A relative newcomer in the decentralized exchange (DEX) space is witnessing massive trading volumes, with its native token skyrocketing as high as 1,463% in the past month.
PancakeSwap (CAKE), which launched in late 2020, and is now the third-largest DEX with more than $444 million in daily trading volume at time of writing, according to CoinGecko, putting it ahead of its popular competitor SushiSwap by roughly $25 million.
PancakeSwap, which is run on smart contract platform Binance Smart Chain, offers traders a cheaper alternative to Uniswap, which is currently dealing with enormous Ethereum gas fees.
Because PancakeSwap is not running on Ethereum, it does not offer access to native ERC-20 assets and instead features BEP-20 assets built on Binance Smart Chain.
Crypto analyst Nicholas Merten says he’s impressed by the project, but recommends investors wait to see if the DEX’s astronomic rise in value is a result of hype, and consequently temporary.
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