PancakeSwap becomes the first billion-dollar project on Binance Smart Chain

PancakeSwap (CAKE) has emerged as a rising star in the decentralized finance (DeFi) sector with the recent rise in prices helping the food token to become the first billion dollar project in the Binance smart chain (BSC).

Data from Cointelegraph Markets and Tradingview shows that CAKE’s price has risen 520% ​​since hitting a low of $ 1.89 on February 3rd, to hit a new all-time high of $ 11.12 on February 17th. This pushed its total market value to over $ 1 billion for the first time.

4 hour chart CAKE / BUSD. Source: TradingView

As DeFi has grown in prominence with the majority of the major projects currently running on the Ethereum network, protocols based on other networks such as BSC are beginning to see an increase in active users seeking relief from higher transaction costs and late confirmation times.

at recent days resolution By BSC community to cut gas fees from 15 Gwei to 10 Gwei in response to the price hike of Binance Coin (BNB), spurring traders looking for more stability when it comes to transaction costs.

Total value is insured on PancakeSwap. Source: frustration

According to data from Defistation, the total value locked on the PankcakeSwap protocol continued to increase from $ 150 million on January 23 to a new high of $ 2.477 billion on February 17 with an increase in symbolic values ​​as well as the addition of new agricultural opportunities that led to a rapid rise in total value. Locked (TVL).

Volume on the platform has also seen a steady rise in recent weeks as data showed that CAKE is now the second-volume DEX index behind Uniswap (UNI).

The highest decentralized exchanges by volume. Source: Quinn Gecko

The bullish momentum in the cryptocurrency market and the rapid expansion of DeFi point to further increases in network transactions for the blocks involved. With no end in sight to higher transaction costs on Ethereum and a growing number of projects positioning themselves as cheaper alternatives, PancakeSwap likely has greater upside potential as the cryptocurrency sector continues to trend.