Last month witnessed the unprecedented surge in the DeFi exchange CAKE token price, boosted by the steady trading volume and an increased burn rate for the token.
Following its listing on the Binance exchange platform, the PancakeSwap coin made the headlines and has continued to perform steadily since after the event. Listing the token on Binance appears to add more visibility, hence the increased value and interest it has continued to attract.
The PancakeSwap digital currency is the first DeFi project listed on the Binance platform that supports trading the BEP20 token. As a result of the price surge, the token’s total value locked (TVL) jumped to almost $1 billion the previous month, positioning Pancake as the 10th largest DeFi platform, as revealed by DeFi Llama.
Rising Trade Gains and Burn Rate
The weekly statistics for the Pancake exchanges point to a 22% increase in transaction fees which translates to $3.7 million, indicating a high level of activity on the platform. Additionally, 13 million CAKE worth $21 million were also burnt in the past two weeks.
Pancakes’ adoption has been steadily rising since the listing on Binance. The uptrend also plays robust support to the price of the CAKE coin, which has boosted trading and served as an incentive to liquidity deposits on the platform.
Interestingly, there was also an increase in the average daily growth of the CAKE token, which shot up to $200 million following the Binance integration. As per data from WhaleStats, the CAKE coin is the 12th most possessed token on Binance.
However, the previous month’s strong performance is not enough to forest any slump as the token is further down to 76%, following the last high of $46, which was attained in April 2021.
Probable DeFi Rebound Imminent
The high interest in DeFi exchange services reached the roof last month, with platforms like Pancake experiencing an upward trend in double digits in their TVL in March.
Devi’s popularity is because it offers higher returns than the conventional savings account most people are used to, which makes it gain more in the wake of the crypto market recovery that has enveloped the industry in the heat of the Russian-Ukraine war.
The conflict has had no negative impact on the value of DeFi products, even as the crypto market briefly shrinks due to the global financial instability that has affected prices in every need.
TVL in the DeFi ecosystem has been on a consistent uptrend in the past two months, with a market valuation of $175 billion and is on the verge of surpassing the all-time high of $188 billion. Pancake’s chance of performing better than the current value is high, considering the DeFi space’s potential for expansion and price consolidation.
Nonetheless, there are considerable hiccups on the way and overcoming any hurdles in the market would surely position DeFi and, by extension, Pancake as a force to reckon with in the crypto industry.
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