PancakeSwap Joins The Ranks Of DeFi Giants On zkSync Era: Here’s Why It Matters

Ronaldo Marquez

1 year ago

3 mins read

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Decentralized Exchange (DEX) PancakeSwap (CAKE), has announced the launch of PancakeSwap v3 on zkSync Era, a Layer 2 scaling solution that promises to deliver improved scalability, efficiency, and cost-effectiveness to its users.

According to the announcement, with the popularity of ZK rollups increasing and users and builders increasingly looking to L2 solutions, PancakeSwap is thrilled to offer users and developers even more reasons to build and trade on its DEX.

The Benefits Of PancakeSwap v3’s Swap Feature On zkSync Era

PancakeSwap v3 on zkSync Era comes with several exciting features, including Swap, Liquidity Provision (LP), Farms, and Initial Farm Offering (IFO).

The Swap feature allows users to enjoy quick and cost-effective token swaps through a user-friendly interface. With multi-tier fee structures ranging from 0.01% to 1%, traders can select the fee structure that aligns best with their trading preferences and liquidity pool engagement.

With low trading fees, users can trade their favorite tokens seamlessly while enjoying enhanced liquidity and reduced slippage.

Moreover, the Liquidity Provision feature lets users become part of PancakeSwap’s thriving decentralized exchange ecosystem by providing liquidity. Liquidity providers earn passive income through trading fees when people use their liquidity pool to complete swaps.

Per the announcement, with the scalability of zkSync Era, users can maximize their returns, achieving an impressive capital multiplier of up to 4000x.

Users can engage in Swap, LP, and social media tasks to earn loyalty points and unlock exclusive NFTs. The Galxe campaign provides an opportunity to explore and experience the power of PancakeSwap on this ecosystem, unlocking the full potential of the platform.

Ultimately, the integration with zkSync Era allows PancakeSwap to increase its transaction capacity and reduce congestion on the Ethereum network. As the popularity of DeFi continues to grow, the Ethereum network has become congested, leading to high gas fees and slower transaction times.

By leveraging Layer 2 scaling solutions like zkSync, PancakeSwap can significantly increase its transaction capacity, reduce congestion, and offer users a more reliable and cost-effective trading experience.

What’s more, the integration with zkSync Era is expected to pave the way for the mass adoption of DeFi. By offering users faster and cheaper transactions, PancakeSwap can attract more users to the platform, increasing the adoption of DeFi as a whole.

PancakeSwap’s Revenue Hit By Market Conditions

PancakeSwap has experienced some fluctuations in its market performance recently. According to Token Terminal data, PancakeSwap’s circulating market cap is currently $313.88 million, with a 1.16% decline in the past 24 hours.

Meanwhile, its fully diluted market cap has declined by 3.22% in the same period, currently standing at $1.12 billion.

Similarly, the total value locked on the platform has also decreased by 0.77% in the past 24 hours, currently sitting at $1.23 billion.

Over the past 30 days, PancakeSwap has generated $1.20 million in revenue, representing a decline of 26.02%. Its annualized revenue has also decreased by 32.11% to $14.55 million. The trading volume on PancakeSwap for the past year is $40.22 billion, indicating a 16.00% decline.

The fully diluted P/F ratio of PancakeSwap has increased by 31.2% to 26.21x, while its P/S ratio has also increased by 29.1% to 76.46x. In the past 30 days, PancakeSwap has generated $3.49 million in fees, representing a decline of 27.23%. Its annualized fees have decreased by 32.59% to $42.45 million.

These figures suggest that PancakeSwap’s performance has been impacted by recent market trends. Despite the decline in revenue and trading volume, the platform’s P/F and P/S ratios have increased, indicating a higher valuation for the company.

Featured image from Unsplash, chart from TradingView.com

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

However, Ronaldo's aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

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With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

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