PancakeSwap Analysis: Shaping the Future of Multi-Chain DEX (2024 - 07/2025)
Data updated to 07/2025 and is just basic information about the project to help easily assess fundamentals โ Not investment advice ๐
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๐ Project Overview
@PancakeSwap is a leading decentralized exchange (DEX) launched in 2020 on BNB Chain, using the AMM (Automated Market Maker) model to support BEP-20 token trading. From 2024 to 07/2025, PancakeSwap expands to Ethereum, Arbitrum, Base, Solana, zkSync, Linea, and Polygon zkEVM, with PancakeSwap V3 providing concentrated liquidity, low fees (0.01%-1%), and capital efficiency up to 4000x compared to V2. Total value locked (TVL) exceeds 2.3 billion USD, affirming its top DEX status.
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๐ Important Milestones
- April 2024: Launching PancakeSwap V3 on Solana, supporting transaction fees as low as 0.01%.
- June 2024: Announcing Kitchen Report, recording cross-chain swaps integration, distributing 1.9 million $ZK, and burning 610K CAKE (-1.39 million USD).
- July 2024: Collaborating with @SolanaFoundation, organizing AMA and Solana Summer campaign with a prize of 1,000 USDC.
- October 2024: Deploying Position Manager, automatically reinvesting fees and rewards, reducing impermanent loss risk.
- December 2024: Launching Binance Alpha Trading Competition with @binance, a prize of 250,000 USD for trading pairs like $BR, $MILK.
- July 2025: Expanding integration with @Tevaera, focusing on on-chain gaming.
- In 2025, PancakeSwap had a successful year when Binance launched Binance Alpha, helping Pancake's volume continuously surpass ATH and set trading records.
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๐ค Strategic Partnership
- @binance: Integrating CAKE into Binance Pay and supporting IFOs, campaigns like Binance Alpha Trading.
- @SolanaFoundation: Supporting PancakeSwap V3 on Solana, boosting DeFi and gaming.
- @chainlink: Integrating Data Streams and Automation on Arbitrum for prediction markets.
- @Tevaera: Collaborating on on-chain gaming development, enhancing community interaction.
- @Bedrock_Defi: Supporting multi-asset restaking, simplifying staking innovation.
These partnerships help PancakeSwap expand multi-chain, increase liquidity and applications in DeFi and gaming.
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๐ฐ Tokenomics & Current Price
- Token: CAKE (BEP-20), used for governance, staking, and yield farming.
- Total supply: Unlimited, but the "Ultrasound CAKE" model (from 04/2023) burns over 102% of CAKE minted weekly, shifting to deflationary.
- Mechanism: Transaction fees (0.17% to liquidity providers, 0.03% to treasury, 0.05% burned). Stakers of CAKE receive fees and boost IFOs.
- Current price (07/2025): ~2.4 USD, market cap ~849 million USD, 24h trading volume ~98.14 million USD.
- All-time high (ATH): ~43.96 USD (April 2021).
- All-time low (ATL): ~0.19 USD (September 2020).
CAKE price increased by 5.2% in 7 days but is lower than the overall market (+8.9%) and Ethereum ecosystem (+12.7%).
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๐ Revenue & Profit
According to DeFiLlama, PancakeSwap reported annual revenue of about 42 million USD from transaction fees (0.25% on V2, 0.01%-1% on V3) and products like Syrup Pools, IFOs. Revenue is distributed to liquidity providers, treasury, and CAKE burning program. PancakeSwap does not disclose specific profits due to being a decentralized protocol. The project raised 1.8 million USD through funding rounds. TVL reached 2.3 billion USD, with 0.17% of transaction fees paid to LP, 0.03% to treasury, and 0.05% for buyback-and-burn.
This is third-party data, sometimes there may be inaccuracies for various reasons, possibly from the project, changes in the project, or API errors, so please refer to it only.
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๐ Products & Technology
- PancakeSwap V3: Concentrated liquidity, capital efficiency up to 4000x, flexible transaction fees (0.01%-1%).
- Position Manager: Automatically reinvests fees and rewards, reducing impermanent loss.
- Syrup Pools: Staking CAKE to receive new project tokens, with fixed-term staking maximizing yields.
- IFO (Initial Farm Offerings): Supporting new projects to raise funds using CAKE-BNB LP.
- NFT Marketplace & Lottery: Increasing user interaction through NFTs and CAKE lottery tickets (10 CAKE/ticket).
PancakeSwap's technology stands out with AMM, multi-chain smart router, and user-friendly UX.
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๐บ Future Plans (Roadmap)
- Q3-Q4 2025: Expanding to new chains, improving cross-chain swaps.
- Gaming Focus: Developing on-chain gaming with @Tevaera and SuiPlay0X1.
- Prediction Markets: Enhancing integration with @chainlink Data Streams.
- Community Growth: Organizing more trading competitions and IFOs with @binance.
- Deflationary Model: Continuing to burn CAKE to reduce supply and increase token value.
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๐ Opportunities
- Multi-chain: Supporting BNB Chain, Solana, Ethereum, Arbitrum, increasing accessibility.
- Strong liquidity: TVL 2.3 billion USD and smart router optimizing transactions.
- Large community: 1.98 million followers on X, reflecting strong support.
- Deflationary token: Burning over 102% of CAKE minted, increasing long-term value.
โ Challenges
- Fierce competition: Competing with Uniswap, SushiSwap, and Curve.
- Price volatility: CAKE price dropped 94.6% from ATH, high market risk.
- Legal issues: Turkey's SPK blocked access to PancakeSwap due to unauthorized activities.
- Liquidity risk: One coin accounts for 40% of trading volume, raising sustainability concerns.
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๐ฏ Conclusion
@PancakeSwap is leading the DEX space with PancakeSwap V3, multi-chain integration, and the deflationary CAKE model. From 2024 to 07/2025, the project launched on Solana, collaborating with @binance, @SolanaFoundation, and @chainlink. Despite facing competition and legal issues, PancakeSwap has the potential to shape the future of DeFi and gaming thanks to advanced AMM technology and a strong community. ๐
#PancakeSwap #defi #Web3#Cake #Crypto
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References:
- PancakeSwap Official Website
- PancakeSwap X Posts
- CoinMarketCap
- CoinGecko
- Blogtienao
- DeFiLlama