The most prominent decentralized exchange (DEX) on the Binance Smart Chain (BSC), PancakeSwap launched PancakeSwap V2 on 23rd Apr, migrating two of their current smart contracts to new, upgraded contracts with more DeFi features.
The migration means that PancakeSwap will stop giving out $CAKE rewards to the old farms, and start giving them to the new ones. So users currently in possession of PancakeSwap LP Tokens, whether staked in farms, vaults, or simply in wallet, will need to:
Unstake your LP tokens from old farms
Remove liquidity from old type of LP
Add liquidity to the new type of LP
Restake in new farms
Before the V2, PacakeSwap was already a leader in the DeFi landscape. PancakeSwap overtook Uniswap in Unique Trader and Trade Counts in April, as soaring transaction costs on Ethereum, known as gas fees, sent traders to BSC and other competitor blockchains.
Then how does the V2 migration influence PancakeSwap’s on-chain performance?
From PacakeSwap’s 7d Dashboard, we can see that all the data is decreasing. Important metrics for Dex: 7d Dex Trading Volume dropped 28.82%; 7d Fees Earned by LPs also dropped 28.82%; 7d Fees Earned by Pancake dropped 21.00%.
After the V2 launched on 23th April, the Unique Trader Amount first increased from 220.69K on 23rd Apr to 401.09K on 26th Apr, then decreased to 40.41K on 2nd May.
The Trade Counts showed a similar trend: it first rose from 1.42M on 23rd Apr to 2.39M on 26th Apr, then dropped to 144.41K on 2nd May.
As for the Dex Trading Volume, it first grew from $544.72M on 23rd Apr to $1.70B on 29th Apr, then fell to $105.99M on 2nd May.
So did the Fees Earned by Liquidity Providers. It has the same trend as the Dex Trading Volume, which increased from $926.03K on 23rd Apr to $2.89M on 29th Apr, and decreased to $180.17K on 2nd May.
The Fees Earned by Pancake experienced more ups and downs. Yet the latest fees earned on 2nd May is $31.80K, still lower than that of 23rd Apr $163.42K.
So overall, the on-chain statistics firstly was stimulated by the migration and increased, then sharply dropped to a level that’s less than its previous average performance.
$CAKE up 32% in the past 7d, if you are holding $CAKE, do keep an eye on PancakeSwap’s data dashboard and be careful of its price correction.
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