Pancakeswap: Surge in active user count drives revenue

Last month, the total number of active users on PancakeSwap was 1.37 million. The buying pressure in CAKE is reducing hence the price could correct further.

With 1.37 million users over the past 30 days, PancakeSwap led the decentralized finance (DeFi) protocol with the most active users last month, data from CryptoRank showed.

Source: CryptoRank

Housed within the BNB chain, PancakeSwap is a decentralized exchange (DEX) that allows users to trade various cryptocurrencies.

Due to increased user activity on the project last month, the number of transactions also increased.

According to data from DappRadar, a total of 10.26 million transactions were completed on PancakeSwap over the past 30 days, an increase of 14%.

Similarly, the total fiat value of all transactions completed within the reporting period increased by an astonishing 900% due to the exponentially growing transaction count on the protocol.

As of press time, the volume of all transactions completed on PancakeSwap last month stood at $26.52 billion.

Source: DapRadar

As expected, an increase in user activity and transaction numbers over the past month coincided with a corresponding increase in protocol revenue within the same period, data from Token Terminal showed.

Over the past 30 days, revenue on PancakeSwap increased by 55%, bringing its total revenue during that period to $3.04 million.

In addition to increased user activity on the protocol last month, the jump in revenue was also due to a 54% increase in fees paid to process transactions on PancakeSwap.

According to Token Terminal, fees paid by users of the protocol last month amounted to $9.51 million.

Source: Token Terminal

With $3.04 million in revenue in the past month, PancakeSwap was ranked as the sixth decentralized application (Dapp) with the highest revenue in the last 30 days, after Convex Finance, Lido Finance, GMX, dYdX, and OpenSea.

Source: Token Terminal

now may be the time to quit

Year-to-date (YTD), the price of cakes has increased by 30%. However, according to Coinmarketcap, the price of alts has started to decline since February 8 with a drop in buying activity. Since then the value of CAKE has fallen by 10%.

The decline in price is in line with the start of a new bear cycle on the daily chart, as can be gauged from the moving average convergence/divergence (MACD) conditions of CAKE.

The MACD line crossed with the trend line on February 8, marking the re-entry of the bears into the CAKE market after a long period of price growth.

Moreover, key momentum indicators Relative Strength Index (RSI) and Money Flow Index (MFI) have been on a downtrend since then.

At press time, CAKE’s RSI stood at 51.95, while its MFI stood at 58.70. With both indicators looking to break their respective neutral lines in a downtrend, buying pressure has subsided significantly, and further price declines may be on the horizon.

Source: Keck/USDT on TradingView


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