PancakeSwap Price Gains Momentum as Daily Users Jump

Centralized and decentralized exchanges (DEX) have started the year well, helped by the strong comeback of cryptocurrencies. Coinbase shares have soared by over 150% from the lowest point in December. Similarly, Uniswap and PancakeSwap have seen inflows, daily users, and revenue rise. As a result, CAKE price was trading at $4.23, about 35% above the lowest point in December.

PancakeSwap volume rises

PancakeSwap is a major player in decentralized finance (DeFi). It was originally created in the BNB Chain although recently it has expanded to Ethereum and Aptos. According to DeFi Llama, the network has a total value locked (TVL) of more than $3.69 billion in dollar terms. 

Its BNB Chain ecosystem has a TVL of over $3.6 billion while Aptos and Ethereum have a TVL of $36 million and $16 million, respectively. In BNB terms, PancakeSwap has seen its TVL plunge to a low of 811 million, the lowest point since April 2021.

PanckaeSwap has struggled in the past few months. Like Uniswap, the network struggled as the overall trading volume plunged in 2022 as cryptocurrencies retreated. At the same time, competition from other fast-growing DEX platforms like dYdX, Kine Protocol, and Curve Finance has risen. 

Recently, however, the recent crypto rebound has done well, helped by the strong performance of most digital coins like Bitcoin and Ethereum. This performance is mostly because of the rising expectation of a Federal Reserve pivot. 

As a result, data compiled by Token Terminal shows that the number of daily users has been in a strong uptrend since January. On December 24, it had over 96.4k active users. This figure has grown to over 144k, the highest level since December 15. 

As a result, total revenue has jumped by 26.5% in the past 30 days albeit from a low base. Indeed, total revenue has crashed by 61% in the past 30 days.

PancakeSwap price forecast

The 4H chart shows that the CAKE crypto price has made a strong comeback in the past few days. As it rose, the token has formed an ascending channel shown in black. It has moved slightly above the important resistance level at $4.11 (November 26 high). The price is nearing the upper side of the ascending channel. 

Further, CAKE price is being supported by the 25-day and 50-day moving averages. Therefore, the outlook of the PancakeSwap price is still bullish, with the next key level to watch being at $5.