PancakeSwap leads DEX market, but can it eat its CAKE too

• PancakeSwap tops the list of DEXs with the highest daily active users.
• CAKE struggles to sum up bullish volumes as bears lose momentum.

PancakeSwap has recently emerged as the market’s leading DEX by the number of daily active users. Ergo, the question – Is this enough to support a sentiment shift among CAKE holders?

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According to CoinMarketCap, PancakeSwap recorded 110,900 active addresses in the last 24 hours alone. This number is roughly double the number of daily active users registered by Uniswap, the DEX ranked 2nd. In the grand scheme of things, the ranking is a fair indicator of demand for PancakeSwap’s DEX amid slow market conditions.

Is this favorable ranking enough to change CAKE’s current trajectory? While the milestone underscores healthy demand for the network, this may not necessarily translate into strong demand for PancakeSwap’s native token.

CAKE’s value has been declining since 9 February. In fact, it has so far tanked by 21% to its $3.72 press time price. As a result, it has given up roughly half of the gains it achieved since the start of 2023.

Source: TradingView

So far the price has demonstrated some bearish weakness over the last few days during which it struggled to push down further. Its money flow indicator, at press time, was in oversold territory, one where outflows have notably slowed down.

In fact, the price seemed to be approaching a key support zone between the $3.61 and $3.63-price range.

CAKE bulls tire, but demand is yet to start flowing in

Some of PancakeSwap’s on-chain metrics revealed some interesting observations that may influence the next price move. The weighted sentiment metric, for instance, recorded an overall uptick in the last 7 days, confirming that investors have been switching to a bullish bias.

Source: Santiment

Weekly volume is down slightly on average, confirming that the bearish trend is losing momentum. The volatility metric perfectly highlights this. It slowed down in the first week of March, confirming that the bearish momentum has been stalling.

How many are 1,10,100 CAKEs worth today

Perhaps the metric that stands out the most as far as CAKE is concerned is the supply distribution.

Most of the top whales have been trimming their balances over the last 4 weeks. However, the same metric also recorded flatlined buying or selling activity.

Source: Santiment

The aforementioned observation resonates with the slowdown in sell pressure over the last few days. Perhaps, this is an indication that the bears are exhausted.

The common expectation is that bulls would swoop in and trigger some relief. The prevailing market FUD and concern among investors might be the reason why this has not happened. Not yet, anyways.