PancakeSwap’s DeFi Dominance Grows as CAKE Token Lags Behind
While the decentralized exchange racks up record volumes, its native token can’t seem to catch a break—classic crypto irony.
PancakeSwap keeps flipping the script in DeFi. The platform just notched another all-time high in trading volume, yet CAKE’s price action moves like molasses. Traders pile into its yield farms and syrup pools, but the token itself? Stuck in neutral.
The DEX thrives where traditional finance stumbles. No KYC, no gatekeepers—just pure, unfiltered market chaos (and occasional 1000% APYs). Meanwhile, CAKE’s performance makes bank stocks look volatile.
Here’s the kicker: PancakeSwap’s success might be CAKE’s curse. As liquidity floods the platform, tokenomics take a backseat to utility. A familiar tale in crypto—build something revolutionary, then watch the token become an afterthought.
PancakeSwap’s Rise in the DeFi Market
PancakeSwap, one of the decentralized exchanges (DEX) on BNB Chain, is solidifying its strong position in decentralized finance (DeFi). According to the latest data from Dune Analytics, PancakeSwap led in trading volume market share over the past seven days, with an impressive 66.9%.
Not stopping there, DefiLlama reports that the exchange recorded a monthly trading volume of up to $149 billion. This figure surpasses its major competitor on Ethereum, Uniswap, which recorded $86 billion.
Moreover, PancakeSwap’s fees have reached over $120 million over the past 30 days. This has placed the platform in the top 3 and even surpassed Pump.fun, a prominent name in the DeFi space.
This remarkable growth can be attributed to recent technical improvements made by PancakeSwap.
A post on X from PancakeSwap’s official account on May 22 stated that the team optimized its data acquisition mechanism using an internal indexer. This addressed the issue of delayed TVL (Total Value Locked) data from external providers, which lasted over two weeks and affected optimal trade routing on Binance Wallet Swap.
After implementing this solution, PancakeSwap restored optimal routing functionality and collaborated with external providers to build a stronger platform, preventing similar issues in the future. These technical enhancements improved performance but also strengthened user confidence in the platform.
Additionally, the launch of the Infinity upgrade (formerly PancakeSwap v4) in late April 2025 significantly contributed to its current success. This upgrade introduced capital-efficient liquidity pools, hooks, and customizable fees, creating more favorable conditions for liquidity providers on BNB Chain.
These factors have helped PancakeSwap attract many users and transactions, particularly with the MERL token of Merlin Chain, which recorded a trading volume of over $409 million in just 24 hours, according to CoinGecko. Trading volume on PancakeSwap accounts for 59%.
CAKE Price: A Journey Contrasting with the Platform’s Achievements
Despite PancakeSwap’s remarkable achievements, the price of its native token, CAKE, paints a less interesting picture. According to CoinGecko data, CAKE’s price dropped 9% in the past 24 hours, while only rising slightly by 1.6% over the last 7 days.
Currently, CAKE is trading at $2.53, down 93.9% from its all-time high. Although CAKE’s market capitalization still ranks 114th on CoinGecko, this price decline has left many investors questioning the token’s long-term potential.
However, some traders remain confident in CAKE’s long-term potential. Trader huahuayjy commented,
“As long as Binance Alpha continues to thrive, cake will be discovered for its value, and all the transaction fees from Alpha’s volume will see cake take 30%. Cake will soon become the most profitable protocol,” a trader commented.
