PancakeSwap and CAKE token: Let us dig deeper
The decentralized finance (DeFi) industry has grown rapidly in the past few years. According to DeFi Llama, the industry has a total value locked (TVL) of over $200 billion. This is a substantial amount considering that the industry was in its infancy before the pandemic started.
PancakeSwap is a leading player in the DeFi industry. It is a DeFi platform that allows people to swap tokens, earn interest, win rewards, and trade non-fungible tokens (NFT). It is the biggest DeFi platform built-in BNB Chain, which was formerly known as Binance Smart Chain. Its TVL of over $4.9 billion makes it the 10th biggest DeFi platform in the world.
Like other DeFi platforms, PancakeSwap has its own governance token known as CAKE. According to CoinGecko, the coin has a total market cap has increased by more than $2.3 billion. This makes it the 53rd biggest cryptocurrency in the world.
PancakeSwap (CAKE) price history and technical analysis
DeFi tokens, like other cryptocurrencies, have underperformed in the past few months, even as the ecosystem has grown. A look at CoinGecko shows that Uniswap is the only DeFi token in the top 50 of the biggest coins in the world. In the past, many of them, like PancakeSwap, Aave, and Maker, were in the top 50.
On the daily chart, we see that the PancakeSwap price has been in a strong bearish trend in the past few months. After soaring to a high of $47.73 on April 30th, the coin has crashed by over 83% to the current $8.14. This price is slightly above the important support at $5.31, which was the lowest level in 2022.
PancakeSwap is hovering at the 25-day and 50-day moving averages while the Average True Range (ATR) has declined. That is a signal that the coin’s volatility has declined sharply. The coin has also moved below the descending trendline shown in orange. Therefore, there is a possibility that the coin will likely keep falling in the near term.
PancakeSwap (CAKE) Price Prediction for a Year
PancakeSwap price has struggled this year as demand for DeFi tokens wavered. There are worries that the hawkish tone by the Federal Reserve will hamper the growth of highly-speculative assets. At the same time, there are worries that the industry has gotten extremely competitive, with projects like Anchor Protocol, Curve, and Convex Finance growing their market share.
Meanwhile, on the daily chart above, the coin has also formed a descending triangle pattern. Therefore, there is a likelihood that the coin will keep falling in 2022. If this happens, the coin could drop to $5. According to Long Forecast, the coin will continue its bearish trend and reach a low of $2.91. On the other hand, Digital Coin Price estimates that PancakeSwap will average about $10 this year.
PancakeSwap (CAKE) Price Prediction for 2025
All factors held constant, the DeFi industry will continue growing in the next few years. Besides, the total amount in the sector has moved from less than $50 million three years ago to over $200 billion. However, it faces significant challenges such as regulations and competition. It is also unclear whether the growth of the industry will also correlate with DeFi tokens.
According to Digital Coin Price, the coin will average $16.16 in 2015. According to Long Forecast, the coin will start 2025 at $5.65 and then end the year at just $4. On the weekly chart below, we can identify the support and resistance levels to watch in 2025 to be $5.47 and $13.71, and $21.
PancakeSwap (CAKE) in Questions & Answers
Is PancakeSwap Coin real?
Yes. CAKE is a real cryptocurrency. It is used as the governance token for the PancakeSwap ecosystem.
Will PancakeSwap reach $100?
PancakeSwap faces a difficult journey to get to $100. It needs to first rise by 500% to get to its all-time high of $47. After this, the coin needs to more than doubled to get to $100. Therefore, it is highly unlikely that the coin will get to $100.
Should I buy PancakeSwap Coin?
PancakeSwap seems to be a high-risk coin because of the state of the competitive nature of the DeFi industry. Also, the daily chart shows that the coin has formed a descending triangle pattern. Therefore, it is recommended that you wait for a bullish trend to start.
How much will be PancakeSwap be in five years?
The future of PancakeSwap is hard to predict because of the existing risks of regulations and competition. As shown above, Long Forecast expects that the coin will be at $4 in 2025, while Digital Coin Price estimates that it will average about $16.16.
Where do I buy PancakeSwap?
PancakeSwap is a popular cryptocurrency. Therefore, it is offered by most centralized exchanges like Coinbase, Binance, and Kraken. It is also provided by other decentralized tokens like PancakeSwap and SushiSwap.
This article represents the views of the author. Cryptocurrencies are highly speculative assets, and the author will not be held liable for any losses.
