PancakeSwap (CAKE) has emerged as a rising star in the decentralized finance (DeFi) industry; The recent price surge helped the food-themed token become the first billion dollar project on the Binance Smart Chain (BSC).
Data from Cointelegraph Markets and Tradingview show that CAKE’s price is up 520% since hitting a low of $ 1.89 on February 3 to set a new all-time high of $ 11.12 on February 17. This pushed its total market capitalization above $ 1 billion for the first time.
As DeFi has grown in importance with most of the major projects currently operating on the Ethereum network, protocols that are based on other networks, such as BSC, are starting to see an increase in active users looking for a respite from high transaction costs and delayed confirmation times.
The recent decision of the BSC community to lower the gas rate from 15 Gwei to 10 Gwei in response to the rise in the price of Binance Coin (BNB) has further incentivized traders looking for more stability when it comes to transaction costs.
According to the data from Defistation, the total value locked in the PankcakeSwap protocol has continued to rise from $ 150 million on January 23 to a new high of $ 2.477 million on February 17as increases in token values, as well as the addition of new farming opportunities, have led to a rapid increase in total locked value (TVL).
The trading volume on the platform has also seen a steady increase in recent weeks, and the data shows that CAKE is now the second DEX by trade volume, behind Uniswap (UNI).
The bullish momentum in the cryptocurrency market and the rapid expansion of DeFi point to a further increase in transactions on the network for the blockchains involved.. With no end in sight to the high costs of Ethereum transactions and with a growing number of projects positioning themselves as cheaper alternatives, PancakeSwap likely has even greater upside potential as the cryptocurrency sector becomes more popular..