Currently we can assure that PancakeSwap is one of the most influential DEX acting on the Binance Smart Chain (BSC) network. If we were to go back to 2021, we would see a great popularity emerged based on memecoins. Not only that was the reason, but also the fact that the low commissions meant a direct entry for all types of users, unlike what happened in those times with Ethereum.
PancakeSwap | all-in-one multichain DEX
However, as any meme currency is based much more on speculation, it is likely that after a big price rise, driven by the spontaneous fanaticism that happens through social networks, it then falls sharply. In this situation we can reflect on what SafeMoon was, which reached a market capitalization of $6 billion dollars, and then fell drastically, even when the general market was in good condition in bullish inclinations.
Over time and with the birth of other decentralized exchange platforms, the impact and interest that PancakeSwap had achieved was somewhat lost, i.e., eyes were turned to other frontiers. All the more reason when platforms such as Pump.fun appeared on Solana, added to the fact that transactions are fast and much cheaper, with a much more scalable architecture, which translates into freedom from network congestion problems, and therefore, the transaction does not usually fail.
If we consider the competition, one direct competitor we should mention is Uniswap; an Ethereum-based DEX. In these last 24 hours, on PancakeSwap, there has been a significant volume of trading activity, led by its own CAKE token, which has picked up enough momentum to reach 37% up, but has even gone as high as 40%. Considering that it is up 57% for the week, one can imagine that it still has upside potential in the coming days. In fact, right now it is priced at $2.57, with a market cap of $776 million, and a trading volume of $845 million.
GeckoTerminal | Cake/USD - Pancackeswap V2 (BSC)
What could be the reason why the price of CAKE has skyrocketed? We can make a precision about one of the stable coins known to all. Recall that Binance had announced the delisting of USDT for European users in the framework of the alleged non-compliance with MiCA regulations, which was the reason why that measure had to be taken, which would also affect other stablecoins. With this in mind, it is a valid reason why users have withdrawn their funds in a timely manner and these are derived to decentralized platforms (PancakeSwap). We will also mention that not only is memecoins trading enabled, but also the use of liquidity pools, just coincidentally with the CAKE/USDT pair, with an APR which is quite attractive for most users.
CAKE was not the only token that has performed well. It has also seen prices that have been steadily rising across the board. Another token that has been seen showing off has been MUBARAK, which managed to reach a 56% rise by the end of the day, with a market cap of $150 million with 12% volume in trades per day. This currency was created to celebrate the end of Ramadan.
These and other currencies have performed well, and perhaps this is due to the recent launch of the SpringBoard platform, which, to get an idea, has similar characteristics to Pump.fun.
DappRadar | Top Blockchains
What is really shocking and denotes the growth that is being seen regarding the interest in PancakeSwap and its environment, is the information provided by the DappRadar platform, which, according to its real-time records, points out that Binance Smart Chain managed to position itself in second place, just below Ethereum, as the second largest volume of decentralized applications, with respect to the main blockchains, with a volume of $9.34 billion, compared to Ethereum's $77.1 billion.
If we look at it from a certain perspective, we can understand that this is gigantic, and while it can be understood that PancakeSwap has influenced a lot, so has a large set of dApps that make up the ecosystem immersed in the BSC.
- Main image created in Dream Lab (AI) and edited in Canva.
- I have consulted information at decrypt.co.
- Translated from Spanish to English with DeepL.