PancakeSwap has risen to become the leader among decentralized exchanges (DEX), surpassing all competitors in terms of daily and weekly trading volume. This recovery marks an important turning point after a prolonged decline due to weakening trading volume of tokens on the BNB Chain.
The growth momentum of PancakeSwap has been concurrent with the recovery of activity on the BNB Smart Chain, the main blockchain of BNB Chain that supports smart contracts. Although the number of active addresses has not yet returned to the peak level of 2021, many clear signs of recovery have begun to emerge.
The resurgence of PancakeSwap also coincides with the decline in trading volume on the leading Solana DEXs, which have been affected by the cooling of the memecoin craze. Notably, PancakeSwap has even surpassed Uniswap, despite Uniswap's recent launch of V4 liquidity pools and strong growth in trading volume.
The success of PancakeSwap also reflects the trend of the Binance exchange, which accounts for up to 53% of the total global cryptocurrency trading volume. Notably, PancakeSwap has also seen a significant increase in Google search interest and unprecedented attention from YouTube search queries.
Alongside the revival of PancakeSwap, the BNB token has also recorded strong growth. On February 12th, BNB was among the few assets that grew in value despite Bitcoin dropping to $95,000. Subsequently, BNB recovered quickly and approached the $700 mark as the market regained momentum.
BNB Smart Chain has also seen a dramatic surge in activity in January 2025. Although the number of daily active addresses has not yet returned to the 2021 peak, the network has shown many positive signs. PancakeSwap is currently the leading DEX on BNB Smart Chain, accounting for over 16% of the trading volume of decentralized exchanges compared to centralized exchanges (CEX).
In January, PancakeSwap achieved a record trading volume of over $78 billion, surpassing the previous high in May 2021, and has continued to maintain above-average liquidity in February. Revenue in January reached $6.72 million, and February recorded $5.61 million. The total transaction fees collected in January amounted to $29 million.
BNB Smart Chain currently has $5.4 billion in Total Value Locked (TVL), double the lowest level in 2023. The network also holds $6.43 billion in stablecoins, benefiting from the recent trend of increased liquidity.
The CAKE token plays a crucial role in the PancakeSwap ecosystem, accounting for over 27% of the exchange's trading volume. The CAKE price has recovered to a one-month high of $2.66, supported by periodic token burning.
Although PancakeSwap has regained its level of activity like the previous growth market period, the CAKE price is still far from its peak of over $42, making the token attractive to investors seeking opportunities.
PancakeSwap also regularly organizes campaigns and competitions to encourage users to stake CAKE. In 2024, the exchange has distributed a total of $1.9 million in staking rewards.
Due to these positive effects, CAKE has increased by 37% in the past 24 hours and 90% in the last 7 days, becoming one of the best-performing tokens in the market.
While not entirely dependent on the memecoin trend, PancakeSwap still attracts a large trading volume for blue-chip tokens like Simon's Cat (CAT). The exchange is preparing to list Test Token (TST) - a token that was once controversial but has quickly become a famous meme, thanks to a mention by Binance CEO Changpeng Zhao (CZ) on social media.
Furthermore, PancakeSwap is gradually onboarding new tokens from Binance's memecoin launchpad called four.meme, similar to Raydium and Pump.fun on Solana.
This trend indicates that the demand for speculative and memecoin assets remains strong. PancakeSwap currently holds $1.81 billion in Total Value Locked, providing sufficient liquidity for small transactions and helping the network compete with Solana and Base. With gas fees over 90% lower than Ethereum, BNB Smart Chain has become an ideal destination for scaling and attracting mainstream users.
BNB Smart Chain is an ideal ecosystem for small-scale and low-cost transactions, becoming an attractive playground for on-chain activities. Previously, this network has been at the forefront of the Web3 gaming trend and continues to be a hub for strong memecoin communities, affirming its role in the global blockchain ecosystem.
Check the CAKE price here.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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