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As PancakeSwap V3 goes live on BNB Chain and Ethereum, CAKE reacted by…

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As PancakeSwap goes live on BNB Chain and Ethereum, here's how MATIC reacted
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  • PancakeSwap V3 will drastically reduce fees compared to V2.
  • CAKE’s TVL remained stagnant, but metrics and indicators looked bullish. 

PancakeSwap [CAKE] announced the launch of its much-awaited PancakeSwap V3, bringing several new changes to the table. The DEX’s official tweet on 3 April confirmed that V3 was live on both BNB Chain and Ethereum [ETH]. 

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

All you need to know about PancakeSwap V3

The official announcement mentioned several new features and changes that PancakeSwap’s V3 brought with it. For instance, V3 will offer considerably lower fees—up to 25 times lower compared to the previous version.

As noted earlier, CAKE’s revenue had been on a declining trend. V3’s lower fee could attract new users, which could then result in an increase in the network’s revenue.

Apart from low fees, another key aspect of PancakeSwap V3 is capital efficiency. By selecting a specific price range when providing liquidity, liquidity providers could now “concentrate” their capital into smaller price intervals with V3. It was also interesting to note that PancakeSwap V3 was built on top of Uniswap V3 with added refinements.  

Will V3 propel MATIC? 

Though the update looks promising, PancakeSwap’s network value does not seem to have been affected positively yet. This was evident from a look at DeFiLlama’s data, which pointed out CAKE’s stagnant TVL. However, the V3 launch brought hope for a change in the coming weeks, as it might help increase CAKE’s TVL.

Source: DeFiLlama

Before the launch, CAKE’s price was under the bears’ influence. However, things seemed to have started to change as CAKE’s declining momentum slowed down. According to CoinMarketCap, CAKE was trading nearly 0.4% lower than yesterday. At the time of writing, it was valued at $3.68 with a market capitalization of over $673 million.

Thanks to the relatively better price action, CAKE’s MVRV ratio also recovered slightly on 4 April. Whales’ interest in CAKE also increased as whale transaction counts spiked lately. CAKE’s volume increased considerably, reflecting investors’ interest in trading the token. Another positive development was that CAKE’s weighted sentiments drifted up swiftly, which indicated the crypto community’s confidence in the token. 

Source: Santiment

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

Going forward

The effects of V3’s launch might soon be reflected in CAKE’s chart, as suggested by a few market indicators. The MACD displayed a slight bullish crossover, suggesting a price hike in the near term. PancakeSwap’s Chaikin Money Flow (CMF) also registered a slight uptick and was headed towards the neutral mark, which looked bullish.

However, nothing can be said with utmost certainty as CAKE’s Relative Strength Index (RSI) went down and was resting below the 50 mark. 

Source: TradingView

 

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Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
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