BSC DeFi dapps starting to dominate
PancakeSwap has seen over 1.1 million unique active wallets interact with its smart contracts in the last 7 days. The leading automated market maker that allows two tokens to be exchanged on the Binance Smart Chain is reaping the rewards of its cheaper and faster transactions. This surge places PancakeSwap at the top of the dapp rankings according to data from DappRadar.
Furthermore, PancakeSwap has generated over $278 billion in volume outpacing every other dapp over the last 7-days. Including overtaking its leading Ethereum competitors Uniswap and Sushiswap. The impressive user numbers are not a blip in an otherwise uneventful month for PancakeSwap. In the last 30 days, the dapp has seen over 3.3 million unique active wallets interact with its smart contracts.
According to the most recent DappRadar industry report, May was an incredibly successful month for dapps operating on Binance Smart Chain. BSC was the leading blockchain with more than 417,000 unique active wallets at the end of the month. PancakeSwap was the leading dapp, fueling activity with around 350,000 daily unique active wallets.
Bull or Bear?
The cryptocurrency community tries desperately to figure out if we’re headed into another bear market or if the recent activity has just been price corrections. Certain DeFi applications are steaming forward and gathering impressive user activity and transaction volume. Arguably, the success of finance dapps operation on Binance Smart Chain and other chains such as Polygon has been the lower costs of actions.
On PancakeSwap a user can swap one token for another and pay under $1 for that transaction. The equivalent transaction on Ethereum DEX Uniswap may incur a gas fee of up to $30. Considering the waves of new investors heading into crypto in 2021 with smaller investment pots it is no surprise users are flocking to PancakeSwap.
Furthermore, as we potentially enter a bear market, investors are looking for options to stake and earn from their current tokens as a pose to simply holding their assets, which was the situation back in early 2018. Now, users have an abundance of options at their fingertips to try and navigate their way through possible choppy waters. PancakeSwap offers users the ability to stake and farm their crypto holdings to earn more CAKE. The native token of the platform. Looking at the price of CAKE since the biggest dip on Sunday 24th May it appears to be recovering well and has increased 49% in the last 14 days.
What is PancakeSwap?
PancakeSwap is a decentralized exchange for swapping BEP-20 tokens similar to Uniswap or SushiSwap and uses an automated market maker (AMM) model. Simply put, that means that users can trade digital assets on the platform. Importantly, there isn’t an order book and Instead, users trade against a liquidity pool.
Those pools are filled with other users’ funds. They deposit them into the pool, receiving liquidity provider tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees. In short, you can trade BEP-20 tokens, or add liquidity and earn rewards.