The many decentralized exchanges on the market offer access to some rather unusual trading markets. For PancakeSwap, a major DEX on the Binance Smart Chain, those pairs revolve around Wrapped BNB, among other pairs. An interesting concept, as it confirms the versatility of this industry.
Wrapped BNB Gains Popularity
It may seem rather strange to see a wrapped tokenized version of BNB trading on the Binance Smart Chain. In reality, this is not as unusual as some may think. Ethereum has WITH and WBTC as top trading pairs among many DEXes. PancakeSwap has WBNB, which is traded primarily against BUSD, USDT,CAKE, and EPS on the exchange. WBNB for PancakeSwap is akin to WETH for Uniswap.
However, what is somewhat surprising is how WBNB is not found on too many decentralized exchanges yet. Nearly all of its volume comes from PancakeSwap, confirming this project’s dominance in the cryptocurrency space. The only other WBNB trading pair is found on vSwap, where it trades against BUSD.
PancakeSwap Liquidity Keeps Improving
When interfacing with decentralized exchanges, ensuring there is enough liquidity is essential. For PancakeSwap, there is currently $2.44 billion in liquidity, yielding an 8.14% increase. More liquidity is always a good sign, as it will allow traders to complete transactions with lower slippage.
Unsurprisingly, the most liquidity can be found in WBNB, as it represents $907.796 million in pooled assets. BUSD and CAKE complete the top three, followed by Ethereum Token and USDT. An intriguing collection of liquidity pools, all of which can prove beneficial to the PancakeSwap project in the long run.
Trading Volume Looks Healthy
As is often the case with decentralized exchanges, daily trading volumes will go through peaks and lows. For PancakeSwap, the peak of nearly $2 billion seems well behind us at the time. However, the platform still provides over $800m in daily volume, which is more than acceptable. It performs better than the majority of smaller DEXes on the Ethereum blockchain.
To no one’s surprise, the volume is equally dominated by WBNB, BUSD, CAKE, USDT, and BSCPAD. It is a fascinating mix of tokens, and it is surprising to see Ethereum drop to 6th place in this ranking. PancakeSwap keeps carving out its legacy in the world of decentralized exchanges, which is all one can ask for under the current circumstances. If the platform can sustain over $1 billion in daily trades, future growth seems inevitable.
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