2021-6-18 19:47 |
Binance and Coinbase are centralized cryptocurrency exchanges that are operated by a single corporate entity. By contrast, PancakeSwap CAKE/USD is a decentralized exchange that allows for trading without an intermediary.
It is built on the Binance Smart Chain instead of Ethereum, and this allows it to have much lower trading fees. PancakeSwap is newer and is making waves across the DEXs industry daily, thereby increasing its investment profile.
PancakeSwap is used for BEP-2o tokens that run on the Binance Smart Chain, however, you can bring over tokens from other platforms through what is known as the Binance Bridge as well, where you are essentially “wrapping” them as BEP-20 tokens for use on the DEX. It is built on an automated market maker (AMM) system, that relies on user-fueled liquidity pools to enable the trading of cryptocurrencies.
CAKE catalysts in JuneOn June 4 when CAKE was trading at $19, MXC, a crypto-focused exchange, started mining activities with PancakeSwap.
Fast forward to June 7, we can see that more than 1 million unique active wallets interacted with smart contracts on PancakeSwap. In the span of a week, it raked in more than $278 billion in volume and this helped push the price of cake CAKE up to $19.
On June 15, HUP.LIFE launched the HUP token on PancakeSwap. They are developing the first internationally compliant, copyright-enabled NFT platform with the launch of the token on PancakeSwap.
This shows a huge interest in the PancakeSwap exchange and portrays the level of popularity, active user-base, and new token additions that are added to it on a weekly basis. In fact, we can see a clear timeline of how it grows, when that growth occurs, and what we can expect going forward.
Should you buy CAKE now?New coins continue to be included on PancakeSwap while there have been over a million active wallets that have interacted with it.
On June 17, CAKE was valued at $16 which marks a drop from the $20 level it traded at the beginning of the month. This might be an excellent investment opportunity to buy the dip due to the fact that we have seen it trade above the $40 level in the past.
The prior $40 price point may have been due more to hype than fundamentals. In fact, since peaking, more coins are added to it and a lot more farms are being interacted with. There is no doubt it has gained in popularity and usage and this should translate to a higher price over time.
At the very least, the $20 level is a reasonable price target in the coming months and it might take time for CAKE to recapture the $40 level. There is little doubt it will more than double in size over time, which makes it a worthwhile investment at current levels of around $16.
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