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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

CAKE Remains Under Pressure Despite PancakeSwap Dominating BSC

Dalmas Ngetich
Dalmas Ngetich
2 years ago
3 mins read
Uniswap

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Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
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CAKE, the utility token of the decentralized exchange, PancakeSwap, remains under pressure days after the Uniswap community voted to launch the exchange on the BNB Smart Chain (BSC), a smart contracting platform.

Uniswap v3 went live on the BSC on March 15, bringing stiff competition to PancakeSwap, which has long been dominant on the smart contracting platform. It also marks the first time Uniswap went live on one of the most active blockchains.  

Uniswap is now live on @BNBCHAIN 🔶🦄https://t.co/LWPd2TE1x4 pic.twitter.com/j6aJpoG87z

— BNB Chain (@BNBCHAIN) March 15, 2023

According to coin trackers on March 30, CAKE is changing hands at $3.6, stable on the last trading day but down roughly 22% from February peaks. 

CAKE Price On March 30| Source: CAKEUSDT On Binance, TradingView
CAKE Price On March 30| Source: CAKEUSDT On Binance, TradingView

Notably, CAKE posted sharp losses on February 9. On this day, the Uniswap community voted to deploy Uniswap v3 on the BSC for the first time.

Uniswap Versus PancakeSwap

Uniswap is a decentralized exchange that is also one of the most popular DeFi dapps, trackers on March 30 indicate. 

DeFiLlama data shows that Uniswap has a total value locked (TVL) of $3.86 billion and is dominant on Ethereum, where it facilitates the trading of ERC-20 tokens. 

Related Reading: PancakeSwap TVL Drops 12%, Did This Exchange Received A Lethal Blow?

Compared to others, Uniswap is the fifth largest dapp only after Lido Finance, a liquidity staking protocol; MakerDAO, a decentralized money market; Aave, a lending and borrowing protocol; and Curve, a platform for trustlessly swapping stablecoins.

PancakeSwap is the second largest DEX with a TVL of $2.48 billion as of writing. The exchange is deployed on the BSC and Ethereum. However, on BSC, where Uniswap v3 was recently launched, PancakeSwap is the most dominant, with a TVL of $2.43 billion. Even though weekly trading volumes have contracted by 29%, the DEX is popular with token traders on BSC. 

Meanwhile, Uniswap didn’t start strongly as anticipated on BSC. Instead, Uniswap is the fourth largest DEX after PancakeSwap, Level Finance, and DODO, managing $10.43 million of assets.

CAKE Is Down 22% From February 2023 Highs

PancakeSwap’s dominance is not helping CAKE prices that remain under pressure. CAKE is perched at 69th on the market cap leaderboard.

Related Reading

PancakeSwap

PancakeSwap (CAKE) Slides Below Range, Is This An Entry Point For Buyers?

2 years ago

Since CAKE’s value is pegged to the DEX’s activities and given how providers supply liquidity to its pool, the token’s overall valuation could be impacted should Uniswap’s TVL rise in BSC. In that case, traders would prefer to trade on Uniswap, an interoperable protocol available on several platforms, including Celo and Algorand, over PancakeSwap, that’s only on BSC and Ethereum.

While the Uniswap v3 Business Source License (BSL) expires on April 1, PancakeSwap v3 is set to be released next month. With the expiry of the Uniswap v3 BSL, any developer will be free to fork their code.

Feature Image From Canva, Chart From TradingView
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Dalmas Ngetich
Dalmas Ngetich

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

Read more

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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