In September 2020 the Pancakeswap (CAKE) token was traded for less than US$0.50, now is traded for US$22 reaching a new ATH.
The CAKE token, native to the decentralized exchange PancakeSwap – which is a faster and cheaper alternative than UniSwap – reached a historic value of US$21.78 this Friday, April 9. The total value in the Binance Smart Chain (BSC) also reached a record high, US$25 billion.
Thank you for reading this post, don't forget to subscribe!The platform was launched just six months ago, considering its success, in a comparatively short time, should the decentralized market leader, UniSwap, be concerned?
PancakeSwap is a decentralized platform (DEX) that runs on Binance’s blockchain, the Binance Smart Chain (BSC). It uses an automated market maker (AMM) model to serve trades instead of the order book model that combines buyers and sellers as seen in traditional brokerages.
The Decentralized Finance (DeFi) market is dominated by the Ethereum platform, however, the network’s high rates have made users look for other alternatives, such as PancakeSwap.
PancakeSwap is a copy of UniSwap, with several lines of code still referring to UniSwap.
Some Ethereum enthusiasts classify PancakeSwap as a scam precisely because it is a copy. However, defenders of the source code defend themselves and say it is not a fraud simply because it is a copy of another blockchain.
There are rumors that PancakeSwap is from the creator of Binance, but there is no confirmation of that. Critics of Pancake even, say that the BSC is not a real DeFi, since Binance manages the nodes of the network. This means that the network has a single point of failure. Then again, the real heart of the matter is that users tend to be more concerned with low yields and rates than with decentralization.
PancakeSwap has several additional features that do not exist at UniSwap. Not only is it possible to bet on liquidity provider tokens to earn CAKE, but it is also possible to bet on CAKE to earn more CAKE or other BEP20 tokens (tokens from the Binance network).
Transaction fees at PancakeSwap are paid atBinance Coin (BNB), with each move costing a few cents, a stark difference compared to UniSwap, which charges pornographic fees on Ethereum, reaching an absurd us$60. That’s why PancakeSwap has become attractive to users who make low-value transactions. The high demand for Cake has made the currency appreciate more than 50% in the last 30 days alone.
[mcrypto id=”3441″]
Also in September 2020, at its launch, the CAKE token was traded for less than 0.50 cents, now US$22.
Can PancakeSwap and BSC take over the DeFi market, surpassing Uniswap?
Yes, they probably can, but it is difficult to say for sure, because Ethereum has scheduled updates that could destroy the BSC’s plans, but either way, the cryptocurrency market is not an 8 or 80 market. All platforms can probably flourish together.
