Pancakeswap is one of the top hundred in Coinmarketcap ranking, it is all about Pancakeswap, a Decentralized exchange abbreviated as Dex, as Uniswap.
PancakeSwap with CAKE tokens is a current price of $17.97. Formed an all-time high of $44.18 reached in April 2021. The total market cap is over 4 billion USD.
If we look at it as a young platform, which merely launches at the end of 2020. But the growth of this PancakeSwap is quite amazing. But is this CAKE or PancakeSwap a good investment? What are the prospects, we will try to find out all the information about PancakeSwap?
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- 1 What is Pancakeswap?
- 2 How does Pancakeswap work
- 3 What is PancakeSwap used for?
- 4 Who is behind PancakeSwap?
- 5 How does PancakeSwap make money?
- 6 What are Pancakeswap Farms
- 7 What is a PancakeSwap coin?
- 8 Pancakeswap NFT Collection
- 9 Is Pancakeswap a good investment?
- 10 Pancakeswap price prediction
- 11 PancakeSwap technical analysis
- 12 Conclusion
What is Pancakeswap?
Previously we have reviewed Uniswap, you may want to reread about Uniswap. PancakeSwap is a decentralized exchange otherwise known as Dex.
Using PancakeSwap allows its users to trade cryptocurrencies and tokens without an intermediary. This became one of Defi’s projects. PancakeSwap for its services uses automated smart contracts that run on the Binance Smart Chain, a blockchain platform run by crypto exchange Binance.
Using the name Pancakeswap at first was simply following the trend of decentralized finance that went with a food theme.
History of PancakeSwap
When did Pancakeswap launch? PancakeSwap launched in September 2020 on the Binance Smart Chain used specifically for BEP-20 tokens. It uses the Automatic Market Maker algorithm. Whereas a user can trade with a pool of liquidity or user-fueled liquidity to enable crypto trading.
This allows users to make the desired exchanges and can get rewards around the clock if they participate in saving coins in the pool. PancakeSwap is a Defi service and is one of the largest DEXs on the Binance Smart Chain. It even outperformed Uniswap several times to become the most popular DEX based on trading volume.
How does Pancakeswap work
This exchange is decentralized in nature, the exchange of tokens in this PancakeSwap takes place through a pool of liquidity between exchanged tokens. With Pancakeswap it is possible to exchange one type of token for another without intermediaries.
While other users who stake their tokens in the liquidity pool get the rewards generated by the transactions. Since PancakeSwap uses the Binance Smart Chain blockchain, it uses BEP-20 tokens. There are several variations of this liquidity provider, if you add BUSD and BNB to the pool, you will receive LP BUSD-BNB tokens instead.
What is PancakeSwap used for?
Although PancakeSwap runs on the Binance Smart Chain blockchain, which is a blockchain developed by Binance. However, Binance does not control PancakeSwap. It is fully decentralized.
Using PancakeSwap allows users to trade cryptocurrencies and allows earning rewards for being a liquidity provider in the pool. Not only that, but PancakeSwap is also a platform for NFT. And also hold a lottery that allows users to hit the jackpot.
Who is behind PancakeSwap?
Who is the team behind the founding of PancakeSwap? We didn’t find a single convincing answer, the profile of the founder of PancakeSwap remains anonymous, even though it is the largest Dex platform on the Binance Smart Chain.
The Reddit community also did not get an answer about the team that became the developers of PancakeSwap. Is the reason, hiding his identity or maybe imitating Satoshi Nakamoto who also remains anonymous until now.
How does PancakeSwap make money?
How PancakeSwap makes money is that traders who use liquidity in the pool are charged a 0.20% fee, of which 0.17% goes into the treasury.
Using PancakeSwap allows one to get passive income for the long term. Users invest in liquidity pools and earn CAKE token fees in liquidity pools. There are several ways how PancakeSwap makes money.
PancakeSwap is an exchange platform, users can trade crypto with one another like crypto trading in general. Using the BEP-20 token, PancakeSwap provides an easy user experience with security and speed.
Farming: This term is used in PancakeSwap which means to invest to earn in PancakeSwap. On PancakeSwap, farming can give users huge returns. When he harvests he will get CAKE in reward. How to start farming is to lock your money to get a reward.
Staking is locking a gecko for a certain period to get rewarded. At first glance, it is similar to farming, but this has a definite deadline. Users can stake in the Syrup pool to get more rewards.
PancakeSwap is also a platform for NFT or Non-Fungible Tokens, where users can collect NFT tokens and make it possible to become a winner in a game. Users can also just keep the NFT as a collection, and maybe in the future, you can sell one of your NFT.
Users can try their luck through the Lottery which is always held daily. but to start it is not free which costs 10 CAKE coins. If you win, you will get a reward as a bonus.
Initial Farm Offering (IFO)
New tokens may offer Initial Farm Offering at launch, participation requires LP tokens that supported the newly token sale in the pool.
What are Pancakeswap Farms
Pancakeswap Farming is a decentralized application that is an exchange based on the Binance Smart Chain. This is a technology that uses an automated market maker (AMM) that allows users to trade using tokens and provides liquidity.
PancakeSwap farming only runs on the Binance Smart Chain, as opposed to staking which runs on the Ethereum blockchain. In PancakeSwap farming uses CAKE as a transaction token for farming.
In PancakeSwap farming aims to get the maximum yield. While Staking is to create a secure network and get rewards. PancakeSwap farming is only compatible with the PancakeSwap platform. Meanwhile, opposed to Staking which supports multiple cryptocurrency exchanges.
PancakeSwap Farming provides a higher yield when compared to Syrup pool. To start, you need some LP tokens to enter the Farm. It takes a little work to set it up. Since the Farm only accepts the exact LP Token, say CAKE-BNB Farm can only accept the respective CAKE-BNB LP token.
PancakeSwap Pool is a liquidity pool market where users can find staking Syrup pools.
To start stake in Syrup pool, go to Pool page. There are manual CAKE and auto CAKE options, the only difference is that Auto Cake will automatically compound the harvest to the respective pool. While manual CAKE does not automatically compound harvests if you want to add to stakes you have to do it manually.
To participate in the Syrup pool users connect wallets compatible with Binance Smart Chain. Compatible wallets include Metamask, Trust Wallet, Walletconnect, Mathwallet, Tokenpocket, Binance Chain, Safepal, and Coin98.
If you navigate to the Pools page by scrolling down, many options provide the opportunity to earn tokens such as the selected pool.
PackeSwap Lottery allows users to get rewards when they win lottery tickets. At this time PancakeSwap lottery is version 2. The difference between Lottery v1 and Lottery v2 is that the distribution of winners is wider so the chances of winning are higher.
How to participate in the PancakeSwap Lottery is to first buy a ticket with the equivalent of $5 CAKE. Then wait for the draw which has a round of 12 hours. When the round ends you come back to check on the winner.
What is a PancakeSwap coin?
The token in PancakeSwap is CAKE, this is the native token used for various purposes in the PancakeSwap environment, including governance, Farming, Staking, and Lottery.
The CAKE token is a BEP-20 token in the Binance Smart Chain. CAKE doesn’t have the maximum supply or Total supply, how to control CAKE supply using the deflationary method. That is by reducing emission blocks which will reduce the distribution of CAKE in the market.
The price of CAKE in the market today since October has been moving in the high range of $22 and low in the $16 price zone.
Pancake swap fees
When a user swaps one token for another, a 0.25% fee is charged, of which 0.17% is returned to the liquidity pool to reward the liquidity provider. 0.03% goes in the PancakeSwap Treasury, and 0.05% will be burned after the buyback.
Pancakeswap NFT Collection
PancakeSwap also has served as a place for buying and selling NFT in the NFT market. NFT creators can register their creations and if there are sales of NFT they will get royalties.
It’s still in Beta at the moment, but according to the roadmap accepting applications for Phase 2 of the Marketplace, which will be released in Q4 2021. Because it uses Binance Smart Chain for NFT transactions using BNB for which sellers will receive wrapped BNB or WBNB in their wallet.
The NFT currently available is only a collection from PancakeSwap, and there are many NFTs in the form of unique images such as Lottie with the lowest price of 36.30 USD or equivalent to 0.06699 BNB.
There are various kinds of NFT collections which are divided into several groups of items including:
- Pancake Bunnies with 14,194 listed items. the lowest price is 0.037 BNB.
- Pancake Squad with 4,519 listed items, lowest price 2,489 BNB.
- BornBadBoys with items listed at 1.871, the lowest price is 0.180 BNB.
- BornBadGirls with listed items 1,057, Lowest price 0.270 BNB.
- WolfAngers with 181 listed items lowest price 0.980 BNB.
- ShitPunks with listed items 1,816, lowest price 0.275 BNB.
- Kalmy’s Universe with 27 listed items and the lowest price of 1,490 BNB.
- CYBERBEARZ ARMY with 32 listed items, lowest price 0.280 BNB.
Is Pancakeswap a good investment?
Some analysts believe that Pancakeswap will have a bright future. Because Pancakeswap became one of the largest DEX with a total transaction of $300 million daily in early November 2021.
Another reason is that more than 75 million active users make transactions in just one year. PancakeSwap also provides attractive services with various investment variations.
The investment innovations made by PancakeSwap as described earlier provide opportunities for attractive long-term income. Farming, Staking, Lottery, trading are the reasons why PancakeSwap’s growth is fast.
However, there is no guarantee that PancakeSwap will be a safe and profitable investment with very high yields.
There is a risk in every investment. For example, if a new platform emerges that offers similar innovations with higher yields, PancakeSwap adoption may decline. Or a high dollar inflation rate, of course, will affect the yield. The numbers may be the same, but high inflation makes the value of money lower than goods and services.
Pancakeswap price prediction
Here are the predictions of experts from several forecast sites for PancakeSwap CAKE.
Wallet Investors see CAKE as an awesome asset that could reach a price of $41,211 in 2022 the same month. And reach $133,343 by 2026.
Cryptonewsz predicts the price of CAKE in 2021 to reach $30, 2022 forecasts a price of $35. 2023 forecasts prices in the $40-$50 range. 2024 predicts a price of $60. And 2025 predicts a price of $67
Gov Capital forecasts a gain for CAKE next year to reach 435.811% with a forecast price of $94.
Longforecast forecast December 2021 CAKE price to decline -6.2% at $16.58 price level. 2022 forecasts a rise at the $21.69 price level. 2023 predicts a decline in gains at the $17.22 price level. 2024 forecasts $25.23 price level. 2025 forecasts $28.91 price level.
Ripple Crypto news forecasts CAKE prices in late 2021 to hit $60 highs and $40 lows. 2022 predicts $100 price level. 2023 predicts $150 price level. 2025 forecast $300 price level
PancakeSwap technical analysis
The price level is not $18.43, down 1.56%. Price movements since October have tended to be sideways but there has tended to be a decline in prices. The lowest price that acts as support is at the $16 price level.
CAKE possible to bullish.
Focusing on the Stochastic and RSI indicators, we see that the price has just come out of the oversold price zone. Both indicators are oscillators with leading signals.
The price has left the support zone even though the MA cross has not given a Buy signal.
We predict the CAKE price to gain a resistance zone at $26, this refers to the price history and widespread adoption, and increasing prices that could repeat themselves.
PancakeSwap is a Decentralized exchange that gained popularity in just one year. It is unique because it runs on the Binance Smart Chain and is the largest on the blockchain.
One of the advantages of PancakeSwap is that it provides several investment opportunities with several types of products that can be selected according to interest.
Note: This article is for personal information and opinion only and does not constitute investment advice. Forex, Crypto, CFD are risky trades, each investor is responsible for his/her investment.
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