- PankcakeSwap V3 is off to a healthy start after its BNB chain deployment.
- UNI bulls gain an edge over the bears but profit-taking hinders extended upside.
PancakeSwap [CAKE] v3 was recently deployed on the BNB smart chain and the timing could not have been more ideal. The rollout underpins the expanding DeFi horizon especially now that crypto is facing a lot of pressure from regulators in the West.
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The newly launched PancakeSwap V3 is already off to a healthy start. According to a DappRadar analysis, the number of unique active wallets (UAWs) drastically grew after the PancakeSwap V3 rollout on the BNB smart chain.
3/ DappRadar Ranking shows that this announcement brought a wave of more UAW transacting on the new PancakeSwap platform than in the previous one.
The #DEX may obfuscate counterparts SushiSwap and Uniswap, or at least contribute to a fair market
pic.twitter.com/v30Q0WnLEV
— DappRadar (@DappRadar) April 4, 2023
The same analysis highlights incentives that might be fueling the UAW surge. The new platform reportedly offers a wider range of tools and lower trading fees compared to the previous iteration.
The upgrade will also favor liquidity providers in the form of higher returns. This particular development may attract more LPs to the network, a benefit that is expected to boost PancakeSwap’s TVL.
Binance CEO CZ acknowledged the PancakeSwap V3 launch on the BNB chain and stated that more DEXs are necessary. His take is likely in response to the initially highlighted point that regulators in the West are targeting centralized exchanges. This may lead to a large flow of users from centralized exchanges to decentralized exchanges in the near future.
PancakeSwap V3 on BNB chain triggers more on-chain activity
The surge in UAWs is in line with the latest on-chain observations related to user activity. For instance, PancakeSwap experienced a surge in the number of daily active addresses in the last two days.
Address activity registered its weekly peak on Tuesday with slightly over 18,000 active addresses. In contrast, the network had just 67 active addresses two days prior.
Source: Santiment
But that’s not all. PancakeSwap observed a volume spike, especially in the last 24 hours. A potential reason for this volume surge is the likelihood that it is already unlocking more trading activity and liquidity through the BNB chain.
Similarly, weighted sentiment has been growing steadily in the last seven days, confirming that more traders anticipated a bullish outcome.
Source: Santiment
How many are 1,10,100 CAKEs worth today?
CAKE’s value dipped slightly in the last two days despite the bullish bias among investors. However, that bias finally aligned with the price action in the last 24 hours during which the bulls pushed for a 9% upside, to a new 4-week high of $4.
However, profit-taking was also prominent, thus suppressing the price back to a $3.7 press time price. The bullish price outcome reflects the noteworthy inflows that are mirrored in its Money Flow indicator.
Source: TradingView
