Journalist
Posted:
- PancakeSwap V3’s volume on zkEVM, Arbitrum, and the BNB Chain rose.
- CAKE was down by more than 6% over the last seven days.
PancakeSwap [CAKE] has been witnessing a massive rise in popularity, especially on the BNB Chain [BNB]. However, AMBCrypto’s analysis found out that the DEX’s v2 had witnessed a concerning decline in its key metrics.
This was evident from Dune’s data, which revealed that PancakeSwap v2’s monthly users have been declining for multiple months now. A similar declining trend was also noted in terms of its monthly transaction distribution.
Source: Dune Analytics
PancakeSwap is pumping on BNB
Despite the declining V2 stats, CAKE V3’s performance on BNB was commendable. As per the official website, PancakeSwap V3’s daily volume gained upward momentum at the time of writing.
Its TVL on BNB also remained pretty stable for quite a few weeks now.
Source: PancakeSwap
Apart from BNB, PancakeSwap V3’s stats also grew on other chains. Notably, the DEX’s performance on Arbitrum [ARB] remained quite competitive at press time, as its volume and TVL increased.
However, things were different in the zkSync Era, as the DEX’s volume on the rollup had declined over the last few days.
Source: PancakeSwap
Will this help CAKE?
Though the L2’s stats look concerning, CAKE announced a new proposal that could further propel growth, at least on the BNB Chain. PancakeSwap has proposed a new adjustment to its BNB farm rewards.
According to the official tweet, the motive behind this adjustment is to reduce emissions, increase CAKE burn, and ensure sufficient liquidity for seamless trading.
Proposal for Adjusting BNB v3 Farm Rewards
We propose an adjustment to the CAKE rewards for BNB v3 farms. Our aim is to reduce emissions, increase CAKE burn, and ensure sufficient liquidity for seamless trading.
Cast your vote for free here: https://t.co/JwVIkHJ2lF pic.twitter.com/4MNIn393MR
— PancakeSwap
Everyone’s Favorite DEX (@PancakeSwap) November 13, 2023
This proposal intends to raise the overall CAKE burn by about 1,700 CAKE per day and decrease emissions to the farms, taking into account the traction and overall market share demonstrated on our BNB Chain v3 deployments.
The voting will close on the 14th of November. At press time, more than 96% of voters were in support of the proposal, increasing the chances of the adjustment plan going live.
CAKE’s price chart turns red
While the DEX drafted its new proposal, its native token’s price dropped last week. According to CoinMarketCap, CAKE’s value plummeted by more than 6% over the last seven days. At the time of writing, it was trading at $2.15 with a market capitalization of over $492 million.
Read PancakeSwap’s [CAKE] Price Prediction 2023-24
While its price dropped, its volume also plummeted, reflecting less interest from investors in trading the token. CAKE’s Price Volatility 1w and Weighted Sentiment also dropped over the last week.
However, it was surprising to see that, despite a drop in price, CAKE’s MVRV ratio improved in the last few days.
Source: Santiment
