Connect with us
Active Currencies 14033
Market Cap $2,440,436,170,549.72
Bitcoin Share 50.72%
24h Market Cap Change $-2.43
Altcoin

CAKE records promising growth, but warning signals remain

2min Read
Posted:
Avatar
editors
CAKE records promising growth, but warning signals remain
Avatar
editors
Posted:

Share this article

  • Over the last 30 days, PancakeSwap’s trading volume surged nearly 60%.
  • CAKE lost about 12% of its value since hitting a three-month high on 9 February.

According to a tweet by BNB chain, PancakeSwap [CAKE] became the most used dApp on the network. PancakeSwap stood first in the list of top 15 dApps on the BNB Chain, accounting for 62% of the total users.

Read PancakeSwap’s [CAKE] Price Prediction 2023-2024

BNB Chain stated that over 1.36 million users have used PancakeSwap in 2023, highlighting the growing dominance of the decentralized exchange (DEX).

It should be noted that BNB Chain was the largest blockchain in terms of daily active users at the time of writing.

Sharp surge in monthly trading volume

The findings of BNB Chain were corroborated by data from Token Terminal. The growth in the number of users boosted the trading volume on PancakeSwap. Over the last 30 days, the trading volume surged nearly 60%.

The jump in trading volume gave a fillip to the protocol trading fees which grew by 60% as well in the same time period. While assessing the performance of DEXes, there is a lot of focus on trading fees, as they act as the primary source of revenue for the protocol.

Source: Token Terminal

On the other hand, the DeFi protocol failed to show growth in its total value locked (TVL). Over the past two weeks, the TVL fell by over 11% to settle at $3.6 billion at press time, data from DeFiLlama showed.

Source: DeFiLlama

Investors don’t like CAKE’s flavor!

The recent on-chain activity won’t please CAKE holders. The daily active addresses dropped steadily since hitting a weekly peak on 19 February. CAKE’s transaction volume showed a similar trajectory.

A reason for this could be because most of the transactions were not yielding profits for the holders, as evidenced by the declining transaction volume in profit.

Source: Santiment

The weighted sentiment for CAKE dipped as well, indicating that investors were wary of their CAKE holdings.

How much are 1,10,100 CAKEs worth today?

At the peak of its bullish momentum, CAKE reached a three-month high on 9 February. But since then, the token lost about 12% of its value until press time, data from CoinMarketCap showed.

Earlier this week, PancakeSwap announced that it burned seven million tokens out of circulation. CAKE holders would look for encouraging numbers on the burning front to drive up the coin’s price in the days to come.

 

Previous:
Next:

Share

Avatar
Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.