The Decentralized Finance (DeFi madness has reached a new high. PancakeSwap (CAKE), the Binance Smart Chain (BSC) Uniswap, saw a higher transaction volume on Sunday than the entire Ethereum (ETH) network combined. The CEO of Binance did not miss this special milestone either!
PancakeSwap and Uniswap are decentralized exchanges (DEX). This means that there is no central party that processes transactions. The exchanges and applications dealing with decentralized applications fall under the DeFi umbrella. You can read more about this on this page.
PancakeSwap is a DEX based on the Binance Smart Chain, a rival to Ethereum. Ethereum has to deal with high transaction costs, which is why Uniswap suffers. Binance wants to offer an alternative with lower transaction costs with BSC. That strategy seems to be working. The volume on PancakeSwap has increased particularly rapidly in the past period.
On Sunday evening, the platform processed 1,733,484 transactions in 24 hours. In addition, the trading volume in the same period was $ 1.7 billion. The entire Ethereum network, not a single exchange or other application, processed 1.4 million transactions. With this, PankcakeSwap single-handedly overshadows the entire Ethereum network.
Changpeng Zhao, Binance’s CEO, proudly shared the news on Twitter.
Since Sunday, the platform’s cryptocurrency, CAKE, has surged a whopping 50% in value. Since the beginning of April CAKE is even 115% in the plus.
It is not surprising that many traders who buy new DeFi tokens via PancakeSwap. Making a transaction via Uniswap is still relatively expensive. That’s because Ethereum’s network is so busy that transaction costs keep getting higher. The Ethereum developers hope to solve this with the major Ethereum 2.0 update. The developers recently completed a first important test.
However, the Binance Smart Chain is not the holy grail. The network often receives criticism about the degree of centralization. For example, only 11 validators would determine who is processing transactions. That’s thousands of miners on Ethereum. Another potential rival to Ethereum is Cardano (ADA. That network is also taking major steps.