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Crypto

How Pancakeswap Made it Easier To Dive into the Crypto Space

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  • A beginners guide to the historical price and working of pancakeswap.
  • What is Mobox? a blockchain based game launched by Pancakeswap?
  • CAKE chart is in the long down trend with 2 major resistance, can it recover?

Pancakeswap launched in September 2020, and is a Decentralized exchange (DEX) that uses the BNB chain (Binance smart chain) unlike etherium (ETH). This makes it easy for users to swap the standard tokens of BEP-20 which is a token standard that is used to create tokens on BNB, and It is similar to using ERC-20 for ETH.

In recent times, due to higher liquidity, DEX platforms like Pancakeswap have become more popular. It uses an automated market model(AMM) model to fulfill orders. Instead of relying on a centralized platform, smart contracts are used by DEXs like Pancakeswap to let users interact with each other directly. This helps in increasing security and reliability as the assets are kept in non-custodial wallets.

The Working of Pancakeswap

One of the best features of Pancakeswap is that it uses different layers. Pancakeswap has got you covered whether you’re interested in DeFi, Gaming or NFTs.

  • The decentralized exchange: Since Pancakeswap is a decentralized exchange, it does not rely on a single identity because of which the higher authorities cannot easily shut it down. Furthermore, a user’s funds are not stored on pancakeswap, and this is different from using a CEX like coinbase. Pancakeswap also takes advantage of Liquidity pools to offer fair trading for its users.
  • The NFT marketplace: Powered by the BNB chain, the NFT marketplace of Pancakeswap that was launched in September 2021 helps its users to make trades on the platform with the advantage of low transaction fees that is offered for specific NFTs on Pancakeswap.
  • The blockchain-based game: Pancakeswap did not just stop with NFTs and DeFi as it also launched its own blockchain-based Tower Defence game that is known as Mobox which is integrated by its own token known as CAKE. It also has its own NFTs called Bunnies and squads. 

Pancakeswap Price History and Recent Technicals 

How Pancakeswap Made it Easier To Dive into the Crypto Space
Chart provided by tradingview

With the fall of the crypto market, the price crashed to the point where it began, at around $9.5. After a month of fighting, the bulls pushed the price up to the levels of $26 in the month of august. However, CAKE did not see blue skies for long as the price has been continuously falling for a while now. 

The current situation is looking bad for the bulls as the price is below both the 50 and 20-day EM. The RSI also seems to indicate selling. 

A confirmed resistance of the coin is standing at $1.6 with a bigger one at $3.4. With the current downtrend of the coin, the future does not look bright. 

Conclusion

Pancakeswap launched in September 2020 and it is a DEX platform that offers NFT marketplaces and also a Tower defense game named Mobox that is created on the blockchain. With the fall of the crypto space in 2021, the price of the CAKE token did not recover and is has been in a constant downtrend for a while now. 

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