PancakeSwap is expanding its footprint in crypto trading, bringing in another BNB Chain Season. The DEX posted record volumes in May, surpassing its performance from 2021.
PancakeSwap posted record trading volumes in May, as BNB Smart Chain turned into a new venue for airdrops, TGE, and token sales. The DEX became central to Binance’s campaigns, as it carried the trades and launches for Binance Wallet users.
In May, PancakeSwap posted over $173.5B in total volumes, with over 3.1M users. The current results show a larger number of trades per wallet, driven by an inflow of new tokens and point farming. As of June 5, PancakeSwap is carrying Binance’s 21st exclusive TGE, expecting a further boost of activity.
PancakeSwap posted peak volumes in May, rising over $173B, but still not reflected as a price rally for the native CAKE token. | Source: Dune Analytics
Heightened activity continues, on track to make June another strong month for the DEX. PancakeSwap drew in $8.8M in daily fees, surpassing all apps and smart contracts with the exception of Tether. In the past month, trading volumes grew progressively on a weekly basis, showing a clear trend of inflows and a rush to BNB Smart Chain assets. On a weekly basis, PancakeSwap also retained over $4.4M in fees.
The current DEX activity happens with a much lower total value locked, remaining mostly unchanged at $1.7B. Despite this, the DEX still attracts small-scale traders for the hottest tokens.
Build on BNB (BOB) is trending as the top token, making up to 34% of all activity on PancakeSwap V2. V3 is even more active, with $9.2B in reported volumes. PancakeSwap often trades a single top token making over 40% of all volumes, later switching to another asset.
The increased PancakeSwap activity also gets a boost from USD1, the BNB asset of World Liberty Fi, which is now used in meme token pairs.
PancakeSwap still awaits CAKE breakout
CAKE is awaiting a more significant price move, as it still trades below its 2021 peak. The asset has lagged behind, despite the growing activity. CAKE is still seen as a potential breakout based on the DEX popularity. CAKE recovered to $2.49, on the news of being added to Coinbase’s roadmap. There is no fixed deadline on the listing, but some of the roadmap assets have been added relatively quickly to the official market.
CAKE added 2.3% to its price after volatile trading in May, a month of increased wallet activity and peak volumes for the PancakeSwap DEX. | Source: Coingecko
CAKE retains a supply of just 450M tokens, with regular burns. Even with further minting and token incentives, the token will retain a relatively low inflation. CAKE still has a valuation of under $1B, despite the influence of the PancakeSwap DEX, leading to expectations of recovering to a higher market capitalization. CAKE is expected to follow the lead of Hyperliquid, where growing activity translated into token growth.
Despite the DEX activity, CAKE open interest has declined. The token only saw $30M accrued on derivative exchanges. The long to short ratio remains flat for the past week, as traders drew away due to increased volatility. CAKE is not yet breaking out with a clear direction, instead posting short-term unpredictable price moves.
BNB continues to trade at $667.70, remaining relatively flat despite the increased activity and launches on BNB Smart Chain. The network remains one of the most active, though with some worries that the growth is not sustainable and mostly due to special events and incentives.
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