- PancakeSwap processed $78.4B in January and $81B in February 2025, reaching $1.1T total volume, per Dune Analytics.
- Growth linked to BNB Chain adoption and meme coin listings like Four.meme’s TST, backed by Binance’s former CEO.
PancakeSwap, a decentralized exchange (DEX) spanning nine blockchain ecosystems, achieved unprecedented trading activity in the first quarter of 2025. According to Dune Analytics, the platform processed $78.4 billion in January and surpassed $81 billion in February, its highest monthly volumes since 2021. Lifetime trading volume now exceeds $1.1 trillion, reflecting sustained demand for decentralized finance (DeFi) services.
This surge aligns with heightened activity on the BNB Chain, a blockchain infrastructure developed by Binance. PancakeSwap, responsible for over 90% of decentralized trades on BNB Chain, credited the network’s expanding utility for its growth.
Public statements emphasized its role as a primary venue for BNB Chain users. ETHNews analysts also noted a correlation with memecoin issuances, particularly the Test (TST) token launched by Four.meme, a platform backed by former Binance CEO Changpeng Zhao, which drove short-term liquidity inflows.
However, user metrics lag behind historical highs. Monthly active addresses averaged 2 million in early 2025, down 63% from 2021 and 30% year-over-year. This divergence suggests increased transaction frequency among existing participants rather than new user acquisition.
DefiLlama data reveals daily trading volume on BNB Chain-based DEXs dropped from $6 billion in mid-February to $1.5 billion by March. Similarly, the aggregate market cap of meme coins fell 60% from December 2024’s $137 billion peak to $55 billion in March. Reduced speculative interest in meme assets may dampen PancakeSwap’s volumes in subsequent months.
PancakeSwap’s reliance on BNB Chain and meme coin trading creates vulnerabilities to sector-specific volatility. While maintaining dominance on its host blockchain, the platform faces uncertainty if macro market conditions or token trends shift. No public initiatives have been announced to address user retention or diversify its asset base.
As of today, PancakeSwap (CAKE) is trading at $1.548, reflecting a 1.71% increase in the last 24 hours. However, despite this slight uptick, CAKE has experienced a 26.13% decline in the past week, making it one of the more volatile assets in recent days.
Over the past month, CAKE has shown some recovery with a 10.41% gain, but its year-to-date performance remains negative at -38.26%. Over the past year, CAKE has lost 58.52% of its value, and it is currently down 83.78% from its all-time high.
The price action suggests that CAKE is struggling to hold key support levels, with $1.50 acting as a critical support zone. If it fails to hold this level, the next potential support could be around $1.30-$1.20. On the upside, if buying pressure increases, resistance is expected around $1.80-$2.00.
