PancakeSwap, a decentralized exchange (DEX) on the BNB Chain, has embarked on an impressive performance recently. The DEX surpassed all other chains to take up the number one spot with $1.639 billion in trading volume recorded over the last 24 hours.
Sparked by the rise in trading volume, the native token of PancakeSwap, CAKE, has also experienced a pump. On the day, CAKE has over 45% price surge with increased activity on PancakeSwap.
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PancakeSwap Outshines Uniswap In DEX Volume
According to DEX analytics on DefiLlama, PancakeSwap has outshined other decentralized exchanges after recording $1.639 billion in trading volume in the last 24 hours. This performance by the DEX, places it above its competitors including Uniswap, which has been outshining it.
The recent performance by PancakeSwap depicts a 11.04% surge over the last week while other exchanges have been struggling. This strengthens the DEX’s dominance as it now holds 30.36% of the market share. PancakeSwap has now reached $54.535 billion in overall trading volume.
As per the data on DefiLlama, the competitors of PancakeSwap are not performing so well. Uniswap, for instance, saw a decline of 17.06% resulting in daily activity dropping to $1.021 billion.
Solana-based Raydium, on the other hand, faced considerable decline amounting to 27.32%. This drop pushed Raydium’s trading volume to $334.98 million over the last 24 hours. Other Solana-based DEXs including Orca and Meteora also recorded declines of 18.94% and 34.55%, respectively. Orca managed $291.18 million in trading volume over the last 24 hours while Meteora recorded $239.52 million in the same period.
The recent explosive growth of DEXs results from growth in interest around liquidity pools together with protocol updates which demonstrate potential for success of specialized DEXs amid marketplace competition.
Factors Contributing to PancakeSwap’s Market Leadership
The recent growth of PancakeSwap can be attributed to Binance receiving a $2 billion investment from Abu Dhabi’s MGX. This investment improved investor confidence in Binance-supported ventures. With its position as Binance’s BNB Chain leading DEX, PancakeSwap has thus received direct benefits from this partnership.
Additionally, the DEX has grown due to the expansion of the Layer-2 integration. The expansion boosted trading volume on the DEX. For instance, the trading volume of PancakeSwap on Arbitrum increased by 3,656% Year-over-Year (YoY) reaching $13.2 billion in 2024.
Furthermore, PancakeSwap extended its trading volume on Base making it rise by 3,539% YoY to $11.6 billion. The DEX’s trading volume on Ethereum also increased by 251% within the same period as BNB Chain experienced a 155% growth rate which led to $268 billion in transactions. By adding multiple chain capabilities the platform has managed to increase its appeal to traders in various ecosystems which has since contributed to its current dominance in the DeFi sector.
CAKE Pumps 45% Amid Increased Trading Activity on PancakeSwap
With PancakeSwap now leading in trading volume amongst all DEXs over the last 24 hours, the price of its native token CAKE has also surged. According to data on Coinmarketcap, PancakeSwap is currently trading at $2.60. This current price level shows a 45.10% increase on the day demonstrating the huge potential for the coin.
Additionally, the trading volume of CAKE has surged by 349.37%. Currently, PancakeSwap has recorded a trading volume of $779.69 million over the last 24 hours. Its current market capitalization stands at $787.27 million with 302.05 million out of the max 450 million coins in circulation.
If PancakeSwap continues its current price performance, the coin could soar further as more investor confidence kicks in. But, failure to hold the current price level could result in a price dip, wiping out the recent gains.
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