Pancake (CAKE) is set to boom!
When I first bought CAKE tokens in mid February, it costs US$ 6.6 per token. Now it worth US$ 36.1 per token. It has appreciated almost 6 times in less than 3 months!
CAKE is the governance token for PancakeSwap, which is the biggest decentralized exchange (DEX) on Binance Smart Chain (BSC) by almost all measures. The transaction volume on PancakeSwap has been growing crazily in the past 2 months. On April 22, 2021 (5 days ago), PancakeSwap processed over 2 million transactions compared to Ethereum’s 1.55 million transactions.
PancakeSwap alone processed more transactions than the entire Ethereum network!
And the thing is that — PancakeSwap is still far from its ceiling. We can foresee that the project’s governance coin, CAKE, continue to jump in price in the next 2 months for the following reasons:
- Fast growing TVL
Although PancakeSwap is already the biggest DeFi project on BSC, there is still no sign of slow down in its growth. At the beginning of this month (1st April 2021), the project’s 24-hour volume was still below USS$ 1 billon. Only 10 days later (10th April 2021), its 24-hour volume jumped to US$ 1.65 billion. Another 10 days later (20th April 2021), Pancakeswap’s 24-hour volume reached US$2.75 billion. In just 20 days, its volume has jumped almost 280%!
2. The token burn has just started
On April 22 (5 days ago), the PancakeSwap community has voted for a new fee structure, under which 0.05% of every transaction will be charged by the platform and used for CAKE token burn. With the rapid jump in transaction volume, there will be a proportional jump in the fund available for token burns. It will significantly drive the CAKE price upward.
3. More functionalities in the coming days
PancakeSwap will introduce “PREDICTION” tomorrow. While the project team has not yet announced what it is about, it is widely speculated that it will be options-like product that allow users to bet on market direction (similar to the futures or options offered by Binance). This new product will greatly stimulate the uses of he platform. Of course, part of the fee will goes to CAKE token burns!
