Ever since PancakeSwap entered the market, it has been welcomed by BSC token holders as an absolute necessity in the world of DeFi! The Pancake DEX/AMM has acted as a form of prototype that has seen many other projects try to copy and emulate, as they try to recreate Pancake's stellar performance. This has only further served to confirm that PancakeSwap is indeed the King of the BSC DeFi world! A quick visit to Defistation will only compound this viewpoint, as PancakeSwap is the number one project on BSC. Number one according to market cap, TVL and holders.
PancakeSwap is firmly seated at the top position with not much else to rival the dominance of this extremely successful DEX/AMM.
Even though there is fresh interest in Polygon and Solana DeFi opportunities, BSC will continue to dominate a very large portion of the DeFi space. With that in mind, it is important to consider the growth of existing, as well as new projects on the BSC chain. I have been involved with DeFi on the Solana chain for some months now and it is clear to me that there is still a lot of growth needed in this space. Although many are raving about Polygon, I have not personally found anything that really excites me, so I am just watching for now.
However, when it comes to BSC, there are a number of working projects that continue to produce great yields despite the current market conditions.
CAKE is one of those opportunities, making it a no-brainer to have at least some exposure to CAKE via a number of pooling vaults on numerous platforms and yield optimizers. Many simply choose to stake their CAKE on PancakeSwap itself, which is also great, especially since the addition of the AUTO vault. Users can choose to earn a number of different tokens with varying yields via the PancakeSwap Syrup Pools, including CAKE itself! I think many can agree with me that CAKE has been a great performer in the DeFi space, offering a fair level of stability, as well as consistent gains.
For me, this is what it is all about! I want to know that I am going to be making a consistent and fairly stable income on a monthly basis. I don't chase massive gains when it comes to opportunities that I am utilizing for income. I want to invest in something that will continue to pay handsome dividends in the long-term.
PancakeSwap - Seeking Out Higher Ground
When I consider the recent all time high price of CAKE, it seems logical to me that it is just a matter of time before CAKE creates a new floor at $100. Sure, this may indeed take a while but I am convinced that it will occur and that CAKE will continue to be an amazing long-term earner. This scenario becomes even more likely once you realize that PancakeSwap is actually the true gold standard for all things BSC, suggesting that further adoption is almost guaranteed.
In short, PancakeSwap contains all the ingredients to an almost perfect investment vehicle. Looking at the TVL of PancakeSwap relative to the market cap, it becomes clear that even at these current prices, CAKE is actually undervalued.
I have mentioned before that a drop to $10 or below is a screaming buy for CAKE. I have bought every dip down to these levels and will do so again if prices afford me the opportunity. CAKE is the one asset that I am not too concerned about dropping further in value. This is due to the compounding of liquidity rewards that can be leveraged to restore value and bring a holding back into the green.
There are positive outcomes for both the bullish and the bearish case, which makes CAKE even more attractive as a long-term investment. Firstly, the bullish case speaks for itself, in that the price will increase. This will cause your holdings to increase in value, as well as your monthly rewards, making it a very viable medium to long-term investment. In the event that Crypto prices dump further, there will be a flight to quality. BTC gains dominance in bear markets, as too will CAKE. Those choosing to remain in DeFi due to their need to earn yield will most likely move from the higher risk opportunities into the quality opportunities. As previously mentioned, CAKE is the gold standard and will fair much better than your average DeFi protocol in a bear market.
Users will feel more comfortable utilizing a top project than being exposed to a riskier project, even if the yields are lower. One thing about a bear market, it causes quality to shine.
Please do not consider this investment advice, as I am merely sharing my own views regarding the Crypto market. This information should only serve to encourage your own research. All the best!