- PancakeSwap’s total volume nearly reached $15 billion in May.
- Market indicators were bearish and suggested a price decline in June.
On 5 June, PancakeSwap [CAKE] posted a tweet that highlighted the network’s performance in May 2023. The blog not only mentioned updated statistics, but also all major integrations and developments over the past 30 days.
? PancakeSwap May Recap
1/5
? Pancake Protectors
? Trading Reward Program
ℹ️ Market Maker Integration Update
? ENS Domains Integration
? 40.7M CAKE burned, that's $81M
? $14.9B Total Trading Volume
? Learn More: https://t.co/09iGMxj0Rg pic.twitter.com/SSw0vkQVeA— PancakeSwap?Ev3ryone's Favourite D3X (@PancakeSwap) June 5, 2023
Read PancakeSwap’s [CAKE] Price Prediction 2023-24
PancakeSwap in May 2023
As per the official blog, CAKE’s total volume nearly reached $15 billion, with an average daily volume of about $480 million. Burn activity was also high last month, as is evident from the data.
40.7 million CAKE, worth $81 million, was burned last month, with an effective emission rate of 4.57 CAKE/Block.
Apart from statistics, PancakeSwap mentioned that it made certain changes to its Market Maker Integration for Ethereum [ETH].
In response to the latest updates, developers added support for RNDR and FET while ceasing support for assets such as Aave [AAVE], Fantom [FTM], Decentraland [MANA], Maker [MKR], Yearn Finance [YFI], The Sandbox [SAND], UniSwap [UNI], and SushiSwap [SUSHI].
Additionally, multiple farms migrated from PancakeSwap v2 to v3 last month. The blog mentioned that developers successfully migrated six Farms from v2 to v3 in May, including Peel (BUSD), BNBX (BNB), GAL (BNB), ID (USDT), C98 (BNB), and CSIX (CAKE).
PancakeSwap v3’s metrics declined
Though the aforementioned updates looked encouraging. As per Dune’s data, the number of transactions and users of v3 on Ethereum registered a decline. A similar trend was also seen in v3’s performance on BNB Chain [BNB].
However, it was interesting to note that in June, the number of transactions and volume registered upticks on both Ethereum and BNB Chain.
Source: Dune
CAKE took a huge blow
CAKE’s price action last month did not align with investors’ interest as it continuously registered declines. In the last seven days alone, CAKE’s price has plummeted by over 8%. At the time of writing, it was trading at $1.58, with a market capitalization of over $320 million.
CAKE’s MVRV Ratio remained low during the majority of the days last month, thanks to the price drop. Excluding 26 May, the token’s velocity also remained low. However, CAKE’s daily active addresses remained relatively stable.
Source: Santiment
Will June be any different?
Interestingly, positive sentiment around CAKE has increased in the last few days. A change in market sentiment can play a role in changing CAKE’s declining price trend. However, as per Token Terminal, CAKE’s P/S Ratio increased.
An uptick in the metric means that the asset was overvalued at press time, suggesting a further downtrend in coming days.
Source: Santiment
Realistic or not, here’s CAKE’s market cap in BTC’s terms
PancakeSwap’s trend reversal is not likely
Though sentiments around CAKE turned positive, the same is not true for its market indicators. The Exponential Moving Average (EMA) Ribbon displayed a bearish crossover.
The MACD’s findings also complemented those of the EMA Ribbon, minimizing the chances of a sudden northbound price breakout. However, CAKE’s Money Flow Index (MFI) gave much needed hope for a trend reversal as it registered an uptick.
Source: TradingView
