PancakeSwap (CAKE) has emerged as a rising star in the decentralized finance (DeFi) sector with the recent surge in price helping the food-themed token become the first billion-dollar project on the Binance Smart Chain (BSC).
Data from Cointelegraph Markets and Tradingview shows that the price of CAKE has risen 520% since reaching a low of $1.89 on Feb. 3 to establish a new all-time high of $11.12 on Feb. 17. This propelled its total market cap above $1 billion for the first time.
CAKE/BUSD 4-hour chart. Source: TradingView
As DeFi has grown in prominence with a majority of top projects currently operating on the Ethereum network, protocols that are based on other networks such as the BSC are beginning to see an increase in active users seeking respite from high transaction costs and delayed confirmation times.
The recent decision by the BSC community to lower the gas fee from 15 Gwei to 10 Gwei in response to a rise in the price of Binance Coin (BNB) has further incentivized traders who are looking for more stability when it comes to transaction costs.
Total value locked on PancakeSwap. Source: Defistation
According to data from Defistation, the total value locked on the PankcakeSwap protocol has continued to increase from $150 million on Jan. 23 to a new high of $2.477 billion on Feb. 17 as increases in token values as well as the addition of new farming opportunities has led to a rapid rise in the total value locked (TVL).
Trading volume on the platform has also seen a steady rise in recent weeks with data showing that CAKE is now the second-ranked DEX by trading volume behind Uniswap (UNI).
Top decentralized exchanges by trading volume. Source: CoinGecko
Bullish momentum in the cryptocurrency market and the rapid expansion of DeFi point to further increases in network transactions for the blockchains involved. With no end in sight for high transaction costs on Ethereum and a growing number of projects positioning themselves as cheaper alternatives, PancakeSwap likely has even more upside potential as the cryptocurrency sector continues to go mainstream.