PancakeSwap Surges Despite Crypto Market Downturn
PancakeSwap, the leading decentralized exchange on BSC chain, has seen its value double in the past month, even as most cryptocurrencies experienced a crash. The CAKE token reached $2.80 on Friday, marking its highest point since February 25, and a 145% increase from its lowest level this month.
This growth is attributed to the network’s expanding market share in the DEX industry. According to DeFi Llama, the platform’s weekly volume surged by nearly 60% in the last seven days, reaching $14.1 billion. This boost brought its 30-day volume to $53 billion, surpassing the combined weekly volume of Uniswap, Raydium, Meteora, and Fluid. The surge was driven by the launch of meme coins like Mubarak, Mansa, AOPA, Siren, and AIFlow Token. Though, the sustainability of this surge is uncertain, as it was fueled by these recently launched meme coins. The most notable was Mubarak, which initially surged but has since pulled back, with its market cap dropping from $200 million to $110 million this week. The increase in volume led to a important rise in network fees, with the platform generating almost $120 million in revenue this year, making it the second most profitable DEX after Uniswap.
Despite the positive trend, there are risks. The network’s growth and active addresses have declined. The network growth metric fell from 2,186 to 738, while daily active addresses dropped from 13.6k to 6,020. The CAKE price has moved above the 50-day and 200-day moving averages, indicating bullish control. The CAKE price is expected to hit $3.4, its highest level in February. However, with active addresses and network growth metrics falling, a retreat after hitting the resistance level is possible.
- Weekly volume jumped by almost 60%
- Network fees increased significantly
- Network growth and active addresses have declined
the CAKE price has moved to the strong pivot reverse point of the Murrey Math Lines at $2.73. With oscillators like the Relative Strength Index and the Awesome Oscillator pointing upwards,the CAKE price is expected to rise further.
