Newton Gitonga
PancakeSwap witnessed remarkable growth over the past few sessions, with its trading activity increasing by nearly 60% within the past week.
The renewed investor and trader optimism saw CAKE gaining over 17% in the last seven days.
The remarkable upside coincided with increased trader activity on PancakeSwap.
The protocol topped decentralized exchange rankings globally with more than $14 billion in seven-day trading volumes.
PancakeSwap Claims Top DEX Position!
With over $14 billion in weekly trading volume and a 58.04% increase, PancakeSwap has overtaken Uniswap as the leading decentralized exchange.
The impressive ecosystem developments saw PancakeSwap dethroning Uniswap as the dominant DEX.
Uniswap suffered an over 50% slump in trading volume, with the metric plummeting to $8.61 billion.
The substantial declines in Raydium, Meteora, and Fluid demonstrate PancakeSwap’s mounting influence in the decentralized exchanges sector.
What’s behind PancakeSwap’s growth?
Various factors contributed to the DEX’s rise. PancakeSwap has been on investor radar since it heralded BNB Chain’s recovery.
The latest meme token trading boom on BSC amplified PancakeSwap’s liquidity, attracting new players.
Moreover, PancakeSwap developers have developed the protocol with new functionalities, including reduced transaction fees, improved staking pools, and yield farming.
Also, PancakeSwap leverages Binance Smart Chain’s cost-friendliness, making it lucrative for small investors and retailers.
That’s unlike Uniswap, which relies on Ethereum’s high gas charges.
Uniswap and Raydium struggle
While PancakeSwap rallied to record highs, Uniswap and Raydium saw faded activity.
Uniswap’s 50.56% decline in trading volume signals a potential shift as participants opt for faster and cheaper solutions.
Nonetheless, Uniswap remains a crucial player in decentralized finance.
It continues to develop L2s such as Optimism and Arbitrum to ensure enhanced speed and lower transaction charges.
On the other hand, Raydium fails to recover despite counter plans to release a meme token generator.
Its trading volume declined by 24.75% in the past week, suggesting faded investor optimism.
Also, Meteora and Fluid recorded 33.03% and 52.76% declines, respectively.
DEX competition: what’s next?
Protocols’ rivalry will likely amplify as the decentralized exchanges’ marketplace matures.
Enthusiasts will watch how the top two DEXs compete.
PancakeSwap aims to democratize the space, leveraging its connection with Binance Smart Chain.
Feature upgrades and strategic collaborations signal a lucrative feature for the DEX.
Meanwhile, Uniswap’s planned expansion to various blockchains and upcoming upgrades could shale PancakeSwap in the coming sessions.
Nevertheless, PancakeSwap’s massive trading volumes confirm its growing influence within the DeFi industry.
With BSC looking to dominate the next meme trading wave, the DEX’s future appears bright.
CAKE price outlook
The surged trading activity kept CAKE afloat as uncertainty dominated the market last week.
It gained more than 17% in the past week to $2.53 at press time.
The robust bullish stance suggests more uptrends for CAKE prices.
However, the slumped 24-hour trading volume signals bull exhaustion after the remarkable surge.
Thus, the alt might dip before extending the current upside.
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