CAKE, the native token of decentralized exchange (DEX) PancakeSwap, surged to a 5-month high amidst a broader market rally.
Analysts are growing increasingly optimistic that the altcoin could see further gains, driven by BNB’s (BNB) latest uptrend, which propelled it to a new peak just hours ago.
BeInCrypto reported that BNB has been on a remarkable rally lately. The coin’s value has apprecaited 31.4% over the past month. In fact, BeInCrypto price data revealed that BNB hit an all-time high of $860 today.
The increase in the altcoin’s value has sparked growing optimism about what some are calling a ‘BNB Season,’ which could spur growth across the BNB ecosystem. In fact, many believe that PancakeSwap, a leading multi-chain DEX originally built on the BNB Chain (formerly Binance Smart Chain), could benefit significantly.
But why would a rise in BNB impact PancakeSwap? According to data from DefiLlama, PancakeSwap is currently the top DEX in terms of total value locked (TVL) and trading volume on the chain. This strong position within the ecosystem makes the platform a key beneficiary of BNB’s growth.
PancakeSwap also leads DEX activity across the broader ecosystem. Over the past month, the platform has recorded a trading volume of $185.329 billion, outpacing competitors like Uniswap, Raydium, and Meteora. This highlights PancakeSwap’s strong position in the market.
Notably, the BNB Chain accounts for the majority of users and trading volume on PancakeSwap. Data from Dune Analytics shows that the BNB Chain contributed significantly to PancakeSwap’s activity, with a cumulative user count reaching 54.59 million and a total volume of $1.90 trillion.
This deep integration with the BNB Chain further solidifies PancakeSwap’s role as a leading platform in this growing ecosystem. However, a factor that stands out the most is the impact of BNB’s rally on CAKE’s price.
After BNB recorded new highs yesterday, CAKE’s value surged to surpass $3 for the first time since mid-February. BeInCrypto data showed that the token’s price has increased 13.4% over the past day. At the time of writing, CAKE was trading at $3.23.
While the growth is remarkable, analysts believe that there’s still scope for more.
“When BNB hits a new high, the BNB ecosystem will recover strongly, starting with CAKE, followed by memes and tech tokens on BNB Chain,” an analyst wrote.
Meanwhile, another analyst claimed that CAKE is ‘undervalued.’ He forecasted that the DEX token has a lot of room to grow and could reclaim its previous peak.
“BNB is trading at all-time highs, while the main DEX token on BSC still has 15x potential just to reclaim its previous ATH,” the post read.
As BNB Season gains traction, PancakeSwap stands to benefit from the heightened interest in the ecosystem. Whether CAKE actually rises as analysts predict remains speculative, but the alignment of fundamental factors positions it as a key player in the unfolding DeFi narrative.
