On February 19th, PancakeSwap the largest AMM (Automated Market Maker) on Binance Smart Chain (BSC), has overtaken Uniswap a well-established AMM on Ethereum chain in transactions volume in the last 24hrs. As transaction volume for Uniswap reached $1,297 billion, its BSC counterpart managed just shy of $1.299 billion.
Due to Ethereum’s skyrocketing value, transaction prices on the Ethereum chain also went up, so it has become extremely expensive to invest in coins on Ethereum based marketplaces like Uniswap. Encouraged by recent high-profile investments that had spurred a lot of interest in cryptocurrencies, many small-time retail investors decided to dip their toes into it for the first time. But it was evident such endeavor was cost-prohibitive, as even a single interaction with smart-contracts on Ethereum powered platforms could cost tens or hundreds of dollars.
A simple solution for many investors was to find cheaper options, and for many of them, PancakeSwap was the answer, as it runs on Binance Smart Chain (BSC) where that same transaction cost mere cents. This sudden interest caused PancakeSwap’s native token (CAKE) to jump 10x from $1.94 on February 1st, to $19,57 on February 19th.