PancakeSwap (CAKE) has become one of the most popular and influential cryptocurrencies. For instance, CoinMarketCap named PancakeSwap the most trending cryptocurrency on 16 March 2022. Conversely, PancakeSwap was CoinMarketCap’s 57th largest cryptocurrency on 21 March 2022.
Impressively, PancakeSwap claims its platform had three million users and processed 43 million trades in the 30 days ending on 21 March 2022. Additionally, PancakeSwap claimed to have $12 billion in staked value, on 21 March 2022. PancakeSwap claimed to offer $4.5 billion in liquidity and a 24-Hour Market Volume of $615.34 million on 21 March 2022.
In contrast, CoinMarketCap gave PancakeSwap a Coin Price of $6.59, a $1.822 billion Market Capitalization, a $4.506 billion Fully Diluted Market Cap, and a 24-Hour Market Volume of $226.862 million on 21 March 2022. They based those numbers on a Circulating Supply of 276.555 million CAKE.
What is PancakeSwap (CAKE)?
PancakeSwap (CAKE) is a protocol and decentralized exchange (DEX) that allows users to buy, sell, and trade tokens on the BNB Smart Chain or Binance blockchain.
PancakeSwap’s key feature is allowing users to swap Binance (BNB) for any other BNB Smart Chain token. PancakeSwap supports the swaps by providing liquidity.
People can use PancakeSwap to swap tokens with no registration or account. They claim PancakeSwap is the leading decentralized exchange on the BNB Smart Chain. Notably, users can trade directly on PancakeSwap through their Wallets.
PancakeSwap users can earn CAKE with Yield Farming by staking LP tokens. They can also earn tokens through the Syrup Pools. Users can earn trading fees with the trading pairs.
How PancakeSwap generates revenue
For example, PancakeSwap’s Initial Farm Offerings (IFO) that allows users to stake new tokens launching on the BNB Smart Chain. IFO speculators can commit to IFO sales and claim tokens. PancakeSwap users can receive annual percentage yield (APY) from the tokens. Users can participate in IFO CAKE pools and IFO Private Sales. Users can claim tokens and achievement.
The IFO 3.1 format allows users to buy into new private sales. PancakeSwap users can participate in both public sales and private sales. They will charge a fee of 0.5% on the sales. The participation fee supports the token burn. Users need to contribute around $10 worth of CAKE to either the public or private sales.
PancakeSwap users can earn APY by providing liquidity through farming or staking liquidity to tokens. In addition, PancakeSwap gives users access to Syrup Pools to earn a High Annual Percentage Return (APR). Users can earn CAKE through the Syrup Pools.
PancakeSwap (CAKE) also supports competitions, including the Binance Fan Token Trading competition that offered $120,000 in prizes. They award prizes by team and top traders.
In addition, the PancakeSwap lottery offers $139,709 in prizes. Users who draw winning numbers can win prizes from the prize pot through the lottery.
In addition, they are Beta-testing a prediction feature for betting on token prices. Ideally, the Prediction feature allows users win money if they correctly predict the rise or fall of the BNB price in five-minute rounds.
PancakeSwap (CAKE) NFT Market
PancakeSwap’s NFT Market allows users to buy and sell nonfungible tokens (NFTs) on the BNB Smart Chain.
The market allows users to trade individual NFTs and NFT collections. Users can create NFT collections for sale.
What Value Does PancakeSwap (CAKE) Have?
I think PancakeSwap (CAKE) could gain enormous value because it operates on the BNB Smart Chain.
The BNB Smart Chain supports one of the biggest and most popular cryptocurrencies Binance (BNB). Notably, CoinMarketCap named Binance the fourth-largest cryptocurrency on 21 March 2022.
CoinMarketCap gave Binance a Market Cap of $65.620 billion, a Fully Diluted Market Cap of $65.620 billion, a Coin Price of $397.41, and a 24-Hour Market Volume of $1.573 billion on 21 March 2022. They based those numbers on a Circulating Supply of 165.117 million BNB, a Maximum supply of 166.117 million BNB, and a Total Supply of 165.117 million BNB.
PancakeSwap itself offers some value. For instance, CoinBase gave PancakeSwap (CAKE) a $6.59 Coin Price, a $1.8 billion Market Cap, and a 24 Hour Market Volume of $276.8 million on 21 March 2022. They based those numbers on a Circulating Supply of 276.7 million CAKE.
Consequently, I consider PancakeSwap (CAKE) an excellent speculative cryptocurrency because it grows as the crypto market grows. However, the reverse is also true; PancakeSwap shrinks when the crypto markets shrink. Notably, Coinbase gives CAKE an all-time high Coin Price of $44.18. PancakeSwap is a speculative token that is not for the feint of heart.