The price of PancakeSwap’s native cryptocurrency – CAKE – skyrocketed by as much as 9 percent today as Binance Labs revealed a strategic investment into the decentralized exchange.
PancakeSwap is the veteran and leading decentralized exchange (DEX) on the BNB Chain, and it has been the predominant one in terms of overall trading volume since its launch.
Today, the investment arm of the world’s largest cryptocurrency exchange, Binance Labs, revealed that it has made a strategic investment into the utility and governance token of PancakeSwap – CAKE.
PancakeSwap has been leading the development and mass adoption of BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL (read: total value locked) on BNB Chain, we have and will continue to provide strong support for the project.
The announcement doesn’t reveal the sum of the investment, but it had an immediate impact on CAKE’s price.
Source: Binance, powered by TradingView
At the time of this writing, the cryptocurrency is trading at around $4.68, which is an increase of roughly 6%, but it had peaked at slightly below $5 a few hours ago.
This also comes on the back of a broader market rally where Bitcoin’s price is approaching $31,500, ending the streak of nine consecutive red weekly candle closes.