PancakeSwap v3 version recently has been installed on the BNB Chain blockchain, and the timing mightn’t have been more ideal. The expansion reinforces the expanding DeFi horizon, especially now that the crypto sector is facing a lot of pressure from Western regulators.
The newly introduced PancakeSwap V3 is already off to a good start. According to DappRadar’s analysis, following the introduction of PancakeSwap V3, the number of unique active wallets (UAW) on the BNB Chain increased drastically.
The same analysis also highlights the incentives that may be fueling the UAW wave. The new platform is said to offer a wider range of tools and lower trading fees compared to the previous iteration.
The upgrade also benefits liquidity providers (LPs) due to higher yields. This particular development may attract more new LPs to the network, which is expected to increase the total pledged value of PancakeSwap.
Binance CEO CZ also welcomed the launch of PancakeSwap V3 on the BNB chain and stated the need for more DEXs. His opinion is probably a response to the point highlighted at the beginning that Western regulatory authorities have targeted centralized exchanges. This may result in a flow of users from centralized exchanges to decentralized exchanges in the near future.
PancakeSwap V3 can trigger multiple intrachain activities on the BNB chain
The surge in UAWs is also consistent with recent on-chain observations of user activity. On PancakeSwap, for example, in the last two days, the number of daily active titles has also increased significantly.
The number of active titles reached a weekly high on Tuesday with just over 18,000 active titles. In contrast, two days earlier there were only 67 active addresses on the network.
But that’s not all. PancakeSwap has seen a significant spike in volume especially in the last 24 hours. One of the possible reasons for the increase in volume is that users are probably already releasing more trading activity and liquidity through the BNB chain.
Likewise, the weighted sentiment indicator has also been steadily rising over the past seven days, confirming that more traders were anticipating a bullish outcome.
The value of the CAKE token has fallen slightly over the past two days despite investors being in a bullish mood. However, this positive sentiment has finally been reflected in price action over the past 24 hours, with bulls rallying 9% and pushing the price to a new 4-week high at $3.8.
At the same time, profit realization was also outstanding, and this pushed the exchange rate back to the level of $3.6. The rising exchange rate also reflects the expectation of significant inflows, which is also supported by the Money Flow indicator.
Published on the BitcoinBázis page.