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      PancakeSwap – Is CAKE’s future bright? - Stocks Telegraph

      By Muskan

      Published on

      August 19, 2021

      9:16 AM UTC

      PancakeSwap – Is CAKE’s future bright? - Stocks Telegraph

      PancakeSwap is very similar in its working to Uniswap. It has proven to be a strong competitor to Uniswap – the original decentralized exchange. It is, essentially, a decentralized application that decentralizes the processes of exchange. In other words, PancakeSwap is an automated market maker. It eliminates the needs of centralized exchanges and completely automates the process of trading. Through decentralized exchanges, users can trade tokens while liquidity is provided through yield farming.

      PancakeSwap vs. Uniswap

      Uniswap is based on Ethereum’s blockchain, PancakeSwap operates on Binance Smart Chain. Ethereum is the obvious choice for DEXs as it is the hub of dApps and DeFi and PancakeSwap was not expected to beat Uniswap but the recent performance of the exchange has surpassed that of Uniswap. Ethereum’s popularity has its disadvantages as the applications on its network suffer from higher fees – which is eliminated by BSC’s PancakeSwap.

      However, being based on Binance Smart Chain, it majorly operates in BEP-20 tokens. However, it is not just limited to BEP-20 tokens as tokens from other platforms can be exported through Binance Bridge and utilized as BEP-20 tokens on the exchange.

      Uniswap is the eleventh largest cryptocurrency in the market while PancakeSwap stands at thiry-first. CAKE has surpassed UNI in terms of trading volume multiple times; however, it has not been able to maintain its footing – making it much more volatile. Although, in terms of Total Value Locked, Cake has defeated UNI with a TVL of $5.5 billion while UNI stands at $4.7 billion.

      What is the future of CAKE?

      PancakeSwap has been on an uptrend since the end of July. The cryptocurrency has been highly volatile but the upward trajectory has been held so far. At the time of writing, CAKE was trading hands at $20.89 apiece. The daily performance has been indicating towards corrections amidst the uptrend. The cryptocurrency fell by 3% in the past twenty-four hours while the daily trading volume has declined by nearly 15%. However, the overall weekly performance has been an increase of 8%.

      The activity on the decentralized exchange has been surging. As decentralized exchanges makes the process of listing cryptocurrencies easier, there is a high number of tokens being listed on DEXs every day. $PENNYBAGS, Burnace (ACE), Predator Token are some of the recent launches on PancakeSwap that are considered to possess the potential to skyrocket. The influx of new tokens plays a part in CAKE’s price rally.

      The future of the cryptocurrency is considered to be bright with optimistic price predictions. According to the estimates of Wallet Investor, CAKE will be operating at a price level of $50.86 in a year’s time while the price is expected to climb towards a staggering $166.87 in five years’ time. Digital Coin Price projects the coin will end the year at $32.22 and reach towards $72.31 by 2026.

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