TL;DR
- CAKE, PancakeSwap’s token, rose 92% in a week, driven by new features like Binance’s CAKE perpetual contract and a position manager that improves yield farming.
- The token’s rise followed a period of underperformance, rebounding with integrations for easy crypto purchases and increased rewards for the early launch of Position Manager.
- Amid an overall DEX downturn, PancakeSwap’s proactive feature rollout and Binance Labs’ strategic investment have contributed to its recent growth.
PancakeSwap’s CAKE is among the hottest tokens in the crypto community as it has surged over 92% in the last seven days, making it one of the top gainers in the market.
CAKE experienced an abrupt sell-off in the first few months of 2023 and stagnated throughout the rest of the year. On October 31, CAKE started its rally and broke through the 2.45 level, a price not seen since May.
But what is driving this explosive growth? PancakeSwap has provided several features for its users, including listing the USDⓈ-M CAKE Cake perpetual contract on Binance Exchange, which gives PancakeSwap users a lot of exposure given the size of the Binance community.
Recently, PancakeSwap announced the launch of Position Manager – a collaborative integration between DEX and other protocol partners. The collaboration aims to make capital deployment more efficient by automating liquidity provision; This allows users to earn higher yields than manual yield farming.
The Position Manager feature supports multiple coins and stablecoins including USDT, BNB, BTC and ETH. To incentivize usage, PancakeSwap increased CAKE rewards in the first four weeks, causing the token to rise even further.
In summary, most of this growth can be attributed to the recent work of the PancakeSwap team and its efforts to bring new features to its community and thus promote the use of CAKE. Many of these features have increased accessibility and ease of use. In September, DEX integrated with Transak, a Web3 infrastructure provider, allowing the protocol to enable crypto purchases using debit cards, Google Pay, and other methods through Transak.
PancakeSwap Rises as DEXs Post Positive 1-Month Growth
The volume of top DEXs has been quite dismal throughout 2023. According to data from Coingecko, DEXs recorded new lows every month starting in May, reaching levels not seen since 2020. However, in October we saw an increase in trading volume. The TVLs of most protocols are in the green.
We have seen volumes reach lower levels each month, largely due to a lack of incentives and new features in DEXs (and DeFi as a whole). However, DeFi users are always looking for higher returns, and one of the main sectors that has seen returns above 10% is RWAs, with some RWA-based protocols yielding 10% in APY, while the medium DeFi APY is barely 3%.
The leading DeFi protocols are now stepping up and providing users with new features and tools to benefit from, while incentivizing the use of their respective tokens; By the way, Pancakeswap is one of the fastest growing DEXs.
It is worth noting that CAKE rose 9% in June after Binance Labs made an undisclosed strategic investment.
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