CAKE price plunged to its lowest level since July as concerns about the Binance Smart Chain (Bsc) ecosystem continued. PancakeSwap’s token crashed to a low of $3.50, which was about 35% below the Nov. 8 peak.
Binance FUD concerns
PancakeSwap is one of the largest players in decentralized finance with more than $3.2 billion in total locked value (TVL). At its peak, it had a combined net worth of over $12 billion.
Like Uniswap, PancakeSwap enables decentralized trading of digital currencies. In addition to these exchange tools, the company offers other solutions like an NFT marketplace, a betting platform, and a yield farming solution.
Pancakeswap is the largest dApp in the BNB Smart Chain. The Ethereum and Aptos platforms are relatively smaller. According to its website, it has over 1.9 million users in the last 30 days. It has executed over 55 million trades in the same period and has a stake value of $6.1 billion.
DeFi protocols like PancakeSwap and GMX benefit from the FTX collapse. Many advanced traders are moving from centralized to decentralized exchanges, which are seen as safer options.
DEXes are decentralized, open source and highly transparent networks. Because everything is on-chain, anyone can track transactions in real-time. In addition, CAKE holders participate in its governance.
A key challenge for PancakeSwap is the connection with Binance, the largest exchange in the world. In the past seven days, Binance customers have withdrawn over $7.7 billion in assets amid concerns over a FUD. Analysts believe increased scrutiny could lead to heavy outflows in BNB chains.
On the bright side, PancakeSwap has introduced farming capabilities on Aptos, the new blockchain. The service will allow users to earn CAKE while supporting PancakeSwap by staking LP tokens.
CAKE price prediction
The daily chart shows that CAKE price has declined for the past six straight days as investors worry about the Binance FUD. It has fallen below the 25-day and 50-day moving averages. Most importantly, it moved slightly below the key support level at $3.54, which was the lowest level on November 23rd and August 19th.
The Relative Strength Index (RSI) has moved to the oversold level. Therefore, with stocks falling as well, there are chances that the coin will continue falling as sellers target the next key support at $3, which is around 15% below current levels.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.