PancakeSwap is a decentralized exchange (DEX) that still shows good prospects in the future. Low fees and high liquidity make the platform appear quite alluring. The trend towards decentralized economic products (DeFi) and the extensive user base make PancakeSwap an incredibly engaging product. Let’s talk in this article about why Pancakeswap crypto could be a good investment opportunity, the CAKE price prediction, and can the native token CAKE reach $10 by the end of the year 2022.
What is PancakeSwap crypto?
Pancakeswap crypto permits users to trade their tokens without the requirement for a middleman, as in the matter of centralized exchanges. The project was created on Binance Smart Chain.
Even though all the actions on Binance are virtuously centralized, the firm has no power over PancakeSwap. PancakeSwap is stated to be created by unidentified developers. Even though Pancakeswap has proved itself as a muscle to compete within the DeFi sector, it encounters rigid contests from big wigs such as Uniswap. The reason is that Uniswap brags about an extremely high volume when it comes to trades on the exchange.
The token from the decentralized application named PancakeSwap is “Cake”. This coin is yielded out as soon as you move into other liquidity pools or stake other coins. Since this coin is circulated regularly and the number of coins on the market is continuously rising, the price will decrease if there are no new buyers.
PancakeSwap Price Prediction: Can CAKE Reach 10$?
.@BinanceLabs has invested in @PancakeSwap‘s utility and governance token, $CAKE.
This investment will provide technology development, marketing and community support as well as Web3 enterprise solutions.https://t.co/JHO2P9k9rH
— Binance (@binance) June 6, 2022
In June 2022, Binance Labs reported a strategic investment in Pancake Swap. The investment is a credit of Pancake’s obligation to the BNB chain. Since the Binance Chain was projected, Pancake has been a great advocate.
The timing of this investment and announcement was inquisitive with the current market selling anxieties as Binance could be supporting CAKE. Near-term price forecasts for CAKE could witness resistance ahead of the $10 level. CAKE should rebound to approximately $12 by the end of this year and could witness the highs of $25 again in mid-2023. At the time of writing this, the CAKE price is sitting at $3.94. In the last seven days, the price has increased by almost +6%.
Apart from this, PancakeSwap has much more reasonable expenses at 0.2%. This permits more transactions to be executed and investors to obtain increased profit margins. Because of the incredibly low fees, PancakeSwap has assembled a very active community that backs the project loudly.
Staking, the requirement of your own tokens to help the validation procedure of transactions and the provision of liquidity, is one of the major attributes of decentralized exchanges. Via staking, investors can earn high annual returns on the correct decentralized stock exchange.
On PancakeSwap, 16 tokens are now open for staking within the network. The staking pools on the platform give yearly returns of up to 72%. The pools are not just traditional liquidity pools, they also present high returns. The token CAKE not only functions as a governance token but can also be stacked.
One of the significant benefits of the Binance Smart Chain is its elevated liquidity. PancakeSwap has the most elevated daily user base of any decentralized application and persists to have the fourth-highest market volume. Thanks to this high and, above all, dynamic user base, liquidity on the platform can be constantly secured.
If you want to buy CAKE, stop by the Binance or Coinbase exchanges!
PancakeSwap Price Prediction: CAKE is Showing Bearish Movement
CAKE/USDT Weekly chart – GoCharting
CAKE is in a downward modification as it is bounded between the moving average lines. The last upward revision was repulsed at the price of $4.6. The CAKE has dropped and it is bounded between the moving average lines.
Now, the CAKE price could trend when the moving average lines are breached. If the bulls touch the 21-day line SMA, the price could rise and again touch the $5.00 mark. Contrariwise, if the bears fall below the 50-day line SMA, the CAKE could again further fall to the earlier low at $2.49 low. This suggests that it is in the bearish trend zone and may drop slightly.
Conclusion
With the present market presumption, it is challenging for the crypto market to accomplish any price jump before we witness what happens with Ethereum’s merge and Bitcoin price. Those two events are vital for the growth of other prices. Presently, the hype about the merge has shrunk, and CAKE is just cruising with the crypto market with a slight lag.
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