Binance’s DEX PancakeSwap Surpasses Uniswap Volume; BNB Captures the 3rd Spot
“This has always been our goal, to grow a bit faster than BTC,” said Binance CEO Changpeng Zhao as BNB also makes a new ATH against Bitcoin.
“PancakeSwap delivers” tweets the team as the automated Market maker (AMM) records more volume than the popular decentralized exchange (DEX) Uniswap.
Less than 10 days ago, Uniswap creator Hayden Adams laughed at the prospect of it when Binance CEO Changpeng Zhao advised him to worry about PancakeSwap.
But now, the project that is built on Binance’s own blockchain, Binance Smart Chain (BSC), has actually done it. It started with taking over SushiSwap, and from there, it was a shot to the moon.
“Liquidity will leave the unicorn and flow into cakes leaving many investors on the sideline,” commented trader Moon Overlord.
Zhao is now advising Adams to consider moving to BSC, saying, “Not easy running with weight on your ankles. Follow the users.”
Akin to this, CAKE prices shot up to $19,70, recording a whopping 2,175% jump in the last 30 days.
— CZ 🔶 Binance (@cz_binance) February 19, 2021
This immense growth in the usage of the BSC-based AMM results from extremely low fees on the blockchain compared to Ethereum, where it has been keeping to crazy levels.
Binance actually advertised their chain for its low fees noting that “this makes it ideal for smaller players to enter” the DeFi scene.
On BSC, the average gas price is just over 16 Gwei, and the minimum gas price is just 1 Gwei, as per BSC Scan. As for the Ethereum network, the average gas price is 170 Gwei which went above 700 Gwie during the raging DeFi season last summer.
The total number of BNB paid as transaction fees on the BSC network meanwhile has risen from around 300 BNB to about 4,125 BNB this week. The fact that BNB also powers the decentralized applications on Binance’s own blockchain obviously has the prices of the digital currency skyrocketing to new all-time highs. Today BNB price went to $283 level, up 578% YTD.
With a market cap of nearly $40 billion, BNB is currently the third-largest cryptocurrency, right behind Ethereum, which has a market cap of $220 billion. Ether is currently trading around $1,930, with a 165% surge this year so far. Not just in USD terms, BNB has also made a new ATH against BTC, growing 480x in the last three and a half years. CZ said,
“This has always been our goal, to grow a bit faster than BTC. Not overtaking it, but with so much effort we put in, we want to see it grow a bit faster. Otherwise, we should just buy BTC and not work.”
“BNB is a small market cap coin, should allow for higher growth potential, and carries higher risks than BTC.”
In a recent interview with Bloomberg, CZ said with Bitcoin, “things are just starting,” at current prices, which is “just a reflection of how mainstream Bitcoin has become.”
The CEO also shared that the leading spot exchange is also seeing sustained all-time highs of 300,000 new users every day.