Automated Market Maker PancakeSwap (CAKE) hit an all-time high of $40.11 minutes before press time on Wednesday night.
What Happened: CAKE was trading 10.35% higher at $39.35 at press time. The cryptocurrency has spiked 50.52% on a seven-day trailing basis.
Another automated trading facilitator of decentralized finance (DeFi) tokens, UniSwap (UNI), too hit an all-time high of $43.89 on Wednesday. UNI traded 5.25% higher at $42.29 at press time.
CAKE and UNI have rallied 6,208.11% and 717.98% since the beginning of the year.
SushiSwap (SUSHI), another DeFi coin, traded 2.6% higher at $14.19 at press time.
Why It Matters: Binance Smart Chain-backed PanCakeSwap has helped bring the number of transactions Binance’s smart-contract blockchain to five times those on the Ethereum (ETH) blockchain, CoinDesk reported.
“New retail entrants are seemingly coming in straight to BSC/PancakeSwap through TrustWallet due to low fees,” according to Avi Sanyal, head of trading at BlockTower Capital, reported CoinDesk.
Polygon (MATIC) too has witnessed ten a 10x rise in the number of transactions since the beginning of the year according to Alex Svanevik, CEO of Nansen, a blockchain data firm, as per a separate report.
Both CAKE And MATIC have benefitted due to high congestion and resulting steep transaction costs on Ethereum (ETH) — referred to as “Gas.”