TL;DR
- CAKE has risen by 34.9% in 24 hours and over 100% in the last week, reaching $2.87 after a correction phase that brought it close to $1.33.
- The total value locked (TVL) in the platform has grown by 15.91%, reaching $1.85 billion, with the potential to surpass $2 billion if the trend continues.
- The possible launch of a memecoin by Changpeng Zhao has sparked speculation, boosting interest in tokens linked to BNB Chain, such as CAKE.
PancakeSwap has seen impressive growth in recent days, driven by rising demand and increased activity on its platform.
Its native token, CAKE, has performed exceptionally well, surging by 34.9% in the past 24 hours and over 100% in the last week, reaching $2.87. This recovery comes after a correction period that saw the cryptocurrency lose significant value, dropping close to $1.33 per unit. However, the current trend suggests sustained growth.
CAKE: Another Correction Before Further Gains?
On-chain data analysis indicates that the token maintains bullish momentum, though a short-term correction could occur before the uptrend continues. CAKE has surpassed key resistance levels but failed to break the $3.217 barrier, leading to a slight decline to its current price level. Technical indicators show that the token is overbought, suggesting a possible drop to support levels before the uptrend resumes.
The increase in PancakeSwap’s total value locked (TVL) has been a key factor in sustaining this positive trend. Over the past 24 hours, its TVL has grown by 15.91%, reaching $1.85 billion, with the potential to exceed $2 billion if the upward momentum continues.
Speculation Over Changpeng Zhao’s Memecoin
The rise in fees generated by the platform has also played a crucial role. Over the past week, PancakeSwap has generated more than $50 million in fees, with an additional $8.43 million in a single day, making it the highest-earning decentralized application on its network.
Another factor influencing market behavior is the potential launch of a new memecoin by Changpeng Zhao, founder of Binance. His recent interest in this type of asset has fueled speculation among investors, who may be anticipating a positive impact on the BNB Chain ecosystem and its associated tokens, such as CAKE.
