PancakeSwap is a decentralized exchange (DEX) that operates on the Binance Smart Chain (BNB), previously called the BNB Chain. Unknown developers created it in September 2020, and it shares similarities with Uniswap (UNI) on the Ethereum (ETH) blockchain.
Its native token, CAKE, is one of the most significant decentralized exchanges in the digital asset sphere. The platform and the crypto is well known to many crypto enthusiasts, which leads us to its latest and highly-anticipated launch of PancakeSwap V3.
With that, let's consider its price prediction and what gains can be expected from the latest upgrade.
Although the release of PancakeSwap network's version 3 (V3) is upcoming, the value of PancakeSwap's (CAKE) token has decreased and is presently being traded at approximately $3.75.
The value of PancakeSwap has recently experienced a notable decline, dropping from a little over $4 to $3 range. However, an optimistic forecast for PancakeSwap's value suggests it may become more favorable and rise above the $3 mark.
The decline in the value of PancakeSwap may be due to several factors, such as overall market conditions, technical difficulties, regulation modifications, or geopolitical circumstances.
Regulatory Crackdown and Risk-Off Sentiment looms over Crypto Market
During the weekend, the international cryptocurrency market was unsuccessful in breaking out of its prolonged period of decline and remained in a negative position.
In the previous 24 hours (at the time of writing), the price of Bitcoin decreased by 1% and fluctuated within the range of $22,500 to $22,600. At the same time, Ethereum's value also dropped by 1% and went below $1,600.
Additionally, the growing apprehensions related to regulations have contributed to the unfavorable outlook in the cryptocurrency market.
Regulatory agencies have intensified their inspection of cryptocurrencies, particularly concerning enforcing anti-money laundering (AML) and know-your-customer (KYC) regulations.
Consequently, this has led to the introduction of new legislation and protocols in numerous nations, which may affect the prices of coins by influencing the confidence of investors and the fluidity of the market.
Moreover, when regulators take action, it can cause investors to feel unsure and anxious, which can result in a decrease in demand and a decline in prices.
Upcoming Launch of PancakeSwap V3
In April, PancakeSwap, a popular decentralized exchange that operates on multiple blockchains, announced its schedule for the release of its third iteration (V3). The crypto trading platform has revealed that an updated version of its app will be made available to customers in the upcoming month on the Binance Smart Chain.
According to Mochi, the anonymous head of PancakeSwap, the upcoming enhancements will improve the user experience and make DeFi more accessible to a broader audience. The upcoming release of "PancakeSwap V3" is anticipated to bring in new capabilities, including better liquidity provision, lower trading costs, trading incentives, and improvements to yield farming tools, as stated by the PancakeSwap head.
Expectations are high for the forthcoming launch of PancakeSwap V3, which is projected to offer several fresh features and enhancements to the platform, including a revamped user interface, enhanced liquidity pools, and sophisticated price discovery methods.
PancakeSwap has outlined a rewards initiative that aligns with the release of its upgraded exchange. Under this campaign, users who contribute a particular sum of funds to the platform's liquidity pools will receive an airdrop of the exchange's CAKE token.
Despite the existence of many decentralized exchanges, its widespread popularity has made it a prominent player in the industry, and the upcoming release could potentially have a favorable influence on the future value of the PancakeSwap token.
US Dollar’s Weakening Strength Provides Boost to Cryptocurrency Market
It is commonly believed that when the value of the US dollar rises, assets such as cryptocurrencies become less expensive. However, is this notion accurate?
In actuality, a depreciation of the US dollar could potentially lend support to the cryptocurrency market. Although there have been conflicting indications, the US dollar has been trading within a narrow range near 104 because investors anticipate Federal Reserve Chair Jerome Powell's testimony and the February employment statistics, which could affect the central bank's strategy.
The dollar index, which measures the US dollar against six primary currencies, declined by 0.057% to around 104, but it is still near the seven-week high of about 105 it reached last week. However, it is essential to exercise prudence and avoid overinterpreting this development since cryptocurrency is still in its early stages compared to other types of assets. It has unique characteristics, and prices can fluctuate for reasons beyond factors like the strength of the US dollar.
Currently, the price of PancakeSwap is around $3.75, and there has been a trading volume of approximately $26 million within the past 24 hours.
Over the last 24 hours (at the time of writing), PancakeSwap has encountered a decline of around 1.50%, causing it to be ranked #72 globally. Its present market worth is $6 billion. With around 1.8 billion CAKE coins in circulation, the maximum supply of coins is estimated at approximately 7.5 billion.
From a technical viewpoint, the CAKE/USDT pair is presently hovering just above the 61% Fibonacci retracement level at $3.75.
If the pair manages to close above this level, it could initiate a potential bullish trend, with a projected price target of $3.92.
The RSI and MACD indicators point towards a weak selling trend, indicating that the CAKE/USDT pair may experience a potential bullish reversal if its price remains above $3.75.
Now, with the new launch of v3, the upgrade is expected to feature exciting and improved features regarding competitive trading fees, liquidity provisioning, and more. Such improvements are expected to capture more capital and increase protocol revenue while also bolstering the value of PancakeSwap's proposition among investors.