily fueled by new token launches and airdrop campaigns on the BNB Smart Chain.
During this period, PancakeSwap recorded a staggering trading volume of $173.5 billion, outshining its 2021 performance and setting a new benchmark. Simultaneously, the number of active wallets surged past the 3.1 million mark, underscoring the growing popularity of the platform.
PancakeSwap - Binance's Airdrop Hub
PancakeSwap has emerged as the prime destination for Binance wallet users to access airdrops and token sales. Consequently, it plays a pivotal role in Binance's marketing campaigns. This synergy was further strengthened by the 21st special token sale event launched by Binance on June 5, which contributed to increased activity on the exchange.
Fees Hitting New Highs
The platform's daily trading fee of $8.8 million comfortably outpaced all other applications and smart contracts, save for Tether. Weekly fees even soared beyond $4.4 million, indicative of a prosperous June ahead. The escalating trading traffic is an encouraging sign, hinting at sustained growth.
However, the Total Value Locked (TVL) on PancakeSwap remained somewhat stable at approximately $1.7 billion. Nevertheless, smaller investors exhibited a keen interest in trendy tokens on the platform.
CAKE Price on the Rise After Coinbase Announcement
While PancakeSwap has achieved impressive trading volumes, its native token CAKE is yet to recover its 2021 peak. However, the token showed a promising 2.3% upward leap to $2.49 upon Coinbase's declaration of its listing plans. Despite no specific date provided for listing, this announcement sent ripples across the cryptocurrency market.
With a total supply of 450 million, CAKE maintains a low inflation rate through regular token burns. Although its market value has remained below $1 billion, the escalating trading volume on PancakeSwap suggests that the token price may soon escalate.
However, the open position size in derivative markets remains relatively low at $30 million, indicating cautious investor behavior due to price volatility. CAKE is currently in a consolidation phase, with short-term, volatile price movements dominating the discourse.
BNB Holds Steady, but Experts Caution
Currently, BNB is trading horizontally at the $667.70 level. Despite the heavy activity on the chart, experts caution that this rally might primarily be an outcome of temporary boosts, which may not extend significantly.
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Historical trading volume of PancakeSwap: Within its first year, PancakeSwap accumulated trade volumes exceeding $100 billion. As of recent data, PancakeSwap's cumulative DEX volume has surpassed $1.8 trillion, establishing its substantial presence in the DeFi ecosystem.
Current status of CAKE Token: The price of CAKE token is approximately $2.42. The current circulating supply of CAKE is about 321.64 million tokens. The 24-hour trading volume of CAKE recently reached $105.24 million, reflecting ongoing trading activity. The market cap of CAKE is around $893.72 million, signifying its significant value in the cryptocurrency market.
Platform Performance: PancakeSwap continues to be a leading DEX, especially on the BNB Chain, with a Total Value Locked (TVL) of over $1.68 billion. It has faced competition with other DEXs like Uniswap, but its innovative features and multi-chain expansion have positioned it well in the DeFi space.
Recent Developments: Recently, PancakeSwap's daily trading volume exceeded that of Uniswap by 60% over a 24-hour period. There have also been proposals affecting the CAKE token, such as veCAKE adjustments aimed at reducing emissions and redirecting incentives.
Technology-Driven Finance BoostAs PancakeSwap continues to leverage advanced technology, it enhances its finance services, as seen in the surge of trading volume and active wallets witnessed in May.
Investing Opportunities on Binance's Airdrop HubFuelled by the synergistic partnership with Binance, PancakeSwap presents a prime opportunity for investors to get involved in airdrop campaigns and token sales, leading to increased trading activity.
