Decentralized finance, or better known as ‘DeFi,' continues to make greater headway in providing fair, accessible, equitable, and transparent access to money for all, and no doubt, PancakeSwap is among the most intriguing projects to come out of this space.
Introduced just late last year, PancakeSwap is a nascent decentralized cryptocurrency exchange (DEX) built on the Binance Smart Chain blockchain and has quickly become one of the most popular decentralized apps (dAPPs) on BSC. Nonetheless, its still-fledgling state has meant that our CAKE price prediction has come up with some rather interesting forecasts.
Its unique economy is helping to carve PancakeSwap its own niche in the DeFi sector by providing users the ability to trade with a clever automated market maker (AMM) algorithm, along with an expansive digital and decentralized ecosystem to better create and extract value from a diverse range of cryptocurrencies.
Altogether, PancakeSwap shows promise. However, this young platform is entering into a very crowded market filled with other, more well-known blockchains. So, please keep reading to find out more about our CAKE price prediction and why you ought to be cautiously optimistic.
PancakeSwap Historical Price Analysis
As a fairly new token, PancakeSwap has not yet held an ICO for its native currency, CAKE. However, it's worth noting that other tokens were created for use on the PancakeSwap decentralized exchange, such as FLIP and SYRUP. For now, we'll stick with CAKE, but you can learn more about the differences below. It's currently the immature market has also meant that historical data on its price is minimal.
The earliest trading data for CAKE as gathered by CoinMarketCap was on September 29th, 2020. Not long after it began trading, CAKE peaked to an all-time high of $1.170000 on October 12th, 2020. Thereafter, CAKE plummeted to an all-time low of $0.198000 on November 3rd, 2020 – less than a month after it had posted its all-time highs.
Current Price, Market Cap, & Supply Details
CAKE is trading for $0.728056 at the time of writing (January 20th, 2021), which is a 2.86% loss in 24-hour trading. By comparison, this price would put it at a 38.00% loss compared to its all-time high and a respectable 267.70% gain from its all-time low.
PancakeSwap has historically been trading in a fairly volatile manner – which is expected from a newly-launched cryptocurrency – so it's worthwhile to be extra cautious when buying into this market.
CAKE has been given a total supply cap of 150,908,916 CAKE, with 97,042,544 CAKE tokens being circulated. Given its price, this would value CAKE's market capitalization at $70,652,427, making it the 266th-most valuable cryptocurrency.
PancakeSwap (CAKE) Future Price Forecast Predictions
Although there are a growing number of decentralized cryptocurrency exchanges, with even more on the way, PancakeSwap is unique as it's being built on the Binance Smart Chain.
Connecting to Binance's expansive network is a big advantage, as PancakeSwap can utilize its versatility of high-speed transactions, scalability, and low transaction fees. However, as is mentioned already, PancakeSwap is still a very young project just out of the womb. As such, our CAKE price prediction shows that you should be very wary of your approach.
PancakeSwap Price Prediction 2021
Although you only need a very brief glimpse at our charts to see that CAKE is forecasted to have a bearish future, it should be taken in mind that our CAKE price prediction is only able to aggregate algorithmic models based on technical factors. Moreover, there isn't much technical data to find a strong basis on in the first place.
The key factor behind organic growth is good fundamentals, and there's certainly a lot of promise for PancakeSwap's platform to offer more for would-be DeFi participants, so don't take those numbers at face value alone.
PancakeSwap Price Prediction 2023
PancakeSwap, although with an already expansive decentralized financial platform, aims high with an ambitious plan to implement even more services to make better utilization of its CAKE cryptocurrency, potentially expanding its value even more.
It's most immediate attention is some controversy over PancakeSwap's auditing process, seemingly revealing potentially damaging flaws in its smart contracts. Concerns like these should be addressed for PancakeSwap to pursue a more hopeful future, compounded with growing a more confident and enthusiastic userbase.
PancakeSwap Price Prediction 2025.
It's no doubt difficult to see this far into the future, but by now, we could already have experienced a break-it-or-make-it scenario for PancakeSwap. There's no doubt that decentralized finance (DeFi) will be the future for the masses to access financial services.
It's a matter of when that future might come, sooner or later, and whether platforms like PancakeSwap could have a place in it. Their goals are very ambitious, but it will take a lot of effort from PancakeSwap to form a strong footing in an already highly competitive space.
Is PancakeSwap A Good Investment?
Our CAKE price prediction has shown a very bearish sentiment for its native CAKE cryptocurrency based on available technical data. However, a study of the fundamental aspect proposes a more rosy prospect in the months and years to come.
A mixed reception has allowed us to conclude that PancakeSwap's CAKE is an interesting token to consider investing in if you're keen on being an early adopter within the incredibly diverse DeFi ecosystem to help support new projects given its promises and potential.
Remember that major cryptocurrencies such as Bitcoin and Ethereum were at one point in similar positions as CAKE is today. But even for seasoned investors, it's good for you to be exceedingly prudent knowing that PancakeSwap's still-maturing state means that it's future and long-term sustainability is not yet entirely tenable.
There's also the concern that other major platforms with greater exposure and experience within the decentralized marketplace space, such as Uniswap and its equally versatile ecosystem, could bring heavy competition against new entrants like PancakeSwap.
That said, the folks over at PancakeSwap are already busy plotting their goals ahead. Currently, it's biggest USP is its unique automated market maker (AMM) model that could exchange a wide variety of Binance-powered, BEP-20 standard tokens using PancakeSwap's specialized pricing algorithm.
Users could also easily earn rewards by becoming a liquidity provider and extending the use of CAKE tokens across the platform through staking, yield farming, a lottery service, a built-in NFT marketplace, and even a uniquely created Initial Farm Offering token launch platform to power other BEP-20 cryptocurrencies.
This synergy between PancakeSwap's CAKE and the rest of the Binance Smart Chain will continue to expand, according to PancakeSwap's roadmap. More Initial Farm Offering (IFO) launches are scheduled to raise funds for new projects powered by CAKE.
Furthermore, there's an intention to create a lending and borrowing service, margin trading with other BSC-powered tokens, expansion of their NFT marketplace to tokenize digital assets with CAKE to attain real-world value, fixed-term staking, and even binary options.
How To Buy PancakeSwap (CAKE)?
As a very new cryptocurrency, the marketplace options for buying CAKE tokens are very limited for the time being. Being built on the BSC blockchain, PancakeSwap naturally has its CAKE tokens being listed on the Binance Exchange, with a trading pair for both BNB and BUSD. PancakeSwap offers CAKE with several BEP-20 standard trading pairs.
More Information About PancakeSwap.
PancakeSwap is a decentralized exchange (DEX) built on the Binance Smart Chain. The platform's main service is an automated market maker (AMM) that uses smart contracts to create a cryptocurrency trading pair – essentially a market – without needing another counterparty to trade with, as in a typical order book exchange.
With an AMM, pricing algorithms are able to create the necessary trading pairs for you to exchange in a trust-less manner, using tokens set aside in liquidity pools. In essence, instead of trading against another person, you're trading against the liquidity pool.
As a trader, this means that you're able to trade at a fair price without having to match the price being set by the order book at the mercy of another trader. This is a huge concern for trading pairs with low volume, as speculators are able to take advantage of its volatility.
As an investor, you could easily become a market maker or a liquidity provider (LP) on PancakeSwap. By putting select tokens into liquidity pools on the exchange, you are rewarded with tokens.
There are 3 types of tokens that have been built by PancakeSwap and are used for different functions on the exchange. FLIP tokens are earned by liquidity providers (LP) for putting select tokens into the liquidity pools across the exchange that is needed or powering trades.
CAKE tokens – the focus for this CAKE price prediction – are earned as a reward for staking FLIP tokens and is also the main transaction currency for other services on the exchange. SYRUP tokens are earned by staking CAKE into the SYRUP Pool, where holders can earn 25% of every CAKE block reward and allow them access to new tokens launched on BSC.
The old doctrine of risk-versus-reward still rings true with our CAKE price prediction – you should only invest into PancakeSwap what you're willing to lose, but with an equally healthy dose of optimism.
Although jumping into a highly competitive market, PancakeSwap brings something joyful and interesting into the DeFi sector, with a decentralized exchange built onto the promise of high-speed, high-scale, and low-fees structure of Binance's Smart Chain, unlike its competitors that have been built on other blockchain networks such as Ethereum.
Consequently, the success of PancakeSwap relies a lot on Binance and is pinned on the hopes of greater synergy between them and connecting with the wider decentralized ecosystem through cross-chain compatibility. Everything has a beginning, and there have been similar skepticism laid out against much of the blockchain space throughout its history, especially during the advent of DeFi. PancakeSwap is no different than DeFi not too long ago, and despite the heated rivalry, this is one intriguing project that could be worth for you to take a keen look at.