PancakeSwap arrives on Base: How did CAKE respond?
- The announcement caused PancakeSwap’s social metrics to soar.
- CAKE was down by 4% in the last 24 hours, and metrics remained bearish.
PancakeSwap [CAKE] has been setting up its game of going multichain over the last few weeks, with multiple launches on L2. The latest one was the arrival of the DEX on Coinbase’s L2 Base.
Read PancakeSwap’s [CAKE] Price Prediction 2023-24
Despite this expansion, the price of the native token, CAKE, was not what many expected.
PancakeSwap expands its reach
PancakeSwap recently announced that it has expanded to Base as a part of its latest campaign. This integration will allow users to swap tokens, provision liquidity, and captivate social media tasks to amass loyalty points and unlock exclusive NFTs.
⛵️ Set Sail with @BuildOnBase PancakeSwap on an Unforgettable Adventure!
?️ Join the Traverse campaign and explore our fifth island in the captivating @galxe series.
?? Engage in token swapping, liquidity provisioning, and social tasks to unlock exclusive NFTs.
— PancakeSwap?Everyone's Favorite D3X (@PancakeSwap) August 31, 2023
The campaign went live on 31 August and will run till 19 October. Soon after the news broke, CAKE became a hot topic of discussion in the crypto community. This was evident from the rise in its social volume and social dominance during that period.
Positive sentiment around the token also surged as its weighted sentiment registered a spike.
CAKE investors aren’t happy
Though PancakeSwap’s social metrics soared, the token’s performance on the price front was bleak. According to CoinMarketCap, CAKE was down by nearly 4% in the last 24 hours, pushing it down to the 103rd spot on the list of top cryptos.
At the time of writing, it was trading at $1.24 with a market capitalization of over $264 million.
Regardless, it was pertinent to note that a bearish price volume divergence was noted over the last 24 hours. While the token’s price plummeted, its volume surged by nearly 20%. Not only that, but several other metrics also looked bearish.
Realistic or not, here’s CAKE’s market cap in BTC’s terms
For instance, CAKE’s MVRV Ratio plunged because of the recent price drop. Whale transaction counts also declined over the last week. In fact, at press time, CAKE ranked 37th on the list of cryptos that the top 100 BNB whales were holding in the last 24 hours.
Additionally, after a decline, PancakeSwap’s 1-week price volatility started to gain upward momentum. This increased the chances of a continued downtrend in the coming days.