The recent run-up in Polygon (MATIC) has been a bit of a head-scratcher. That is, until you consider the catalyst: PancakeSwap (CAKE). The two are otherwise indistinguishable, with similar fundamentals, but PennySwap (CANN) recently surged ahead of Polygon (MATIC) in terms of price per unit of volume. What’s the story?

Cryptocurrency market cap is $133,983,545,666. Ethereum’s market cap is $7,718,665,934. Bitcoin’s market cap is $133,000,000,000. As you can see, the three top cryptocurrencies are dominated by Bitcoin, Ethereum and Bitcoin Cash. Since the top cryptocurrencies are dominated by Bitcoin, Ethereum, and Bitcoin Cash, we can expect the other cryptocurrencies to move similarly to those top cryptocurrencies. For example, we can expect the top cryptocurrencies to follow the trend of the top cryptocurrencies. This trend is called the “pancake swap” or the “pancake effect”.

Data from market data analysis tool Messari shows that Uniswap is winning the decentralized exchange (DEX) battle against PancakeSwap.

Earlier this year, PancakeSwap briefly topped DEX in terms of trading volume. But thanks to Polygon and its lower gas cost structure compared to Tier 1 Ethereum, Uniswap has done well.

PancakeSwap is unable to sustain growth

DEX will continue to gain popularity this year and reach $405 billion by the second quarter of 2021. A year ago, in the second quarter of 2020, DEX was only $3.4 billion, which is a staggering growth of 11,751% for the year.

Most of the volume in the second quarter of this year was recorded in May, at the peak of the local market recovery. Given that the prices of and interest in cryptocurrencies have fallen significantly since then, it would be surprising if this trend continued in the third quarter.

However, the monthly breakdown of DEX volume shows a significant drop in volume for PancakeSwap in June. Uniswap ends the second quarter of 2021 in first place with the largest market share.

While DEX Breakfast briefly surpassed Uniswap in volume in April, its market share has since declined due to the rise of Uniswap V3 and the demise of Binance’s smart-chain ecosystem following its crash in May, Messari analysts write.

Source : messari.io

Data shows Polygon (MATIC) has reversed PancakeSwap’s (CAKE) rise

PancakeSwap was launched on the Binance Smart Chain (BSC) exchange in September 2020. It’s been called the solution for those who want to do DeFi without paying exorbitant gas prices.

This unique advantage allowed it to grow rapidly, despite criticism that the proof-of-authority BSC network was too centralized or that the PancakeSwap source code had been stolen from Uniswap.

But Polygon’s growth has led to a decline in BSC’s share of DEX volume.

Polygon– Key

At one point, Polygon was a secondary player in the Ethereum ecosystem. However, the developers of the Ethereum core turned their attention to solving the problem and made way for BSC.

After rebranding with Matic and renewing its vision of its place in the Ethereum ecosystem, Polygon has quickly established itself as a major player offering tier 2 scaling through a multi-chain approach.

Polygon is a protocol and framework for building and connecting Ethereum-enabled blockchain networks. Aggregation of scalable solutions on Ethereum with support for the Ethereum multi-chain ecosystem.

Polygon technology has transformed Ethereum into a multi-chain system they call the Internet Blockchain. This system is similar to the operation of competing networks such as Polkadot, Cosmos and Avalanche. But with the added benefit of Ethereum’s network effect.

Polygon co-founder Jainti Kanani said what sets it apart from other second-tier systems is the ability for developers to choose the scaling solution that best suits their needs.

What sets Polygon apart from other L2 solutions is our Layer 2 aggregation approach, which allows developers to choose the scaling solution that best fits their needs, whether it’s ZK, OPR, the Data Availability Chain, or other scaling approaches like our PoS Repair Chain.

More than 450 projects have partnered with Polygon since the rebrand, and the number of transactions per day now exceeds the number of transactions on Ethereum.

Gaining an advantage in the crypto asset market

As a paying member of Edge, you have access to a deeper understanding of cryptocurrencies and context in each article.

Chain Analysis

Price snapshots

More context

Join now for $19/month View all benefits

Do you like what you see? Sign up for updates.

why is pancakeswap going uptoken metrics youtubesleeping giants cryptonew crypto on pancake swapbest token to buy in pancakeswappancakeswap undervalued,People also search for,Privacy settings,How Search works,why is pancakeswap going up,token metrics youtube,sleeping giants crypto,new crypto on pancake swap,best token to buy in pancakeswap,pancakeswap undervalued,sleeping giant cryptocurrency,sleeping giant crypto 2021