Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => DeFi tokens => Topic started by: EAA-ALLAH on March 29, 2021, 12:31:15 AM
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Decentralized finance has taken a back seat to nonfungible tokens over the past month but this hasn’t stopped the top DeFi projects from developing and strategizing how to grow their ecosystems and market share.
One project that has outperformed the field as of late is PancakeSwap (CAKE), the Binance Smart Chain-based automated market maker (AMM) that allows users to exchange tokens and earn a portion of fees through yield farming.
If you compare this chart of the average gas fees on Etherum with the chart above detailing the monthly trading volume on PancakeSwap, a correlation can be seen between higher fees and more activity on the DeFi platform.
While Ethereum fees were ballooning, Binance Smart Chain (BSC) emerged as a viable option thanks to numerous cross-chain bridges and low transaction costs. PancakeSwap is the largest, most established DEX on the BSC thus it benefits from the influx of users and Binance's large user base.
Delphi Digital analysts identified Binance's immense ecosystem as another major factor providing a boost for CAKE as its “vast network effect” comes from being the “biggest crypto exchange that’s typically the first choice for retail traders.”
Prospective users can gain access to the BSC by simply withdrawing their tokens from Binance to a BSC-supported wallet. Source (https://cryptonews.net/502959/?utm_source=CryptoNews&utm_medium=app&utm_campaign=shared)
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The more Dex exchanges, the better in the future.
I see pancakes have good trading volume, the 1inch exchange has also switched to the BSC network with lots of promos for liquidity pool providers. Uniswap is popular because of its exchange and airdrop ideas for its users, but the problem of transaction fees has no effect on the Uniswap platform because until now, we still see that the trading volume there is still good.