Altcoin

As PancakeSwap outshines UniSwap, analyzing the effects on CAKE

As PancakeSwap continues to push its efforts toward becoming multichain, it has now gone live on Arbitrum One. CAKE’s price action, however, remained bearish. 

Published

1 year ago

on

  • PancakeSwap outperformed Uniswap in terms of web traffic by a huge margin. 
  • The DEX went live on Arbitrum One, but CAKE’s price was under bears’ influence. 

PancakeSwap [CAKE] overtook Uniswap [UNI] in terms of web activity by a huge margin in the last 30 days. A factor behind this performance could be the efforts made by CAKE to go multichain. 

Read PancakeSwap’s [CAKE] Price Prediction 2023-24

With recent launches on zkSync Era and zkEVM, PancakeSwap has been setting up its game by expanding its ecosystem. In fact, the growth trajectory can rise further with the DEX’s latest launch on Arbitrum [ARB] One. However, the DEX’s ecosystem growth has not affected its token’s price positively. 

PancakeSwap outshines Uniswap

CryptoDiffer, a popular Twitter handle that posts updates related to cryptos, revealed that CAKE’s web traffic was nearly 4 million more than that of Uniswap in the month of July 2023. 

Not only that, but PancakeSwap also dominated Uniswap on BNB Chain [BNB]. This was evident from CAKE’s daily volume dominance, which consistently remained above the 90% mark. 

Source: Dune

PancakeSwap’s multichain efforts are praiseworthy 

In the recent past, PancakeSwap has drastically increased its efforts to go multichain. Not to mention, the DEX went live on zkSync Era and zkEVM  in the past few weeks. In fact, only a few weeks after launch, PancakeSwap v3’s trading volume on zkEVM reached the $10 million mark.

Additionally, its TVL also increased by over 8% in the last 24 hours.

 

There was more good news for PancakeSwap, as it recently went live on Arbitrum One. As per the official announcement, this launch will allow users to experience the utmost user-friendliness and industry-lowest fees on the Arbitrum network.

Users can select the price that best suits their preferences and select liquidity pools from a multi-tier fee structure with fees ranging from 0.01% to 1%. The DEX also mentioned the reasons behind choosing Arbitrum, such as mass adoption potential, scalability, and efficiency.

Considering the rise in PancakeSwap’s popularity, the latest launch can fuel further adoption and usage of the DEX in the months to come. 

CAKE is not getting affected

While the DEX continued to expand its ecosystem, its native token, CAKE, was still struggling to push its price up. According to

CoinMarketCap, CAKE’s price dropped by more than 3% in the last seven days.

At press time, it was trading at $1.47 with a market capitalization of over $312 million. 

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

Despite the downtrend, investors’ confidence in CAKE remained high, as evident from the slight rise in the total number of holders. The recent launches have also helped CAKE remain a topic of discussion, causing its social volume to spike.

Additionally, whale activity around the token remained high. 

Source: Santiment

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