Why PancakeSwap Surged Ahead on Thursday
What happened
On Thursday, PancakeSwap (CRYPTO: CAKE) provided a financially nourishing meal for its investors. As of late afternoon, the cryptocurrency was up by nearly 17% over the previous 24 hours. The reason was a new business partnership with a high-profile crypto exchange.
So what
PancakeSwap's new partner is Binance, which it just so happens is by far the largest cryptocurrency exchange on the planet in terms of volume. Under the terms of their arrangement, PancakeSwap's decentralized finance (DeFi) platform will be accessible via Binance's popular mobile app.
Image source: Getty Images.
The partnership is the result of several months of PancakeSwap developers working with their counterparts at the exchange through Binance's Mini Program. This is an initiative described by Binance as "a development framework... [that] allows developers to quickly build mini program apps that run on the Binance app."
In the token's official blog published on Medium.com, its developers said that they are "gradually" adding PancakeSwap features through the Mini Program. No specifics were provided, nor was any time frame.
Now what
In the crypto world, scale is important, so it's entirely understandable why PancakeSwap's token traded up sharply following the Binance news. At a stroke, being part of the Binance ecosystem will almost certainly extend PancakeSwap's reach and appeal significantly.
This was clearly PancakeSwap's goal in hooking up with Binance in the first place. In the blog entry, the developers wrote that "we believe that this will be an important step for PancakeSwap to further increase our user base, liquidity, trading volume, and impact within the BNB Smart Chain (BSC)."
The BSC is the base blockchain of Binance.
10 stocks we like better than PancakeSwap
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and PancakeSwap wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 3, 2022
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
