PancakeSwap (CAKE) has become a rising star in the decentralized economy (DeFi) sector, and the recent rise in prices has helped the food-themed icon become the first multi-billion dollar project in the Binance smart chain (BSC).
Data from Cointelegraph Markets and Tradingview shows that CAKE’s price has risen 520% since hitting a low of $ 1.89 on February 3 and hitting a new all-time high of $ 11.12 on February 17th. As a result, her total market value has exceeded $ 1 billion. for the first time.
Since DeFi has appeared in most of the pioneering projects currently running on the Ethereum network, other network-based protocols such as BSC are seeing an increase in active users looking for deferrals from higher transaction costs and confirmation delays.
The recent decision by the BSC community to cut gas fees from 15 Gwei to 10 Gwei in response to the price hike of Binance Coin (BNB) has spurred traders looking for more stability in terms of transaction costs.
According to Defistation, the total value confined to the PankcakeSwap protocol continued to rise from $ 150 million on January 23 to a new high of $ 2.477 billion on February 17 as a result of an increase in token value as well as the addition of new farming opportunities. Led to a rapid increase in Total Value Banned (TVL).
Volume on the platform has grown steadily in recent weeks, as data shows that CAKE now ranks second in the DEX rankings after volume after Uniswap (UNI).
The bullish momentum in the cryptocurrency market and the rapid expansion of DeFi points to another increase in the blockchain network transactions in question. With the exception of higher transaction costs on Ethereum and the growing number of projects positioning themselves as cheaper alternatives, PancakeSwap is likely to have greater growth potential as the cryptocurrency sector continues to turn into the mainstream.