We have seen many smart contract platforms enter our lives in the crypto world in 2023. BASE was one of them. Just as token printing lost its appeal in previous years, now everyone launching their own network could lead to a similar process. This situation also has the potential to negatively affect the prices of layer1,2 solutions that have reached significant prices in 2021 and the altcoin prices.
PancekeSwap (CAKE)
PancakeSwap, the second largest decentralized exchange, has launched on the Ethereum layer 2 scaling solution Base, incubated by Coinbase. In the announcement made by the team today, it was mentioned that Base built on OP Stack in collaboration with Optimism is a good alternative with lower transaction fees.
At the same time, BASE stands out with fast confirmations and advanced capital efficiency. This makes it attractive for DeFi platforms. BASE had previously announced that it would not airdrop in any way today or in the future. Coinbase took this step to diversify its income with the profits it earns from transaction fees.
Base mainnet was officially launched on August 9th and is already challenging the Optimistic rollup scaling solutions Arbitrum and Optimism. Data from August 23rd shows that the seven-day moving average daily transaction count of Base was 813,000. This allowed it to surpass Arbitrum and Optimism. However, we see that it fell behind Arbitrum in the August 30th data.
CAKE Coin
PancakeSwap will first bring its swap and liquidity provision features to Base. Then, it is expected to bring the farming feature that allows users to stake their liquidity provider tokens and earn PancakeSwap’s native CAKE token while holding a position in LP tokens to Base.
Base became the eighth blockchain where PancakeSwap, initially built on BNB Chain, expanded its focus on Ethereum scaling solutions. It now supports Ethereum, Aptos, Polygon zkEVM, zkSync Era, Arbitrum One, and Consensys-supported Linea.
The price of CAKE Coin does not yet show signs of recovery on the daily chart. We need closures above $1.4 for a reversal. If the bulls can achieve this, we may see a strong rally up to $3.6 again.
