- PancakeSwap tops the list of DEXs with the highest daily active users.
- CAKE struggles to recap bullish volumes as bears lose momentum.
PancakeSwap has recently emerged as the leading DEX in the market by number of daily active users. Ergo, the question – is this enough to support a shift in sentiment among CAKE holders?
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According to CoinMarketCap, PancakeSwap registered 110,900 active addresses in the past 24 hours alone. This number is about double the number of daily active users recorded by Uniswap, the DEX is in 2nd place. Overall, the ranking is a good indicator of demand for PancakeSwap’s DEX amid sluggish market conditions.
🥞Keep up the sweet energy 💫 https://t.co/HbUQbj0hHe
— PancakeSwap 🥞 #Multichain (@PancakeSwap) March 8, 2023
Is this favorable ranking enough to change CAKE’s current trajectory? While the milestone underscores healthy demand for the network, it doesn’t necessarily translate into strong demand for PancakeSwap’s native token.
The value of CAKE has been declining since February 9. In fact, it is down 21% so far to the price of $3.72 at a time. As a result, it has given up about half of the gains it has made since early 2023.
Source: TradingView
So far, the price has shown some bearish weakness over the past few days, during which it struggled to move down further. The cash flow indicator was in oversold territory at press time, an area where outflows have slowed significantly.
In fact, the price appeared to be approaching a key support zone between the $3.61 and $3.63 price range.
CAKE bulls are getting tired, but demand has yet to pour in
Some on-chain stats from PancakeSwap revealed some interesting observations that could influence the next price move. For example, the weighted sentiment metric recorded an overall rebound over the past 7 days, confirming that investors have switched to a bullish bias.
Source: Sentiment
Weekly volume has declined slightly on average, confirming that the bearish trend is losing momentum. The volatility statistic highlights this perfectly. It slowed in the first week of March, confirming that bearish momentum has stalled.
How much are 1,10,100 CAKEs worth today
Perhaps the metric that stands out the most about CAKE is the distribution of what’s on offer.
Most of the top whales have been fine-tuning their balance over the past 4 weeks. However, the same statistic also recorded flatline buying or selling activity.
Source: Sentiment
The aforementioned observation resonates with the slowdown in selling pressure in recent days. Perhaps this is an indication that the bears are exhausted.
The general expectation is that bulls would swoop in and cause some relief. The prevailing market FUD and investor concerns may be why this has not happened. Not yet anyway.