- PancakeSwap total transactions surpassed that of the entire Ethereum network last week, recording over 2million transactions in a single day.
- PancakeSwap currently ranks third in the list of the largest decentralized exchanges of the world, after Mdex and Uniswap.
- PancakeSwap also became the top DEX in terms of total collateral value locked with $10.8 billion assets compared to that of 10.2 billion of Uniswap.
PancakeSwap is leading the number of transactions on the Binance Smart Chain (BSC). As per data from BSC Scan, PancakeSwap has had over 2 million transactions in the past 24 hours, compared to the entire Ethereum Network’s 1.55 million. In the same duration, Binance Smart Chain reported seeing a total of more than 9.13 million transactions through its platform, with PancakeSwap contributing to around 20% of the total.
PancakeSwap is a syrupy rabbit-themed decentralized cryptocurrency exchange that refers to the Binance Smart Chain as its home. Considered one of Ethereum’s top competitors, the DEX offers a fast and inexpensive way for customers to swap between cryptocurrency assets by tapping into user-generated liquidity pools. It rewards users who stake its native BEP-20 token called CAKE with SYRUP at a 1:1 ratio, holding which entitles them to 25% of the CAKE emissions distributed proportionally to holders.
What is Behind the Rush?
In a tweet, Binance shared the five biggest Txs contributors behind the record numbers: PancakeSwap, Mdex, Safemoon, PancakeBunny, and Venus Protocol. There can be two stimulating factors behind the surge – first, a notable inclination towards DeFi solutions has been observed, such as BSC and Polygon. These solutions offer the same services as their Ethereum counterparts, but with the added advantage of reduced costs and faster results.
The possible reason is PancakeSwap’s capability of user retention, which has been at the center of the platform’s growth. According to Chef Hops, one of PancakeSwap’s anonymous co-founders, users are finding it hard to return to an environment where they are forced to pay 100 times more on transaction fees alone “PancakeSwap’s main strength has been lucky enough to have an insanely supportive community, in addition to low fees, and a focus on making the most user-friendly, fun experience possible”, they said.
What is Unique About PancakeSwap?
PancakeSwap’s uniqueness lies in the easy entry point it provides to decentralized finance, a domain that is growing at an unprecedented pace in recent times. PancakeSwap is the first billion-dollar project to get launched on BSC, speaking aloud the growing significance of decentralized exchanges. CAKE’s price has skyrocketed by more than 4500% in less than four months of 2021, currently trading at $28.00. The token has gained 17% over the last 24 hours alone.
The recent surge has taken PancakeSwap to the position of the biggest decentralized exchange, speaking in terms of total collateral value locked. Its value stands at $10.8 billion at press time, whereas Uniswap’s $10.2 billion. This has made PancakeSwap the largest automated market maker (AMM) on Ethereum’s blockchain.
“The fact that BSC and PancakeSwap’s daily volumes now regularly exceed that of Etherum-based Uniswap’s volumes shows that cheap transactions and scaling matter,” said Denis Vinokourov, Head of Research at trading sentiment data provider Trade the Chain. With the new changes PancakeSwap plans on introducing soon, users can expect “new product offerings and user incentives/rewards” besides the addition of new ingredients to the existing products.
PancakeSwap recently highlighted that it plans to migrate to Version 2 of its Protocol. This migration, described by Chef Hops as a “fridge full of goodies”, will see the stopping of giving out rewards for the old type of LP tokens, and giving out new ones instead. Users will have more flexibility in voting and deciding on one out of four different fee structures.