The idea behind the PancakeSwap Coin
The PancakeSwap Coin is fully focused on operating a decentralized exchange. Conventional exchanges from the stock world are directly linked to the local legislators and thus enable an exchange of tax-relevant data in real time. The central characteristic of traditional stock exchanges is one of the most important because it is supposed to ensure a stable and therefore liquid market environment.
Due to the technical development of the blockchain industry, which was made possible for the first time by Bitcoin, information is exchanged decentrally. Due to the development of many different cryptocurrencies, which also follow a decentralized philosophy, the idea of a completely decentralized exchange that operates without a central authority quickly arose.
The first DEX's came onto the market in the bull market of 2017. Many have failed in practice due to technical problems. Nevertheless, there were some who set up a functioning, decentralized exchange early on in this innovative environment. Nevertheless, there was a big problem at the time: Although many different projects appeared on the market in 2017, interest in the crash dropped enormously at the beginning of 2018.
Many users had lost interest in decentralized projects during this bear market phase. As a result, even decentralized exchanges could not experience large growth in users. The effect was that mostly only a few thousand euros were traded a day. This liquidity problem ultimately got the better of the stock exchanges, which were already functioning at the time. Because these simply lacked the money for further development.
The Aphelion project is an example of this, which went on the market in December 2017. In this PancakeSwap forecast, we therefore find that due to low demand a few years ago, many providers have been able to position themselves well in recent months, as the need for independent exchanges, as part of the regulation of cryptocurrencies, has grown exponentially all over the world rose.
What can the PancakeSwap Coin do?
The difference to the development of the decentralized exchanges at that time was therefore characterized by technical problems and a shortage of liquidity. It was not until the end of 2019 and the beginning of 2020 that the Bitcoin Halving at that time was able to put the price of the largest cryptocurrency by market capitalization into a new form of economic activity. Fresh liquidity came into the market as Bitcoin surged above the old 2017 all-time high.
This tremendous capital growth could have a direct impact on altcoins. PancakeSwap started in September 2020 and was able to take full advantage of this market phase. Compared to the projects from the previous bull market, CAKE was able to experience an enormous growth in users and thereby also enable the functionality of the DEX with enough liquidity, which benefits the PancakeSwap price forecast.
Decentralized exchanges on the rise
A stock exchange that was able to develop significantly better than PancakeSwap is UniSwap. Its own cryptocurrency UNI was briefly in the top 10 largest cryptocurrencies of all time. At the time of writing, UniSwap is ranked 22nd according to Coinmarktecap . PancakeSwap is currently in 77th place with its own cryptocurrency CAKE. A problem in the development of large market participants is the centralization of the application. As a result, UniSwap also offers more dangers of being attacked compared to PancakeSwap.
It is noticeable that UniSwap is much more widespread than CAKE. Nonetheless, here is one factor that is crucial in choosing the right decentralized exchange. Because the fees on UniSwap are significantly higher than the fees on PancakeSwap. In practice, the user quickly pays one euro for a transaction on UniSwap, with the costs for PancakeSwap being in the cent range.
As with all decentralized systems, inertia increases with increasing load. Since UniSwap can have a significantly higher number of users than PancakeSwap, there is also a higher level of inertia. Since the decentralized exchange often cannot allow this inertia in practice due to high efficiency, the fees for the individual trades automatically increase.
This decentralized dilemma shows that decentralized exchanges are not just about liquidity. Because in comparison, a lower fee could be achieved on smaller decentralized exchanges. UniSwap moves on the blockchain platform Ethereum and PancakeSwap on the BinanceChain. In comparison, it is also noticeable that the Ethereum chain has a significantly higher load than that of Binance, which is a great advantage in this PancakeSwap forecast: CAKE course 2022, 2025 and 2030.
In the following we go into various expert opinions on the future development of the pancake swap forecast. Keep in mind that these are only the personal opinions of the analysts. The information is in no way to be understood as investment advice and should only serve as a possible guideline for your own decision, but should never replace it.
Priceprediciton.net
The analysts at Priceprediction.net assume a maximum achievable price of USD 5.94 for 2022. In the following year, the price could top $7 on average and head for double digits by 2024.
Tradingbeasts.com
Tradingbeasts.com experts are a little less optimistic. It only reached USD 4.5 by December. The price of CAKE should only rise to USD 5.94 by the end of 2024.
The website's analysts expect a maximum price of $4.26 to be reached this year. By 2024, this is only expected to increase to USD 5.24. The analysts seem to be significantly less optimistic than those of Tradingbeasts.
PancakeSwap (CAKE) broke the uptrend we've been forming since mid-June and is now consolidating just below that former support.
We are currently trading at around USD 4.40 and the 4H-EMA ribbons are also giving us pressure from above. Add to this the 200 SMA (last 200 moving averages/purple) and 200 EMA.
So we have a lot of resistance overhead on falling trading volume. On the downside, it would be desirable and more likely if we recapture the $4.10 area where we made our low.
The picture is not looking too good on the daily chart. Here the uptrend has recently become weaker and weaker. On the one hand, the volume has decreased, on the other hand, some divergences have formed.
It is therefore not surprising that this uptrend is now weakening and has been broken. At the moment the Daily-EMA Ribbons can still give us some support.
The next support is around USD 4.04 in the form of the monthly support P. A consolidation here would be desirable in order to get back into the uptrend if necessary.
Conclusion on the PancakeSwap Coin forecast 2022
PancakeSwap has a legitimate use case due to the decentralized philosophy of the blockchain. Compared to the historical development of the DEX's, it was able to experience a very good boost from the start in 2020. Despite the comparably small size to UniSwap, it can still compete with UNI. Because of the high fees of the larger exchange, there are definitely advantages to trading on PancakeSwap.
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