• PancakeSwap [CAKE] announced the launch of its much-awaited PancakeSwap V3, bringing several new changes to the table.
• The update offers lower fees—up to 25 times lower compared to the previous version—as well as capital efficiency.
• CAKE’s price was under the bears‘ influence before the launch, but has since seen better price action and increased whale transaction counts.
Overview of PancakeSwap V3
PancakeSwap [CAKE] recently announced the launch of its much-awaited PancakeSwap V3, bringing several new changes to the table. The DEX’s official tweet on 3 April confirmed that V3 was live on both BNB Chain and Ethereum [ETH].
Changes with V3
V3 brings a number of features and changes which include considerably lower fees—up to 25 times lower compared to the previous version—as well as capital efficiency by selecting a specific price range when providing liquidity. It was also interesting to note that PancakeSwap V3 was built on top of Uniswap V3 with added refinements.
Impact on CAKE Price
Though the update looks promising, PancakeSwap’s network value does not seem to have been affected positively yet. This was evident from a look at DeFiLlama’s data, which pointed out CAKE’s stagnant TVL. However, things seemed to have started to change as CAKE’s declining momentum slowed down and it saw relatively better price action. According to CoinMarketCap, CAKE was trading nearly 0.4% lower than yesterday at $3.68 with a market capitalization of over $673 million. Whales‘ interest in CAKE also increased as whale transaction counts spiked lately and its volume increased considerably too.
Indicators Look Bullish
Metrics and indicators looked bullish despite CAKE’s TVL remaining stagnant after the launch of V3; this could indicate an increase in users soon enough due to its low fee structure which would result in an increase in revenue for PancakeSwap’s network value over time.
Conclusion
The much awaited launch of PancakeSwap’s [CAKE]V3 brought with it numerous changes such as low fees, increased fee earnings for liquidity providers and new tools for seamless user experience among others; these are expected bring more users into using their platform resulting in an increase in their network value over time provided all other metrics remain strong or improve further going forward