At one point in time, Bitcoin was the only cryptocurrency. It feels almost hard to believe now, with as many as 22,904 crypto tokens in existence and around 43 million active crypto traders. But back in 2009, the elusive Satoshi Nakamoto created the whitepaper for the very first cryptocurrency, with most of the population entirely unaware of the snowball effect that would follow. That snowball in question has hit a few mounds on its way, it has to be said. Altcoins like BCC, SAFE, UST and LUNA have ridden the wave of the rising digital commerce market, only to break away from the strength of blockchain and plunge into darkness – a fact that has so far proven to be irreversible.
But despite these failures, there have been many altcoins that have clung to the snowball and begun to entirely rearrange its shape. Coins like ETH, USDT and BNB have rattled the crypto landscape over the last ten years, with the possibility that they might even overtake BTC as the most valuable coin in the next ten. Even lesser known coins – or memecoins – such as Dogecoin and PancakeSwap have made waves of their own. In fact, often it is these coins that can create the most revolutionary impact. For instance, the PancakeSwap Price might not be as high as some other altcoins, but the premise behind it is enough to make it a serious investment for traders who are looking for long-term profit.
What Is PancakeSwap?
To give a little detail, CAKE (the PancakeSwap coin) is a decentralised token that is native to the BNB smart chain – meaning it does not have its own blockchain. PancakeSwap itself is an automated market maker, offering a range of decentralised services that goes beyond simple trading techniques. These include yield farming, liquidity mining, coin swaps, as well as regular lotteries. On the PancakeSwap platform, holding a CAKE token can allow users to form a sort of governance body, making important decisions concerning future development – and the higher CAKE holdings a user owns, the higher their voting power.
Right now, it has one of the highest user bases for any dAPP, not least due to the strong, secular growth that the decentralised finance space has enjoyed over the last few years. As mentioned previously, a coin like this has a wide range of benefits when it comes to cryptocurrency’s future, but that is largely due to the benefits it offers now:
The Benefits Of PancakeSwap In 2023
One of PancakeSwap’s main rivals is Uniswap, which exists inside the Ethereum blockchain. The reason many users see CAKE as a better investment, however, is because the fees are far more manageable, sitting at 0.2% for those who utilise liquidity in their pools. Fees are also not paid in ETH which – given the troubles of Ethereum post-merge and the increase in fees – allows for higher profit margins and more transactions to be made on the platform itself. The reason PancakeSwap has attracted such a big community, in fact, is due to the competitive transaction fees that have become one of the main drivers of the network itself.
Speaking of liquidity, this is one of the other benefits of existing inside the Binance smart chain. The CAKE token has a high daily volume, meaning it is particularly useful for short-term investors who are looking for tokens to quickly stake. Compared to many other altcoins, CAKE is easy to get into and out of, with a wallet integration that makes it open for all. As well as this, staking CAKE can provide a particularly high return, especially if done through yield farming. CAKE offers a unique utility, with a number of options for holders to generate an ongoing return.
The Future Of PancakeSwap
Those are the benefits of PancakeSwap right now, but there are many factors to this coin that could make it a pretty revolutionary presence in the market’s future. In a way, it harkens back to the very basic concept of cryptocurrency – something that BTC and ETH may since have lost sight of. Cryptocurrency is all about giving control to the user, allowing them to run their own platform whilst generating a passive income. This, in many ways, is identifiable in PancakeSwaps sudden rise in popularity. Users want a way to gain a return, whilst also having a strong, meaningful say in governance, with low fees and more control on how they stake and trade the coin itself.
It speaks volumes that the landscape of crypto itself has been bearish in the last couple of years, whilst the sentiment towards CAKE has been undeniably bullish. According to experts, PancakeSwap could hit $100 over the next few years, especially seeing as it is already one of the top-gaining cryptocurrencies of 2023. It is clear that, amongst all of the 22,904 crypto tokens on offer, users simply want efficiency, safety and clarity. The future of crypto, therefore, might be dictated by altcoins like this, which allows them to govern and stake in the way that they want to, without complications or the difficulties of being tethered to high trading fees. In this way, the next few decades of cryptocurrency might not be very complicated. In fact, the message of investors is simple: they want to have their CAKE and eat it.