Here’s why PancakeSwap’s CAKE price is going up $CAKE
PancakeSwap PancakeSwap
CAKE
14.1i%
PancakeSwap jumped to a high of $2.80 on Friday, its highest point since February 25, and 145% above its lowest level this month.
This surge happened as the network continued gaining market share in the DEX industry. According to DeFi Llama, PancakeSwap’s weekly volume jumped by almost 60% in the last seven days to $14.1 billion. This increase brought its 30-day volume to $53 billion. Its weekly volume was higher than that of Uniswap, Raydium, Meteora, and Fluid combined.
The soaring PancakeSwap volume led to a big increase in network fees. According to TokenTerminal, it has made almost $120 million in revenue this year, making it the second most profitable DEX in the industry after Uniswap. #Uniswap’s Still, it is unclear whether the volume surge will continue because it was driven by recently launched meme coins in the ecosystem. The most notable one was Mubarak, whose token surged and then pulled back. Its market cap has dropped to $110 million from $200 million this week.
Other top BSC chain meme coins were Mansa, AOPA, Siren, and AIFlow Token. In most cases, these meme coins jump and then crash as insiders sell. As such, as it happened with Solana (SOL) DEXes, there is a likelihood that the PancakeSwap volume may be short-lived.
The other risk for the CAKE price is that the network growth and the number of active addresses have dropped. The network growth metric moved from 2,186 on March 17 to 738, while daily active addresses dropped from a weekly high of 13.6k to 6,020.