A deeper look into PancakeSwap – Will CAKE price surge upwards?
Decentralized finance, or DeFi, is making great progress in providing reachable, transparent, and inclusive access to money for all, and PancakeSwap is without a doubt one of the most intriguing projects to emerge from this space. PancakeSwap is a decentralized exchange (DEX) built on the Binance Smart Chain (BSC) blockchain that has made its name for one of the most powerful dApps on BSC since its launch in September 2020.
In this article, we will discuss briefly on PancakeSwap’s price history, price forecasts for 2021, and beyond in detail. Finally, you will have a clear understanding of where CAKE is headed in the near future and whether it’s the right investment for you.
What is PancakeSwap (CAKE)?
PancakeSwap is a Binance Smart Chain-powered decentralized exchange (DEX) and automated market maker (AMM) that enables traders and investors to quickly and securely exchange BEP-20 tokens. In the same way, Uniswap does, the platform offers a shared exchange experience for liquidity pools. PancakeSwap is the most popular Dapp on the Binance Smart Chain, and many crypto analysts consider it to be a project of limitless potential.
On September 1st, 2020, the Binance Smart Chain was released on the market. This fourth-generation blockchain was created in order to operate alongside Binance Chain. We should take into consideration that the BSC is far more developed and advanced than its previous chain. To put this into perspective, the platform can facilitate transactions that are both quicker and less expensive. The network has ultra-high efficiency and can generate a block every three seconds.
PancakeSwap functions with an automated market maker (AMM). Although you can trade digital assets on the website, there isn’t an order book where you’re paired with someone else. In this case, you trade against a liquidity pool. These pools are big piles of money put together from other buyers. They put them into a pool in exchange for liquidity providers, or LP tokens. They will then redeem their share, as well as a part of the trade costs, from certain tokens.
PancakeSwap plays an important role right now as it provides a solution to a number of problems that currently affect the market. Pancake Swap has established itself as a viable alternative to Uniswap, the current DeFi, and DEX pioneer, thanks to its creative approach and dedication to security. CAKE is Pancake Swap’s native token, and users can use it to exchange, add liquidity, farm, stake, yield, and win CAKE tokens in a lottery.
PancakeSwap (CAKE) Price Analysis
PancakeSwap has yet to hold an ICO for its native currency CAKE since it’s a relatively young token. Because it’s still in its beginning stages, empirical evidence on its price is minimal.
According to Coinmarketcap, Pancake Swap began its journey in the crypto world on September 29th, 2020 with a trading value of $1.37. Within only a few days, the token had plummeted to $0.47 but had managed to maintain itself at $1.09 up until mid-October. After a bearish period, the currency unexpectedly fell to $0.22 following early November. After that, the price slowly began to rise and improved over the year, hitting $0.58 at the end of December.
Then, the bulls got a hold of the market. After the beginning of 2021, Pancake Swap’s market capitalization increased by around $3.6 billion. On February 19th, 2021, CAKE prices soared to $19.5. Since the beginning of the year, it has increased by over 1,500%.
On April 12th, CAKE reached its new all-time high of $28.28 according to Coinmarketcap. A total of 154,593,417 CAKE tokens are in circulating supply with a total market cap of $3.5 billion, placing the coin as 44th on market ranking.
With CAKE currently trading at $22.94 at the time of writing, where does PancakeSwap go from here? Let’s take a look at some of the price predictions set out by various analysts for PancakeSwap (CAKE).
PancakeSwap (CAKE) Price Prediction
CAKE had restored a price of $0.61 at the beginning of 2021. Then, when the bulls gained control of the market, the coin began to rise. Since it is a token based on Binance, the world’s largest exchange, the price is expected to rise this year. If it works hard to improve the platform, it could hit a high price of $60 according to different sources. The token’s price is expected to reach $80 by the end of 2021.
WalletInvestor on the other hand provided a more rational forecast, predicting an average price of $51 by the end of 2021. Similarly, according to DigitalCoinPrice, the average price of Pancake Swap may be $28.37 by the end of 2021. FXStreet predicted a Pancake Swap (CAKE) price of $21.70 in March, and at that time, CAKE was trading around $12 with resistance at the $13 mark.
While a quick glance at various technical analyses may show that CAKE is expected to have a bearish future, it’s important to note that the price projections are limited to different technical factors. On top of this, there isn’t much technical data available on which to form a solid foundation in the first place.
Strong fundamentals are a big part of organic development with cryptocurrencies and Pancake Swap’s platform has a lot of potentials to bring more to would-be DeFi, so it’s difficult to take these numbers simply at face value.
Long-term Price Predictions for Pancake Swap (CAKE) 2022, 2023, 2024, and 2025
What are the predictions for PancakeSwap in the next five years according to crypto experts? Let’s take a closer look. It’s possible that 2021 may not be the time to invest, or maybe it’s your lucky shot in a million. Some may say that it needs more time to develop seeing as it has only entered the market so recently. Maybe waiting until 2022-2025 to see what happens with rates will be more worthwhile.
Pancake Swap may be headed for a fun bull run in 2022, according to Coinpedia. If CAKE introduces new liquidity pools and attracts more participants, the price is expected to rise. The token’s exchange value could reach $150 by the end of 2022. Additionally, in the next five years, CAKE is expected to be a much-needed decentralized exchange as DeFi grows. It may be listed in the top 30 cryptocurrencies, and it may excel in grasping investors’ and traders’ attention. It had the potential to get ahead of other exchanges by improving its platform. Coinpedia predicts that the peak of CAKE could reach $280 until 2025.
It’s impossible to predict the future, but Pancake Swap might still be in a make-or-break situation by now. Decentralized finance is without a doubt the way the masses will use financial services in the future. It’s just a question of when the future will arrive, and how big of a role Pancake Swap will play in it. Their ambitions are big, but a solid foothold is necessary for an increasingly growing and competitive market.
What Potential Factors Can Affect the Price of CAKE?
Prices change rapidly when it comes to crypto, and it’s critical to understand what factors influence market changes, particularly when evaluating forecasts. PancakeSwap has come to power as one of the most popular DeFi sites, and its Binance Smart Chain implementation makes it a liquidity magnet when compared to competitors such as Uniswap and Sushiswap.
According to CoinTelegraph, there’s a high correlation between higher gas fees on Ethereum and activity on Pancake Swap.
Due to multiple cross-chain bridges and low transaction costs, Binance Smart Chain emerged as an available alternative when Ethereum fees were skyrocketing. Pancake Swap is the Binance Smart Chain’s biggest and most developed DEX, so it benefits from the growth of new users as well as Binance’s strong user base. Binance’s massive ecosystem according to analysts at Delphi Digital, is another huge factor boosting CAKE, as it has a “vast network impact” as the largest crypto exchange that’s traditionally the first option for retail traders.
They also mentioned token economics as a key factor in Pancake Swap’s future growth. There’s no hard cap on the supply of CAKE tokens, unlike UNI and SushiSwap. This gives the platform the ability to execute targeted vampire attacks in order to attract liquidity and incentivize ventures to launch on Pancake Swap’s AMM. Despite CAKE developers’ numerous deflationary steps, net emission is nearly 1,000,000 CAKE each week, which translates to 37% actual annual inflation.
With this, Pancake Swap declared a governance vote to adjust the emission schedules and reduce the amount of CAKE per block. This will continue to hold inflation at bay while still preserving the project’s vampire attack capability in the long term.
What’s Next for PancakeSwap (CAKE)? What to Expect in 2021?
PancakeSwap, like every other DeFi protocol, has its own set of risks. Binance Smart Chain, however, is capturing the hearts of both CeFi and DeFi users because of its stability and security. Pancake Swap adds all of Uniswap’s features to Binance Smart Chain, minus all the costs.
DeFi protocols are bringing in a huge amount of money also. In addition, almost all of these platforms are under two years old. Binance Smart Chain is a revolutionary modern DeFi network that’s produced a number of promising programs, including PancakeSwap.
The DEX now has access to a large network of assets to trade, as well as a flexible and high-throughput platform with low fees. We can expect a rise in demand for Pancake Swap if Ethereum’s scalability and high gas fees issues remain, which may be bullish for CAKE as well. You can get an idea of CAKE’s potential future price by simply looking at its volumes, which have climbed over 306% in less than a month at the time of writing. If CAKE’s price rises in sync with its volumes, the prices could be well aligned to soar to new heights within the coming months.
Is Pancake Swap (CAKE) a Good Investment?
It’s critical to consider cost and reward when determining if PancakeSwap (CAKE) is a good investment for you. We can forecast the price of CAKE in both the short and long term, but goals for both must be realistic. Based on the basics of the Pancake Swap project and the strides the Team is making against their roadmap goals and objectives, CAKE may very well grow in the long run.
The cryptocurrency market is highly unpredictable and difficult to forecast, so studying Pancake Swap’s dynamics and success is critical before committing to spending some sum of money for the long term with the intention of holding for months or years.
- PancakeSwap is a decentralized exchange (DEX) built on the Binance Smart Chain (BSC) blockchain.
- CAKE is Pancake Swap’s native token, and users can use it to exchange, add liquidity, farm, stake, yield, and win CAKE tokens in a lottery.
- After the start of 2021, Pancake Swap’s market cap increased by around $3.6 billion and CAKE reached its new all-time high of $28.28 on April 12th.
- If CAKE introduces new liquidity pools and attracts more participants, the price is expected to rise in the next five years.
- It may be listed in the top 30 cryptocurrencies by 2025
- According to CoinTelegraph, there’s a high correlation between higher gas fees on Ethereum and activity on PancakeSwap.
- Pancake Swap is the Binance Smart Chain’s biggest and most developed DEX, so it benefits from the growth of new users as well as Binance’s strong user base.
- There may be a rise in demand for Pancake Swap if Ethereum’s scalability and high gas fees issues remain, which may be bullish for CAKE as well.