Binance Lab Announces Investment in PancakeSwap, CAKE Price Surges 9%

• PancakeSwap uses an automated market maker (AMM) approach.
• Despite today’s uptick, the token remains on a long-term downward trend.

An investment in PancakeSwap’s $CAKE token, a utility and governance token, has been made by Binance Labs. PancakeSwap is a BNB Chain-based decentralized exchange. It is part of Binance Labs’ objective to enable the next wave of global blockchain adoption by offering technology development, marketing and support, and enterprise solutions for Web3 transformation.

PancakeSwap, which launched in September 2020, has grown to be the most popular dApp on the BNB Chain, with over 400,000 daily active users. PancakeSwap uses an automated market maker (AMM) approach for trading BEP-20 tokens.

Bill Qian, Head of Binance Labs, stated: 

“PancakeSwap has been leading the development and mass adoption of BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL on BNB Chain, we have and will continue to provide strong support for the project.”

Major Relief Amid Bearish Phase

By 2020, BNB Chain has executed over 3 billion transactions from 163 million different unique addresses, thanks to more than 1,300 active Dapps in various areas, including blockchain games and other non-financial activities like as DeFi, Metaverse, and NFT.

To celebrate the news that Binance Labs has made a significant investment in PancakeSwap, the native cryptocurrency of the platform, CAKE, saw a 9 percent increase in price today. Despite today’s uptick, the token remains on a long-term downward trend. Compared to its all-time high of $43.96 on April 30, 2021, the token price has dropped significantly. Coin prices have fallen to multi-year lows after a volatile month of trading in May. This price loss is in line with the rest of the crypto industry.

According to CMC, the PancakeSwap price today is $4.65 USD with a 24-hour trading volume of $170,878,816 USD. PancakeSwap has been up 7.06% in the last 24 hours.