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CAKE, the native token of the largest decentralized exchange in Binance's ecosystem, PancakeSwap, has unexpectedly captured the CoinMarketCap trends. Although the current price action of CAKE is nothing special, the reason for increased interest in the token seems to be the impressive performance of the DEX itself.
Thus, according to the latest statistics from CryptoRank, trading volume on PancakeSwap increased by 56% during November. Consider that the Binance-affiliated decentralized exchange is the second largest in terms of turnover in the DEX segment and its size is $86.5 million per day.
Overall, the portal reports that the average monthly trading volume on DEXes increased 110% during the month. The reasons are clear and relate to the loss of trust in centralized exchanges following the collapse of FTX, a major CEX that lost customer funds as a result of botched management and subsequent insolvency.
"The FTX crisis" has triggered a new trend toward decentralized finance and a corresponding influx of funds and attention to all projects related to it.
Gamza KhanzadaevPancakeSwap (CAKE) price action
Despite the DeFi narrative and PancakeSwap's rising performance, CAKE is not yet showing outstanding price action. However, it should be noted that during the recent collapse, the token's price fell less painfully, by just 16%.
Looking at the CAKE chart, you can see that the token is in an accumulation phase right now, trading in the $4 area, with fairly weak price volatility.
Godfrey Benjamin
U.Today Editorial Team
Vladislav Sopov
Dan Burgin