CAKE records promising growth, but warning signals remain
- 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.
😤 15 most used dApps on BNB Chain 😤
Together, they've amassed over 2.18 million monthly users. Our top three dApps are:
Read below for the entire list! ⤵️https://t.co/9YYerCecmL pic.twitter.com/NsVQYq9z0f
— BNB Chain (@BNBCHAIN) February 23, 2023
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.
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.
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.
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.