PancakeSwap Launches on Base Network
PancakeSwap expands to Coinbase's Layer-2 Base Network to diversify its multi-chain capabilities and accelerate DeFi acceptance.
PancakeSwap, initially operating on the BSC Network, has now extended its reach to Coinbase's Layer-2 Base Network.
Choosing to operate on the Base Network aligns with PancakeSwap's aim to diversify its multi-chain capabilities. The team seeks to benefit from Coinbase's robust ecosystem to accelerate the acceptance of decentralized finance (DeFi). According to PancakeSwap's head architect, this move is designed to offer users more accessibility and functionality than ever before.
PancakeSwap's campaign on the Base Network started on August 31 and will continue until October 19. The campaign is designed to allow users to swap tokens, provide liquidity, and engage in social media tasks to earn loyalty points and unlock exclusive NFTs.
⛵️ Set Sail with @BuildOnBase PancakeSwap on an Unforgettable Adventure!
????️ Join the Traverse campaign and explore our fifth island in the captivating @galxe series.
???????? Engage in token swapping, liquidity provisioning, and social tasks to unlock exclusive NFTs.
Get… pic.twitter.com/midd4TrYsE — PancakeSwap????Everyone's Favorite D3X (@PancakeSwap) August 31, 2023
PancakeSwap has been actively extending its reach to various Ethereum rollups, including Polygon's zkEVM, zkSync Era, Arbitrum, and Linea, after its initial success on the BNB Chain. Each of these rollups offers unique advantages, such as lower transaction fees and faster processing times, making PancakeSwap a versatile platform for DeFi enthusiasts.
Currently, a large portion of PancakeSwap's $1.37 billion in total liquidity is still on the BNB Chain. This liquidity is crucial for any decentralized exchange, as it directly provides better rates and faster transactions. The project aims to develop a more diverse DeFi community by leveraging Coinbase's ecosystem.
The Base Network integration offers users economical and efficient token swaps, a notable advantage for those concerned about high gas fees on other networks. Transaction fees are set to start at just 0.01%, making it a cost-effective option for users.
Despite the expansion, the performance of PancakeSwap's native token, CAKE, hasn't been that positive. The token's price was down by nearly 4% in the last 24 hours at the time of the report, pushing it down to the 103rd spot on the list of top cryptocurrencies.
Interestingly, the announcement led to a surge in PancakeSwap's social metrics, including social volume and dominance. This indicates that while the market may have reacted bearishly, the community's interest in PancakeSwap and CAKE has remained strong.
The token was trading at $1.24 with a market capitalization of over $264 million. Several metrics, including the MVRV Ratio and whale transaction counts, indicated a bearish trend for CAKE. However, it's worth noting that market sentiment can be volatile, and a single announcement or development can turn the tide.