PancakeSwap has solidified its position among decentralized exchanges, standing out as one of the leading ones this past week due to significant recovery. This has also influenced the increased appetite for the CAKE token.
Volume Growth and PancakeSwap's Standing
According to TCC, PancakeSwap secured a spot among leading DEXs by volume. Per Coinmarketcap's DEX ranking, PancakeSwap amassed over $1.324 billion in daily volume, second only to HyperLiquid with $2.8 billion. These robust volumes indicate a return of excitement in the crypto segment, aligning with the relief rally observed over the past 5 days.
CAKE's Price Recovery
The uptick in PancakeSwap's DEX volume this week resulted in increased demand for its CAKE token, combining with demand from the spot and derivatives segment to yield a 14% plus price surge in the last 24 hours. CAKE was observed trading at $1.86. This bullish surge allowed CAKE to finish strong and recover from recent lows. It stands at a 33% premium from recent local lows, possibly facing resistance between $2 and $2.3 if it sustains its upward trajectory this week. CAKE also gained 10.26% over the last 7 days, securing a spot among the top performing coins in the top 100 by market cap.
Liquidation Risks Amid CAKE Volume Surge
CAKE's bullish price action was supported by a notable surge in volume within the derivatives segment, amounting to $124.28 million and surging by 290.88%. Open interest also increased by 35.19% during the same period. However, the spot segment showed weaker activity with an outflow of $52,710 over the last 24 hours. The difference between spot and derivatives activity suggests highly leveraged moves that might lead to substantial liquidations. Previous upticks in December and February involved whale activity, but the latest data from IntoTheBlock showed relatively weak demand from whales, which could limit further upside.
PancakeSwap continues to cement its market position as it ranks among the top DEXs by volume. The notable CAKE price surge reflects increased interest and trading activity, but the disparity between derivatives and spot market volumes may pose liquidation risks moving forward. Despite the current rally, weak whale activity could limit potential for further growth.
