PancakeSwap overtakes Ethereum’s Uniswap to become the world’s largest DEX by volume
PancakeSwap overtakes Ethereum’s Uniswap to become world’s largest DEX by volume
The „Binance Smart Chain“ project is challenging the top DEXs with lower fees and an easy-to-use interface.
The day a pancake overtook a unicorn
PancakeSwap (CAKE) is now the largest decentralised exchange in the world by daily trading volume, data from market app CoinGecko shows. The project launched on Binance Smart Chain last year, but few paid attention to it at the time.
Yesterday, over $1.7 billion was traded on PancakeSwap. In contrast, Uniswap saw over $1.6 billion change hands. The latter is BinBot based on Ethereum and is the network’s biggest gas guzzler – yesterday alone it generated $16 million in fees for miners, according to ETH Gas Station.
There are 210 „verified“ cryptocurrencies listed on the project in over 799 different trading pairs. Of these, WBNB/BUSD is the most traded with over $454 million in volume – also CAKE, BAKE, BURGER, and other funny sounding tokens also see large trading volumes.
On PancakeSwap, users can wager their CAKE and collect „SYRUP“, the platform’s governance token, in exchange for providing liquidity across crypto pairs. This enables the creation of a peer-to-peer exchange where all trades are executed through an „automated market maker“ design.
Other products on the platform include non-fungible tokens (NFTs), IFOs and a lottery game. These allow users to spend CAKE to either collect art, participate in the launch of new projects or win the lottery.
The rise of BSC
Pancakeswap is based on the Binance Smart Chain (BSC), one of the two blockchains built and maintained by crypto exchange Binance. It enables smart contract integrations and similar other services possible on Ethereum (Go to Buy Ethereum Guide) and was launched in September 2020.
Two of the biggest advantages of using BSC are the network’s low fees and fast transactions (a few cents or 300 transactions per second).
This allows newer blockchain users to invest a small amount of money, such as US$100, and participate in yield farms, lending, trading and other on-chain operations without losing a lot of money in „fees“ to miners on expensive networks.
Token and usage of other BSC projects also rose in recent days. Venus and Burgerswap lead the gains in the BSC space. The sector has grown to over $49 billion and accounts for 3% of the total crypto space.