PancakeSwap Is One Year Old | Data on TVL, Trading Volume, Users and Supply

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PancakeSwap was launched back in September 2020. It has been around a one full year now. In this first year it has gowned a lot, together with the overall Binance Smart Chain ecosystem. What started as a Uniswap fork, continued to build on and now is no.1 DEX in terms of users.

A new addition to the platform were added like farm and pools, staking LP tokens, then prediction market, IFOs and next they are aiming for the NFTs area next.

The low fees on BSC and the dynamic tokenomics, ease of use has made this platform attractive to new and old users. They have outperformed Uniswap in most of the metrics, except the market cap 😊.

Let’s take a look at some of the data!

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Games like Splinterlands, using the Pancake platform is another proof for its usability in the space. The centralization aspect of BSC always will remain as a con, but for what is worth Pancake started without presale, premine etc. All the tokens in circulation were distributed as rewards to the users and liquidity providers on the platform.

Here we will be looking at:

  • Total Value Loc TVL
  • Trading Volume
  • Numbers of users
  • Top pairs
  • Price

The period that we will be looing at is form December 2020 to Septenber 2021.

PancakeSwap has been around since September 2020, but it started to take of in December 2020. The numbers in the first two months are almost not visible on the chart.

Historical Data on Total Value Lock on Pancake

Here is the chart.

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As we can see up to January 2021 the TVL on Pancake was quite small in terms of hundred of millions. The in January it started to grow and really exploding in February 2021, reaching more than three billion.

A short period of consolidation and then a strong up move in April and the beginning of May with a ATH in TVL of 10B. A correction followed, with the overall correction of the market and now PancakeSwap has around 5B in TVL.

Note that there was a shift from V1 to V2 for the liquidity (the sharp drop). Also the above is only liquidity deposited in trading pairs, not in the pools. If we take the pools some platforms show a total of 10B in liquidity ATM.

Trading Volume

Here is the chart for the trading volume.

image003.png

This is quite a volatile chart with some data missing as well.
We can see that it follows the TVL overall with a strong growth in February 2021, and even higher uptrend in April and May. In the last months we are seeing a more stable trading volume per day around the 1B mark.

A note on the trading volume. Unlike the TVL where capital is locked in smart contracts, the trading volume can be played a bit with wash trading. Since the fees are smaller on BSC its cheaper to wash trade there. It also can be happening on Uniswap as well. The main point here is that the trading volume should be taking with some reserves due to possible wash trading. Still more legit than most of the CEXs where the trading is on a central servers and zero fees 😊.

Numbers Of Users

I have extracted some data for the historical numbers of users beffore and ploted them in a chart, but these days there is less and less sources at least to my knowadge. I have used the Graphql.bitquery in the past, but now that query is far of from some of the numbers from the dapp aggregators like dappradar who is showing around 300k daily users.

There was around 300k DAUs on Pancake back in April as well, but there was a lot of volatility. Now sees more sustainable. Before the latest moves up, there was somewhere around 50k to 100k DAUs on Pancake and on monthly levels the numbers are in millions. This is much more from the no.1 competitor Uniswap.

Top Pairs

Here is the table for the top 10 pairs on September 25, 2021.

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The BNB-CAKE pair is on the top with 660M in liquidity.
Another BNB pair, the BNB-BUSD pair comes on the second place. The stablecoins pair BUSD-USDT is third.

We can notice a lot of the top pair are with BNB. Out of the top 10, five are paired with BNB. This is locking more BNB and putting it to use.

We can se the stables to stables pair in the top as BUSD-USDT, and BUSD-USDC.

CAKE Supply

Here is the chart for the CAKE supply.

image009.png

CAKE inflation is a bit wonky with print to burn coins.

Initially CAKE had a 40 tokens per block inflation, then they reduce it to 25 and just recently to 15 tokens per block. The thing is the reduction in the inflation is not effective but, the difference is printed and then burned. At the moment 25 tokens per block are burned. Also there are burnings from lottery, IFOs, prediction markets, account registrations etc.

At the moment there is around 11.5M CAKE created per month, or around 130M per year. They might be some more burning from this amount. If we add this to the current supply of 225M, the inflation is somewhere around 50%, and dropping each day.

With this after a period of high inflation and high growth, CAKE seems to be meeting some balance point, and soon it will reach 30% inflation that is quite sustainable level for defi crypto. In the past the inflation was at 300% and more percent.

IMO Pancake has used the inflation in the right way, to growth as one of the most used defi app, even though it didn’t came first to the party. With relatively low inflation now, it is up to the fees to make up for what is loss from the inflation. Maybe we will see higher fees for swaps going forward.

At the moment CAKE is ranked at the 37 spot with 4 billions in market cap. Will see where things go from here.

Price

At the end the chart for the price.

image011.png

CAKE has been trading under a dollar at first. Then the price kept growing to 17$, had a pullback to 10$, and then up again to ATH of 40$, and a correction to 15$.
In the last period the price has appreciated again to 25$ and had a drop in the last few days with the overall crypto market to a 19$.

Overall, quite an impressive numbers for PancakeSwap. Will be interesting how things move going forward with the project, they seem to be putting out constant updated and have plans for more. It will be interesting to see how the project perform in a bear market, because since its inception there has been only a bull market, with some bearish months.

All the best
@dalz

Posted Using LeoFinance Beta



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18 comments
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If you were to bet for the best performer for the rest of the year, in token price appreciation, on what would you put your bet, CAKE, UNI or SUSHI?

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(Edited)

Ha ... hard to do it... Not so bullish on sushi, but between CAKE and UNI its a hard one.
Holding both I guess :)

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If US wasn't so aggressive against competitors (as we have seen in the airspace world with airbus or in the tech world with chinese companies) I would HODL $CAKE.

You can see my reply to this post below.

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I've got on CAKE pretty much in the game and I am holding it in the CAKE Kingdom on CUB Finance to earn some extra on top of the regular APY%. With the current returns, even if the price got a correction I am around the same investment, but I hope things will improve across the crypto market and with CAKE as well as there is potential there and a strong platform with new features that preservers users and brings new ones as well.

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Cake should be around for a long time, and hodling should make it worth in rhe long run ... just to have patiance in years :)

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I lost a small fortune in Cub/BNB pool…. No idea why.

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it's great to see how far they have come but they have shown us that we can use it with little trust and great returns

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Very interesting datas as usual @dalz.

I feel PancakeSwap foundits balance as the token is making higher support zone every now and then. In addition, as you said 30% inflation is quite okay in the DeFi world.

The only issue is that Binance Smart Chain is kinda centralized and Binance has been the target of the US government, this is the only thing that keeps me from leveraging a long $CAKE vs other AMM coin.

They have also been innovating in their burn mechanism (lottery, NFTs, etc...) which is nice to see. It is not just a Uniswap clone.

Cheers and enjoy your sunday ;)

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Yep, the centralization of bsc can be an issue

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Part of the reason why PANCAKESWAP was able to achieve such a height is the fact that they were built on a platform with low transaction fee.

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