Even in the face of the great crypto depreciation of 2022, there is still cause for hope. Several investors have lost fortunes to bad investment strategies and extended bearish runs. But, specific tokens still offer hope in these dark times.
In a swiftly evolving crypto ecosystem, PancakeSwap is an exciting token. It’s based on a decentralized exchange automated market maker. It has links with Ethereum and is used to provide liquidity from the LPs). It encourages transparency and eliminates the need for intermediaries entirely.
As far as DeFi goes, CAKE (PancakeSwap) is one of the most exciting tokens. However, its future and the future of other crypto tokens are up for debate.
This article will examine this unique token and its future market prospects. Read on and learn more!
What is PancakeSwap (CAKE)?
Unlike many tokens, PancakeSwap is the name for both crypto and a decentralized exchange platform that allows peer-to-peer blockchain-based transactions.
The network’s native token is CAKE, based on BNB’s Smart chain. It’s used to invest in liquidity pools and staked for rewards. In addition, investors can use it to purchase lottery tickets and NFTs.
History of PancakeSwap
A motley of anonymous developers founded PancakeSwap in late 2020. At the time, the innovation was unique because the network was based on Binance’s Smart Chain. Compared to the Ethereum blockchain, the Binance Smart Chain offered quicker and more cost-effective transactions.
In its early days, CAKE could thrive because ETH was experiencing scalability issues. Also, Ethereum played host to nearly all the DeFi apps. And this was a significant spur for CAKE’s subsequent growth.
As a decentralized alternative to the Ethereum blockchain, PancakeSwap offered low trade fees compared to what was obtainable in the market- 0.2% instead of 0.3%. Because of this, the platform grew rapidly, with total locked value and trading volumes soaring exponentially.
By February 2021, it had become a big name in the DEX (decentralized exchange), competing with significant exchange giants Uniswap.
Its growth is primarily attributed to its cheap network fees, innovative branding, and great, unique features. Since 2021, its TVL (total value locked) has grown tremendously, and the platform has outlined extensive plans to delve into borrowing and lending, marginal trading, and prediction markets.
Considering past performances is no guarantee of deciphering future proceedings. Nevertheless, one can still draw valuable insight for practical application in a future context.
And to this effect, we’ll delve into CAKE’s price history and its fiscal swings in the two years since it was launched.
Having gone mainstream in the fall of 2020, it began trading on exchange platforms at just over $1. However, a collapse was imminent, as it crashed to $0.002318.
It rose briefly before sustaining a consistent downturn for more weeks. In the subsequent months, it would remain below one dollar until it hit the landmark again in late 2021.
By then, the bull run was well and truly underway, even if investors would later adjust the coin’s predictions and speculations for the market realities.
In summary, CAKE had its value triple in January 2021. After that, its volatility swung wildly for a few months until it peaked at nearly $50.
This boom did not last, as the inevitable bust came around to complete the cycle. By May, CAKE was trading at a miserly $17.84, having crashed by about 50%.
The bearish run continued, punctuated here and there by short volatile spells until it hit over $20 in August.
By September, it was down again, this time by about 60%, trading at only a little over $10.
The new year 2022 has not been kind to crypto, and CAKE has likewise tailed considerably.
The trend took a turn for the worse in March when the exchange platform announced that it had suffered a security breach.
How Does PancakeSwap Work?
The network was created to cater to the issue of crypto liquidity, one that plagues many other platforms on the blockchain.
The majority of DeFi projects don’t provide comprehensive services. PancakeSwap, on the other hand, offers support for potential segment solutions.
As a result, it’s a highly user-centric platform, offering a wide range of markets that provide decentralized liquidity with incentives like favorable commissions and profitable yield farming.
Through the CAKE token, the network manages a decentralized system where protocol changes are put to the vote by users.
So, at long as you own a token, you have a stake in the community to make decisions regarding crucial network policies and protocols.
PancakeSwap: Expert Prediction
Even the experts don’t know it all, as typified in their many contrasting opinions regarding the future of CAKE.
Some experts have tagged it as a “sell” token, whose prices are expected to drop considerably in the future.
At the time of the writing of this article, CAKE is worth just over $3, so there might be some truth to this. So, many experts speculate that its value will drop even more towards the end of the year.
But we’ve seen tokens outperform predictions and market analysis, haven’t we?
According to Wallet investors, the price will not change much in 2022. It’s speculated to peak at about $13, at best. Instead, the future of the token will rely on experiential, steady growth.
Therefore, its price might go near to $25 in 2024, with a slight increase in the subsequent year.
This prediction appears somewhat skeptical, given the token’s metronomic rise within the first six months of its launch.
Generally, the token’s value is expected to fluctuate slightly in the immediate future, with major changes anticipated only after 2022.
From 2024, the average expected prediction ranges between $10 and $13, with trading prices expected to be around $10.69 on average.
PancakeSwap might not be the biggest name on the market, but its inherent technologies make it a promising token, one to watch out for in the future.
In the interim, you might do well to steer clear of investments as the end to the current bust cycle is nowhere in sight.
Remember that you can always check out PancakeSwap price and other vital crypto news on CoinStats.