While Ethereum topped the decentralized platform not only in terms of Total Valued Locked(TVL) but GAS Fees, yet a strong competitor emerged on Binance Smart Chain(BSC). Pancake Swap is a DEX much similar to Uniswap on Ethereum but built on BSC. Pancake swap aims to offer faster transactions with lower fees.
The growing adoption of the DEX also led the price of its native token CAKE on fire.
Pancake swap coin is an Automated Market Maker(AMM) and a decentralized finance (DeFi) application. CAKE coin price surged more than 12000% during the 2021 bull run and smashed its ATH around $47.6. Despite a huge drain, the asset is expected to recover the losses very soon.
How & When Pancake (CAKE) Came Into Existence
Pancake Swap was created by a group of anonymous developers in September 2020, on Binance Smart Chain, discarding the Ethereum platform. The DEX platform was launched at the times when DeFi tokens were undergoing a gigantic rally and Ethereum-based DEX were agonized with slower transactions & spiking Gas fees.
The platform along with faster transactions & lower fees offers lower swap fees too. Following its low-fee model, the platform offers 0.2% swap fees against the market standards of 0.3%. The attractive features led to rapid growth not only in terms of trade but also in the TVL. At times, the volume on Pancake also surpassed the most popular ETH-based DEX Uniswap.
Will Pancake Swap(CAKE) Touch $100 by 2021
The inception to trade for CAKE was not as kick-starting as most of the other tokens. The DeFi token had to wait for some time to gain some trust from the retail traders. As the traders were frustrated with the rising gas fees. It was during the initial 2 days of February 2021, when the asset began with its bull run. The rally that traded below $1 ascended high to hit its ATH at $44.18.
The May crash that impacted the entire crypto space also dragged the Pancake swap coin price close to $10. Yet the token reversed the bearish trend after a small consolidation and attempted to range high towards the current highs. Woefully since the beginning of September 2021, the CAKE price began to consolidate for nearly a couple of months and finally toppled down into a bearish trap.
The zones around $10.5 to $11 are pretty crucial that may decide the direction of the next price direction. At the press time, the CAKE price is very close to these levels and hence a retest is quite possible. The Pancake swap price needs to rebound firmly without slicing through these levels and rise beyond $20 to confirm an uptrend. By the end of 2021, the price is expected to attain these levels to head towards the next resistance close to $30.
Factors Affecting Pancake Swap(CAKE) Price Today
Pancake swap has showcased tremendous growth ever since its inception. Moreover, in the times when the Non-Fungible tokens (NFT) space is booming in the crypto space, the DEX has entered the space. Pancakeswap has launched an NFT marketplace recently and all the fees would be used to buy back and buy CAKE coins.
The interesting part is the users who wish to mint or create NFTs here are required to hold CAKE coins. This may increase the demand for the CAKE token and eventually coil up the price. Moreover, the developers are reportedly working on Phase-2 of the NFT marketplace to enable the buy and sell of the third-party BSC NFTs.
Considering the technicals on the Pancake swap price chart, both the RSI and MACD are visiting lower levels and hence a nice flip could be on the corner. With the flip, the indicators may point out a bullish trend as the selling appears to have eased out a little.
Where to buy Pancake Swap (CAKE) Token?
As the asset gained mainstream adoption, DeFi’s reach was extended beyond DEX platforms. Most of the popular exchanges listed the token in no time. Above all, CoinDCX offers a unique user experience, hassle-free trade at affordable prices. To start investing in Pancake Swap, all you need to do is download CoinDCX mobile app on your smartphone.
Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.