PancakeSwap Joins The Ranks Of DeFi Giants On zkSync Era: Here’s Why It Matters
28 July 2023 - 11:00AM
NEWSBTC
Decentralized Exchange (DEX) PancakeSwap (CAKE), has announced the
launch of PancakeSwap v3 on zkSync Era, a Layer 2 scaling solution
that promises to deliver improved scalability, efficiency, and
cost-effectiveness to its users. According to the announcement,
with the popularity of ZK rollups increasing and users and builders
increasingly looking to L2 solutions, PancakeSwap is thrilled to
offer users and developers even more reasons to build and trade on
its DEX. The Benefits Of PancakeSwap v3’s Swap Feature On zkSync
Era PancakeSwap v3 on zkSync Era comes with several exciting
features, including Swap, Liquidity Provision (LP), Farms, and
Initial Farm Offering (IFO). The Swap feature allows users to
enjoy quick and cost-effective token swaps through a user-friendly
interface. With multi-tier fee structures ranging from 0.01% to 1%,
traders can select the fee structure that aligns best with their
trading preferences and liquidity pool engagement. With low
trading fees, users can trade their favorite tokens seamlessly
while enjoying enhanced liquidity and reduced slippage. Related
Reading: Solana (SOL) Records Positive Moves As Bears Took Control,
What’s Pushing It? Moreover, the Liquidity Provision feature lets
users become part of PancakeSwap’s thriving decentralized exchange
ecosystem by providing liquidity. Liquidity providers earn passive
income through trading fees when people use their liquidity pool to
complete swaps. Per the announcement, with the scalability of
zkSync Era, users can maximize their returns, achieving an
impressive capital multiplier of up to 4000x. Users can engage in
Swap, LP, and social media tasks to earn loyalty points and unlock
exclusive NFTs. The Galxe campaign provides an opportunity to
explore and experience the power of PancakeSwap on this ecosystem,
unlocking the full potential of the platform. Ultimately, the
integration with zkSync Era allows PancakeSwap to increase its
transaction capacity and reduce congestion on the Ethereum network.
As the popularity of DeFi continues to grow, the Ethereum network
has become congested, leading to high gas fees and slower
transaction times. By leveraging Layer 2 scaling solutions
like zkSync, PancakeSwap can significantly increase its transaction
capacity, reduce congestion, and offer users a more reliable and
cost-effective trading experience. What’s more, the integration
with zkSync Era is expected to pave the way for the mass adoption
of DeFi. By offering users faster and cheaper transactions,
PancakeSwap can attract more users to the platform, increasing the
adoption of DeFi as a whole. PancakeSwap’s Revenue Hit By
Market Conditions PancakeSwap has experienced some fluctuations in
its market performance recently. According to Token Terminal data,
PancakeSwap’s circulating market cap is currently $313.88 million,
with a 1.16% decline in the past 24 hours. Meanwhile, its
fully diluted market cap has declined by 3.22% in the same period,
currently standing at $1.12 billion. Related Reading: Sui
Foundation Dumps MovEX After Contract Violation Similarly, the
total value locked on the platform has also decreased by 0.77% in
the past 24 hours, currently sitting at $1.23 billion. Over the
past 30 days, PancakeSwap has generated $1.20 million in revenue,
representing a decline of 26.02%. Its annualized revenue has also
decreased by 32.11% to $14.55 million. The trading volume on
PancakeSwap for the past year is $40.22 billion, indicating a
16.00% decline. The fully diluted P/F ratio of PancakeSwap has
increased by 31.2% to 26.21x, while its P/S ratio has also
increased by 29.1% to 76.46x. In the past 30 days, PancakeSwap has
generated $3.49 million in fees, representing a decline of 27.23%.
Its annualized fees have decreased by 32.59% to $42.45 million.
These figures suggest that PancakeSwap’s performance has been
impacted by recent market trends. Despite the decline in revenue
and trading volume, the platform’s P/F and P/S ratios have
increased, indicating a higher valuation for the company. Featured
image from Unsplash, chart from TradingView.com
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