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Is PancakeSwap (CAKE) a Good Investment?

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CAKE Good Investment

Decentralized exchanges (DEXs) have revolutionized the entire crypto ecosystem. Without DEXs like Uniswap, DeFi projects would never be able to gain widespread popularity. PancakeSwap is the main competitor to Uniswap, and it can soon become the most popular decentralized exchange on the market. But what is PancakeSwap really, and is CAKE a good investment in 2021?

What is PancakeSwap?

Pancakeswap-homepage

PancakeSwap is a decentralized exchange with an integrated automated market maker (AMM) function. It’s a DeFi solution allowing crypto enthusiasts to effortlessly buy and sell digital currencies.

PancakeSwap was launched in September 2020 as an alternative to Uniswap. Although Uniswap managed to quickly gain tremendous popularity and became the largest DEX in the ecosystem, it also has one significant problem: it was built on the Ethereum network.

Ethereum is one of the oldest blockchains on the market. ETH was created in 2015, many years before the invention of decentralized finance.

In other words, Ethereum was not designed with DeFi in mind. When DeFi got really popular, the Ethereum network started to have enormous problems with efficiency. Transaction fees and times became so high that many people stopped using ETH altogether, and blockchain developers started to look for alternative solutions.

Binance Smart Chain: The DeFi-focused Ecosystem of PancakeSwap

Unlike Uniswap, PancakeSwap is not built on the Ethereum network. Instead, PancakeSwap utilizes Binance Smart Chain: a new, innovative blockchain created by Binance – the largest cryptocurrency exchange in the world.

Binance Smart Chain was created specifically to meet the demands of DeFi enthusiasts and creators of decentralized finance solutions. Even in times of peak network usage, Binance Smart Chain provides superb efficiency to all DeFi projects.

By utilizing Binance Smart Chain, PancakeSwap is able to offer the users functionality far surpassing Uniswap. With PancakeSwap, DeFi investors can trade innovative digital assets 24/7, without ever having to worry about high transaction times and fees.

CAKE: The Native Token of PancakeSwap

CAKE-USD-Chart

CAKE USDT chart

Just like Uniswap has its UNI token, PancakeSwap also has its own, unique token: CAKE.

Since PancakeSwap is built on Binance Smart Chain, it doesn’t utilize the ERC-20 token standard. Instead, it’s using an innovative token architecture called BEP-20.

CAKE is a multi-functional DeFi token allowing users of the PancakeSwap exchange to enjoy many extra benefits. CAKE can be used to trade a large number of BEP-20 digital assets on the platform, purchase unique Non-Fungible Tokens, and it can also be staked to either earn more CAKE, or to earn other tokens.

CAKE holders are also eligible to enter a special lottery on PancakeSwap. A lottery takes place every 6 hours. A single lottery ticket costs 10 CAKE, and the winner takes 50% of the total lottery pool.

The CAKE token has been rapidly growing in popularity over the past few months. CAKE is already one of the top 30 digital currencies by market capitalization, and the second-largest BEP-20 token, surpassed only by Binance Coin (BNB). The continuous growth of PancakeSwap and of Binance Smart Chain, in general, is why many experts consider CAKE a very good investment.

CAKE Price Predictions for 2021

The PancakeSwap has been performing excellently during the ongoing crypto bull run, and members of the community are convinced that the CAKE price will continue to grow throughout the year.

Ever since its launch, Binance Smart Chain has been growing at a tremendous pace, which greatly contributed to the PancakeSwap popularity. As new projects are launched on Binance Smart Chain every day, the volume of assets traded on PancakeSwap continues to increase, and so does the price of the CAKE token.

For a large number of crypto enthusiasts, $50 is seen as the minimum goal for the CAKE price in 2021. CryptoZeinab, one of the most popular Twitter crypto analysts, believes that level to be as a realistic CAKE price prediction for the end of the year:

Another popular crypto researcher on Twitter, Kraze Mike, shares a very similar PancakeSwap forecast. He gives $51 as his precise CAKE price forecast for 2021:

PancakeSwap Price Forecast According to the Experts

Youtube analysts are enthusiastic about PancakeSwap, and their CAKE price predictions are very bullish. Experts are surprisingly unanimous when it comes to PancakeSwap, and most of them believe that the CAKE value will even be able to reach $100 by the end of 2021.

Radies Rajakulam – is a popular YouTube channel specializing in analyzing the most popular digital assets. According to Radies Rajakulam, CAKE will be able to reach $100 by the end of the year due to the increasing popularity of Binance Smart Chain as well as the solid technical fundamentals of PancakeSwap.

Another popular YouTue analyst sharing the $100 CAKE price prediction is the researcher going by the name Crypto Bull. He compares the volumes of PancakeSwap and Uniswap, and the market capitalizations of Binance Smart Chain and Ethereum, arriving at the conclusion that CAKE still has a lot of room for growth, and that the CAKE price can easily reach $100 by the end of the year.

Hamzef Alasfar is another YouTube researcher agreeing on the $100 end-of-the-year price forecast for CAKE. Alasfar compares the technical fundamentals of PancakeSwap and Uniswap, but also focuses on the fact that PancakeSwap is backed by Binance. According to Alasfar, the CAKE price might skyrocket soon because PancakeSwap is operating on the blockchain network launched by one of the largest companies in the crypto industry.

Who Is Behind PancakeSwap?

Just like Bitcoin, PancakeSwap was launched by anonymous founders. Since the project is built on the Binance Smart Chain it is strongly backed by Binance, the largest crypto exchange in the world.

How Do You Get PancakeSwap?

The PancakeSwap token (CAKE) is already one of the most popular cryptocurrency tokens and is continuously growing at a rapid pace. Because of that, CAKE can be purchased on almost all of the most popular exchanges such as Binance or Coinbase.

Can PancakeSwap Reach $100?

A large number of experts believe that the PancakeSwap price can reach $100 by the end of the year. However, some analysts are more cautious and give lower PRICE forecasts for 2021.

Is PancakeSwap (CAKE) Dead?

PancakeSwap (CAKE) is not dead reading from the impressive numbers posted by the swapping protocol on the Binance Smart chain (BSC).

The swapping protocol is the most active in the blockchain and preferred by projects launching on the high throughput, scalable, and low-fee network.

To highlight how valuable CAKE is, the protocol controls over $3.7 billion of assets in BSC.

At the same time, its native token is priced the same as Uniswap’s UNI—despite the latter’s launching much earlier. As of late July 2021, PancakeSwap had a market cap of $2.4 billion.

If numbers don’t lie, there is no doubt PancakeSwap is here to stay, providing an opportunity for savvy traders and investors to reap maximum benefits.

Is PancakeSwap a Good Investment?

PancakeSwap is currently one of the most rapidly expanding decentralized exchanges in the crypto ecosystem. It’s a serious competitor to Uniswap, but it utilizes a more efficient, strictly DeFi-oriented blockchain infrastructure. Because of that, PancakeSwap is generally considered a good investment.

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