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PancakeSwap surpasses BNB Chain’s revenue in August

2min Read

An increase in fees generated has helped PancakeSwap surpass the revenue of its host, BNB Chain. However, some downsides remain on PancakeSwap’s end.

PancakeSwap news

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  • PancakeSwap’s 30-day revenue was higher than BNB Chain, thanks to numerous integrations.
  • The project’s network growth and active addresses decreased from July highs.

PancakeSwap’s [CAKE] monthly revenue surpassed that of BNB Chain in the last 30 days, according to a post by glebk.eth. From the post shared by the research analyst, BNB Chain’s 30-day revenue was $931.700 on 7 September. PancakeSwap’s revenue was higher, however, with $970,800 during the same period.

 


Realistic or not, here’s CAKE’s market cap in BNB’s terms


In the blockchain business model, projects gain revenue in different ways. But most make money from fees paid by users to the protocol. And to put it to use, validators who help run the network get paid.

There are others, like the token holders, who get a piece of the pie for burning tokens.

More integration, more fees

Interestingly, PancakeSwap operates on the BNB Chain since the latter offers lower transaction costs to enable users to swap tokens, unlike the fees of Ethereum [ETH].  

According to Token Terminal, fees generated by PancakeSwap, as of 6 September, was $96,237. This was much higher than the value the day before, meaning there was an increase in user transactions.

PancakeSwap monthly fees

Source: Token Terminal

However, that is not the only factor that has helped PancakeSwap surpass BNB Chain. In August, the projects partnered and integrated with others, which experienced a surge in network activity. 

First, PancakeSwap integrated with Linea, the Ethereum optimistic rollup and L2 project. A few days later, the popular Automated Market Maker (AMM) announced its collaboration with Coinbase’s L2 network Base.

The Base integration seemed to be the icing on the cake, especially as the project enjoyed a considerable increase in utility and hype. 

Some Pancakes are down the drain

Despite the hike in DEX volume and revenue, PancakeSwap’s network growth has not been impressive.

Network growth measures the number of new addresses interacting with a network. When the metric increases, it means the adoption of the project has increased. However, a decrease in the network growth suggests a loss in traction.

Therefore, PancakeSwap’s network growth condition suggested that new addresses have refrained from making transfers or swapping tokens on the network. Active addresses on the network were not better either.

Unlike network growth, active addresses indicate the daily level of crowd interaction. So, an increase in the metric suggested that a lot of distinct addresses participated in transfers on the network.


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


A decrease in active addresses meant that speculation around assets on the network had reduced at press time.

PancakeSwap monthly growth and active addresses

Source: Santiment

At the time of writing, PancakeSwap’s 30-day active addresses were down to 63,900. This means that there were fewer users who either sent or received tokens on the chain compared to July.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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