Decentralized finance cryptocurrency exchange PancakeSwap (CCC:CAKE-USD) is up in trading today following a lottery giveaway totaling approximately $2.75 million. CAKE-USD is up more than 25%.
PancakeSwap operates as an automated market maker (AMM), where users trade against a liquidity pool (LP) to exchange one cryptocurrency for another. The funds in those liquidity pools are loaned to PancakeSwap by other users, who then receive LP tokens. Those LP tokens are redeemable for the original capital invested, plus the bulk of transaction fees that capital accrued in the liquidity pool.
LP tokens can also be staked to farm CAKE, the platform’s governance token. CAKE can then be staked to farm other tokens, including more CAKE, or used to purchase tickets for the platform’s twice daily lottery. PancakeSwap operates on the Binance Smart Chain and initially gained popularity due to the high GAS fees associated with the Ethereum (CCC:ETH-USD) blockchain.
Today’s lottery pot of 131,507.51 CAKE was the largest pot by U.S. dollar value in the platform’s history, growing from approximately $820,000 at 1 a.m. Eastern to a whopping $2.75 million by the lottery’s close at 10 A.M. EST. It’s probably safe to say the surge in CAKE is due at least in part to the high volume of lottery entries.
PancakeSwap (CAKE) Price Predictions
Currently trading at $21.26, where does PancakeSwap go from here? Let’s take a look at some PancakeSwap (CAKE) price predictions:
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Article printed from InvestorPlace Media, https://investorplace.com/2021/04/pancakeswap-cake-price-predictions-where-will-cake-go-in-2021/.
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