Why is PancakeSwap (CAKE) crypto rising?

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Why is PancakeSwap (CAKE) crypto rising?

PancakeSwap (CAKE) crypto
Image source: © Moxumbic | Megapixl.com
Highlights:
  • PancakeSwap is a decentralized exchange (DEX) based on Binance Smart Chain.
  • The project was developed and launched by anonymous developers in September 2020.
  • The platform has recently announced a new feature called Perpetual Trading.

Bitcoin’s (BTC) growing popularity has led to the emergence of a spurt of cryptocurrencies in the market. Digital assets such as NFTs, stablecoins, altcoins, besides the popular cryptocurrencies, are gaining attention. One such crypto on investors’ radar is PancakeSwap (CAKE).

The CAKE token has witnessed a price surge lately. In the trailing 24 hours to Wednesday morning, its price jumped over 3% and the trading volume soared more than 19%.

The global crypto market was up 4.26% to US$1.79 trillion at the same time, while the 24-hour volume rose 26.15% to US$93.39 billion. Currently, the market has around 18,268 cryptos and 463 exchanges, and their numbers are regularly growing, according to Coinmarketcap.

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What is PancakeSwap (CAKE)?

PancakeSwap, developed and launched by anonymous developers in September 2020, is a decentralized exchange (DEX) based on Binance Smart Chain.

It is an automated market maker (AMM), a decentralized finance (DeFi) app that allows users to exchange tokens, provide liquidity via farming, and earn fees in return. PancakeSwap users deposit their funds in a liquidity pool and get liquidity provider (LP) tokens in return.

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The LP tokens are used to reclaim the users’ shares in the pool and a part of the trading fees. These tokens are called FLIP, but PancakeSwap also allows users to farm other tokens like CAKE and SYRUP. Users can deposit the LP tokens and receive rewards in CAKE on the farm.

CAKE is a BEP20 token, originally launched on the Binance Smart Chain. It is the native utility token of PancakeSwap, primarily used to incentivize the liquidity services of the platform.

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Why is the PancakeSwap crypto rising?

PancakeSwap investors have welcomed its announcement to launch the Perpetual Trading Lucky Draw Event after launching its newest feature, Perpetual Trading, recently. Perpetual Trading helps users to better navigate and trade amid a volatile market.

PancakeSwap is partnering with ApolloX to sponsor the lucky draw event to celebrate the launch of Perpetual Trading. The total prize pool of the draw is USDT 100,000.

The event will continue for four consecutive weeks, starting from March 16.

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PancakeSwap (CAKE) crypto price and performance                                                      Source: *Data provided by CoinMarketCap.com

Bottom line:

The CAKE token was priced at US$5.56 at 8:40 am ET on Wednesday, up 3.36%, while its one-day volume jumped 19.76% to US$159.30 million. It has a market cap of US$1.53 billion, and its fully-diluted market cap is US$1.54 billion.

The token is available on exchanges like Binance, BKEX, KuCoin, etc.

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