Why PancakeSwap (CAKE) surged nearly 100% in two weeks

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PancakeSwap’s CAKE is one of the most popular tokens in the cryptocurrency community. In just 1 week, the token has increased by more than 92%, becoming one of the market’s largest rising tokens.

CAKE suddenly sold off in the first few months of 2023 and remained flat for the rest of the year. On October 31, CAKE price began to rise, breaking through 2.45, which was the highest level since May.

But what’s driving this explosive growth? PancakeSwap has been launching a number of features for users, including listing the Cake USDⓈ-M CAKE perpetual contract on the Binance exchange, giving users more access to the scale of the Binance community.

Recently, PancakeSwap announced the implementation of a location manager – the result of a collaborative integration between the DEX and other protocol partners. The collaboration aims to improve the efficiency of capital deployment by automating the liquidity provision process; in this way, users can achieve higher returns compared to manual “liquidity mining”.

The position manager feature supports multiple tokens and stablecoins, including USDT, BNB, BTC and ETH. To encourage usage, PancakeSwap increased CAKE rewards for the first four weeks, causing the token price to increase further.

In short, much of this growth comes from the recent work the PancakeSwap team has done to bring new features to its community, thereby stimulating CAKE usage. Many of these features improve accessibility and ease of use. In September, DEX integrated with Web3 infrastructure provider Transak, allowing the protocol to allow users to purchase cryptocurrencies using debit cards, Google Pay, and other methods through Transak.

PancakeSwap strengthens as DEX grows by 1 million

Throughout 2023, trading volume on top DEXs has been tepid. DEX recorded new monthly lows starting in May, the lowest levels since 2020, according to Coingecko data. However, transaction volume increased in October, with TVLs in the green for most protocols.

As can be seen, the trading volume reaching monthly lows is mainly due to the lack of new incentives and features in DEX (and DeFi in general).Despite this, DeFi users are always looking for higher returns, and one of the main areas where returns exceed 10% is random weighted average methodsome RWA-based protocols offer 10% APY, and the average APY in DeFi is unlikely to reach 3%.

Leading DeFi protocols are now stepping up their efforts to provide users with new features and tools that will benefit them while also incentivizing the use of their respective tokens. In this regard, Pancakeswap is one of the fastest growing DEXs.

Notably, CAKE rose 9% in June Binance Labs Make undisclosed strategic investments.

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According to Cryptopotato



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