Numerous activities have unleashed a flurry of momentum and more credibility to decentralized cryptocurrency exchange Pancakeswap in recent weeks, causing the decentralized exchanges CAKE token to soar to an increase of 57% this past week alone. Impressively, the number of transactions occuring on the Binance Smart Chain (BSC) increased to five times its nearest competitor, Ethereum.
This increase in volume on BSC has benefited Pancakeswap greatly. In numbers, the Pancakeswap project currently has over $2.9 billion as collateral and close to $6.44 billion in volume over the last 7 days.
This somehow influenced both the price of the CAKE token and the perception of its users to have more confidence in their assets invested in the platform. Coupled with this, it appears that new retail entrants are coming directly to BSC / Pancakeswap due to the low fees, and it being an overall great product. This introduction of a new version (V2) has made it very clear that Pancakeswap is fulfilling its roadmap to the letter.
Pancakeswap V2
The new version of Pancakeswap consisted of migrating the set of Smart Contracts with the aim of improving incentives and adjusting trading fees. On April 23, 5:00 AM UTC, the great migration took place, which in turn was a success and which many cataloged as a great achievement for the platform. But this is not all, the exchange adjusted the mechanism to burn more CAKE than ever. Undoubtedly a great feat, in addition to bringing improvements in incentives and security, the increase in the amount of tokens being burned, could greatly benefit the CAKE price.
Pancakeswap’s Great Migration proposal had 4 options, and the winner was Option #4 by a wide margin. Option #4, otherwise known as “The Big Burn”, was to increase the trading fees to .25%, and of that .25%, .17% will go to LP token holders, .03% will go to the Pancakeswap Treasury and finally .05% will go to CAKE token buyback and burns.
This version 2 upgrade will allow Pancakeswap to offer new products and rewards for users along with the addition of new ingredients in the kitchen and leading to new achievements, new rich and delicious products.
What is next?
According to the Chefs, this week they plan to implement the CAKE Auto-Compounding Syrup Pool and the predictions market, which not a lot is currently known about but they have made it clear that a percentage of the total prize pool of each round will be used to buy back and then burn CAKE.
In short, we are aware that Pancakeswap will continue to grow, this week could be a valuable stage for the platform that will further clear doubts regarding investment from users. A stage that begins the month of May with great energy and very good projections. PancakeSwap is the main market maker of the Binance Smart Chain network with more than 11,300 pairs that generate more than 2 million USD in commissions alone every single day.