On March 18, CAKE generated a significant surge, increasing by 23% to reach an intraday peak of $2.63, bringing its weekly gains close to 70%.
The trading volume for this altcoin surged threefold, reaching roughly $1.12 billion, as its market capitalization approached $760 million.
This rally was accompanied by heightened interest from derivative traders. According to CoinGlass data, open interest rose by 73% in just one day, hitting $96 million, which is more than a threefold increase from the $30 million recorded at the start of 2025.
Today’s remarkable gains for Pancakeswap’s CAKE came amidst growing excitement from investors, as Pancakeswap was recognized as the most active decentralized exchange by daily trading volume for two consecutive days.
Data indicates that PancakeSwap achieved nearly $1.64 billion in trading volume over 24 hours on March 18, outpacing its competitors Uniswap and Raydium, which registered $1.021 billion and $334.98 million, respectively.
PancakeSwap now commands over 30% of the decentralized exchange market share for this timeframe.
Several key factors are contributing to PancakeSwap’s impressive performance. A significant influence is Binance’s announcement to delist Tether (USDT) along with eight other stablecoins for users in the European Economic Area (EEA), effective March 31, to comply with the EU’s MiCA regulations.
This decision led many users to transfer their USDT to PancakeSwap, resulting in a spike in trading volume. In just one day, the DEX processed over $352.4 million in USDT transactions, representing around 31% of its total volume.
Additionally, Binance’s founder, Changpeng Zhao, sparked renewed interest in memecoins after a tweet inspired the creation of a BNB Chain-based token known as MUBARAK. This token has seen a remarkable increase of over 270% within the past week.
According to PancakeSwap V3 statistics, following Zhao’s mention of MUBARAK, it became the third most traded asset on the platform, following USDT and Wrapped BNB (WBNB).
Moreover, another significant reason behind CAKE’s impressive performance is Binance’s recent $2 billion investment in the Abu Dhabi-based technology investment firm MGX, which has bolstered confidence in Binance-associated projects like PancakeSwap that run on the Binance-backed BNB Chain.
In addition, PancakeSwap has conducted a recent burn of over 9.3 million CAKE, valued at around $23 million. This token burning permanently removes these tokens from circulation, thereby reducing supply, which can help increase scarcity and potentially enhance the token’s value over time.
On-chain metrics demonstrate a strong bullish sentiment, as recent data shows a shift to positive social sentiment surrounding CAKE, along with a noticeable increase in daily active addresses over the past 48 hours.
Furthermore, several major holders have been observed accumulating CAKE, likely due to their confidence in its future prospects. Such accumulation patterns tend to attract retail investors, who enter the market with hopes of quick profits, further increasing demand for this altcoin.
CAKE Price Analysis
Technical indicators also point to a continued bullish trend in the upcoming days.
On the 1-day/USDT price chart, CAKE has surpassed a descending resistance trendline that has been present since February 13, characterized by lower highs and lower lows.
The 50-day exponential moving average is indicating a potential golden cross, as it is about to surpass the 200-day EMA, a development that suggests further gains are likely ahead.
Meanwhile, MACD lines are trending positively, and the Supertrend indicator has turned green, both signs signaling a robust upward trend.
As a result, CAKE is targeting the resistance level at $2.65, and a breakout above this level could lead it toward the $2.95 mark, which was its peak during February this year.
However, if the upward momentum falters, CAKE might retreat to $2.33, even though PancakeSwap continues to lead as the top DEX on the BNB Chain.
Furthermore, some analysts suggest that for the bullish trend to persist, CAKE needs to remain above the $2.40-$2.70 support range. Sustaining this level could allow CAKE to build momentum and aim for the next resistance at $2.90.
Disclaimer: This article does not constitute investment advice. The content and materials presented on this page are intended for educational purposes only.