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  • Writer's pictureDavid Manion

PancakeSwap on zkSync Era: Why it Matters


PancakeSwap on zkSync Era: Why it Matters
PancakeSwap on zkSync Era: Why it Matters

PancakeSwap (CAKE), a Decentralized Exchange (DEX), has launched PancakeSwap v3 on zkSync Era, which is a Layer 2 scaling solution that enhances scalability, efficiency, and cost-effectiveness for its users. With the growing demand for ZK rollups and L2 solutions among users and builders, PancakeSwap is delighted to provide more opportunities for building and trading on its DEX.


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The Benefits Of PancakeSwap v3’s Swap Feature On zkSync Era

PancakeSwap v3 on zkSync Era introduces 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. Traders can select the fee structure that aligns best with their trading preferences and liquidity pool engagement, with multi-tier fee structures ranging from 0.01% to 1%. This feature offers low trading fees, enhanced liquidity, and reduced slippage for seamless trading of favorite tokens.


In addition, 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. Moreover, 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.


Furthermore, the integration with zkSync Era allows PancakeSwap to increase its transaction capacity and reduce congestion on the Ethereum network. The Ethereum network has become congested, leading to high gas fees and slower transaction times as the popularity of DeFi continues to grow. 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. This integration is expected to pave the way for the mass adoption of DeFi by offering faster and cheaper transactions, attracting more users to the platform, and increasing the adoption of DeFi as a whole.


PancakeSwap on zkSync Era: Why it Matters. PancakeSwap’s Revenue Hit By Market Conditions

According to Token Terminal data, PancakeSwap has experienced fluctuations in its market performance, with a 1.16% decline in its circulating market cap and a 3.22% decline in its fully diluted market cap over the past 24 hours. The total value locked on the platform has also decreased by 0.77% in the same period.


Over the past 30 days, PancakeSwap generated $1.20 million in revenue, indicating a decline of 26.02%. Its annualized revenue has also decreased by 32.11% to $14.55 million, while the trading volume on PancakeSwap for the past year is $40.22 billion, indicating a 16.00% decline.


Despite the decline in revenue and trading volume, 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 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. However, the higher P/F and P/S ratios indicate a higher valuation for the company.


CAKE’s range between $1.40 and $1.55 on the 1-day chart. Source: CAKEUSDT on TradingView.com
CAKE’s range between $1.40 and $1.55 on the 1-day chart. Source: CAKEUSDT on TradingView.com



Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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