- PancakeSwap unveiled the next features for its V3 DEX.
- The DEX will introduce new features like tiered pricing.
PancakeSwap (CAKE) price moved sideways even after important ecosystem news. CAKE was trading at $3.70, where it has been in the past few days. This price is about 8.9% above the lowest level in March of this year. It has underperformed other popular DEX tokens like GMX and dYdX.
PancakeSwap launches V3
PancakeSwap is one of the biggest DEXes in the world. It was originally built on the Binance Smart Chain but it has expanded to popular chains like Ethereum and Aptos. According to CoinMarketCap, the network’s V2 handled $136 million worth of cryptocurrencies in the past 24 hours. That was much lower than what Uniswap, dYdX, and Kine Protocol handled.
The biggest PancakeSwap news was the launch of the network’s third version on Ethereum and BNB Chain. This new version introduced new features such as extremely low fees for on-chain trades among other counterparts like Uniswap and SushiSwap.
Further, the new version brought new features for its capital efficiency and liquidity providers. For example, it introduced new fee tiers: 0.01%, 0.05%, 0.25%, and 1%. This is an improvement from the second version, which offered its solutions with a single tier of 0.25%.
Read more: How to buy PancakeSwap.
According to the developers, the goal is to ensure that traders in the DEX have extremely low fees while ensuring that liquidity provider earn more money. This balance is hard to execute. As such, the developers will also introduce more features like VIP trading rewards program and a position manager tool.
The biggest challenge for PancakeSwap is that the industry has become increasingly competitive. Some of the top platforms in the sector are dYdX, Uniswap, and Kine Protocol. dYdX has worked to lower its fees and boost its trading platform. As I wrote last week, the developers are working to fully decentralize the platform.
PancakeSwap price prediction
The 4H chart shows that the CAKE price has been in a consolidation phase in the past few days. The coin has formed a symmetrical triangle pattern, that is shown in green. It is also consolidating at the 25-day and 50-day moving averages while the MACD has moved above the neutral point.
Therefore, the PancakeSwap price will remain in this consolidation phase in the next few days and then have a bullish breakout. If this happens, the next key level to watch will be at $4, which was the highest point on March 18.
