PancakeSwap just got a very significant investment. What does that mean for non-Ethereum DeFi?
Covered
- Binance Labs Invests In PancakeSwap
- PancakeSwap And The Rest Of DeFi
Binance Labs Invests In PancakeSwap
The venture capital arm of crypto exchange Binance, Binance Labs announced today that it’s made an investment in PancakeSwap through the purchase of its governance and utility token CAKE. The BNB-based chain is currently the biggest DeFi protocol on BNB with 400k daily active users.
“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 on BNB Chain, we have and will continue to provide strong support for the project,” Bill Qian head of Binance Labs. PancakeSwap is a natural investment considering the DeFi protocol is built on the BNB chain, Binance’s DeFi platform.
The investment in CAKE sent the token soaring as high as 10%. The DeFi token is currently trading in the $4.70 USD range.
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PancakeSwap And The Rest Of DeFi
As for the BNB DeFi ecosystem, it’s currently 2nd in terms of TVL. It has been second for most of its run since launch, however, it was briefly overtaken by the Terra ecosystem. But for obvious reasons, the BNB chain has taken back second place.
Now that Terra is out of the way, Binance is looking to further reinvest in Web 3 through PancakeSwap. “The investment is part of Binance Labs’ mission to facilitate the next wave of global blockchain adoption by providing technology development, marketing and community support, and enterprise solutions for Web3 transformation.”
The BNB chain is currently home to many metaverse, NFT, and blockchain projects like BakerySwap, Alien Worlds, and Mobox.
Even though technically the BNB chain is second in DeFi TVl, it’s very much a distant second. Ethereum TVL is currently $71.5 billion, while BNB stands at $8.5. It will take a lot more investment from Binance Labs to compete with Ethereum. Then again, Binance is the biggest exchange in the world.
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