PancakeSwap Surges Despite Crypto Market Downturn
PancakeSwap, the leading decentralized exchange on the BSC Chain, has seen its value double in the past 30 days, even as most cryptocurrencies experienced a downturn. The CAKE token reached a high of $2.80 on Friday, marking its highest point since February 25 and a 145% increase from its lowest level this month.
This surge is attributed to the platform’s growing market share in the decentralized exchange (DEX) industry. According to DeFi Llama,the network’s weekly volume jumped by nearly 60% in the last seven days,reaching $14.1 billion. This growth pushed its 30-day volume to $53 billion, surpassing the combined weekly volume of uniswap, Raydium, meteora, and Fluid.The increased activity has also led to a rise in network fees.TokenTerminal reports that PancakeSwap has generated almost $120 million in revenue this year, making it the second most profitable DEX after Uniswap. Though, the surge in volume was driven by recently launched meme coins like Mubarak, Mansa, AOPA, Siren, and AIFlow Token. These meme coins have seen volatile price movements, with Mubarak’s market cap dropping from $200 million to $110 million this week. The network’s revenue has soared, but the sustainability of this trend is uncertain.
Despite the positive momentum,there are risks. the number of active addresses and network growth has declined. The network growth metric fell from 2,186 to 738, while daily active addresses dropped from 13.6k to 6,020. The CAKE price has climbed from $1.1825 to $2.9, moving above the 50-day and 200-day moving averages, indicating bullish control. technical indicators like the Relative Strength Index and Awesome Oscillator point upwards, suggesting a potential rise to $3.4. Yet, with active addresses and growth metrics falling, a retreat after hitting resistance levels is possible. The CAKE price could face challenges as the network’s growth and active addresses have decreased. The CAKE price analysis shows it may hit $3.4, but a retreat is highly likely due to the decline in active users. The CAKE price could face resistance at $3.4, its highest level in February. the CAKE price chart shows a strong pivot reverse point at $2.73, but a retreat is possible after reaching this level.
- CAKE price jumped 145% in 30 days.
- Weekly volume is higher than other top BSC chain meme coins.
- Network growth and active addresses have dropped significantly.
While the future remains uncertain, the CAKE price’s upward trend is evident. The CAKE price chart indicates a strong pivot reverse point at $2.73. The network’s future depends on sustaining its current trajectory.
