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Bitcoin rallies to $58,000 while PancakeSwap (CAKE) crosses $6 billion TVL Bitcoin rallies to $58,000 while PancakeSwap (CAKE) crosses $6 billion TVL

Bitcoin rallies to $58,000 while PancakeSwap (CAKE) crosses $6 billion TVL

with insights from Glassnode

Bitcoin saw a choppy weekend but surged 5% on Monday. Meanwhile, a leading Binance Smart Chain DEX carved a new high (metric) for itself.

Bitcoin rallies to $58,000 while PancakeSwap (CAKE) crosses $6 billion TVL

Photo by Mae Mu on Unsplash

Bitcoin surged on Monday following a choppy weekend that saw the asset plunge to as low as $50,290. It trades over $58,000 at press time amidst a broader price rise in the crypto market on the back of an announcement by Visa.

As the below image shows, the asset trades above its 34-period exponential moving averageโ€”a tool used by traders to determine the market trendโ€”meaning Bitcoin is currently in an โ€˜uptrend.โ€™ The $58,200 mark, however, is an area of resistance, with Bitcoin seeing sell-offs in the past weeks that it reached this price level.

Image: TradingView.

HODLers are continuing to hold their Bitcoin, however, a metric from on-chain analytics provider Glassnode shows. The โ€˜Supply Last Activeโ€™ indicatorโ€”a tool the amount of circulating supply last moved between 3 months and 6 months agoโ€”reached a 15-month high of over a million BTC.

โ€œBitcoin amount of Supply Last Active 3m-6m (1d MA) just reached a 15-month high of 1,906,389.374 BTC Previous 15-month high of 1,904,736.909 BTC was observed on 31 July 2020,โ€ the firm tweeted, citing the indicator.

On the fundamental side, Bitcoin was buoyed by last weekโ€™s announcement involving Tesla. The electric carmaker, the worldโ€™s largest by market cap, said it would accept Bitcoin payments for its vehicle and would not convert the asset into fiat. This was the first-ever such move by a major company.

The rise of PancakeSwap

Meanwhile, PancakeSwap recorded some of the highest gains over the past week among large-cap altcoins. It surged over 70%โ€”from under $10 to over $17โ€”on higher demand for its CAKE token, which was itself caused by the large number of users turning to the Binance Smart Chain-based decentralized exchange (DEX) for its low-fee and fast trading experience.

The CAKE token supply is now worth over $2.5 billion with over 145 million tokens in circulation. It can be used on PancakeSwap as a liquidity provider (LP) token with use-cases ranging from NFT minting to โ€˜IFOs,โ€™ trading, and even a lottery game.

PancakeSwap also crossed the $6 billion total value locked (TVL) figure last week. It is now above popular Ethereum DeFi protocols like Aave, SushiSwap, and even Compound, but it loses out by a relatively slight margin to Makerโ€™s $6.6 billion TVL (the Ethereum-based protocol has the highest TVL in the crypto space).

Meanwhile, tith the increase in TVL came the increase in the number of LPs on PancakeSwap. โ€œPancakeSwap currently has 16,891 unique LPs. Last week there was 11k and before that, just over 6k,โ€ the team said in a tweet.

It is a victory of sorts for the Binance Smart Chain-based DEX, one that pundits wrote off after its launch in mid-2020. PancakeSwap has since grown from strength to strength, suggesting that at the end of the day, it is fees (and not just decentralization) that count.