The Reason PancakeSwap (CAKE) Exploded 100% in Two Weeks

TL;DR

• CAKE, PancakeSwap’s token, surged 92% in a week, driven by new features like Binance’s CAKE Perpetual Contract and a Position Manager that enhances yield farming.
• The token’s rise followed a period of underperformance, rebounding with integrations for easy crypto purchases and boosted rewards for early Position Manager adoption.
• Amid a general DEX downturn, PancakeSwap’s proactive feature rollout and Binance Labs’ strategic investment have contributed to its recent growth.

PancakeSwap’s CAKE is among the hottest tokens in the crypto community as it recently surged over 92% in the last seven days, turning it into one of the top gainers in the market.

CAKE saw an abrupt selloff during the first months of 2023, flatlining throughout the rest of the year. On October 31, CAKE started its rally, breaking through the 2.45, a price not seen since May.

But what’s driving this explosive growth? PancakeSwap has been deploying several features for its users, this includes the listing of USDⓈ-M CAKE Cake Perpetual Contract on the Binance Exchange, giving PancakeSwap users lots of exposure given the size of the Binance community.

Binance Futures @binance to introduce USDⓈ-M CAKE Perpetual Contract

— PancakeSwap🥞Everyone’s Favorite DEX (@PancakeSwap) November 2, 2023

More recently, PancakeSwap announced the rollout of Position Manager —a collaborative integration between the DEX and other protocol partners. The collaboration seeks to make capital deployment more efficient by automating liquidity provisioning; that way, users can receive higher yields than they would through manual yield farming.

The Position Manager feature supports several coins and stablecoins, including USDT, BNB, BTC, and ETH. To incentivize its use, PancakeSwap increased CAKE rewards over the first four weeks, causing the token to spike even higher.

In conclusion, most of this growth circles back to the recent work done by the PancakeSwap team and their efforts to bring new features to its community, thus stimulating the use of CAKE. A lot of these features have provided more accessibility and ease of use. In September, the DEX integrated with Transak, a Web3 infrastructure provider, allowing the protocol to enable crypto purchases with debit cards, Google Pay, and other methods through Transak.

PancakeSwap Steps Up as DEXs See Positive 1M Growth

The volume across the top DEXs has been quite dismal throughout 2023. According to data from Coingecko, DEXs have registered new lows every month starting in May, reaching levels not seen since 2020. However, we saw an uptick in trading volume in October, with most protocols’ TVLs in the green.

We’ve seen volumes reaching lower levels each month primarily due to the lack of incentives and new features on DEXs (and DeFi as a whole.) That said, DeFi users are always pursuing higher yields, and one of the main sectors that have been given yields above 10% is RWAs, with some RWA-based protocols returning 10% in APY while the median DeFi APY is hardly 3%.

The top DeFi protocols are now stepping up and providing users with new features and tools that can benefit them, all while incentivizing the use of their respective tokens; Pancakeswap is one of the fastest-growing DEXs, for that matter.

It’s worth noting that In June, CAKE soared 9% after Binance Labs made an undisclosed strategic investment.