Despite being one of the major decentralized exchanges, customers of PancakeSwap are fast losing confidence in the platform.
While there hasn’t been so much activity in the overall cryptocurrency market in the past few days, the same cannot be said of PancakeSwap whose CAKE token continues to lose value.
PancakeSwap (CAKE) price action in the last 7 days. Photo: CoinMarketCap
As seen in the chart above, the token has shed over 34% of its value in just seven days. And, as of publication, it was seen trading at $2.71. However, much of the losses come as a result of commentaries recently made by Cake DeFi’s CEO Julian Hosp. According to Hosp, yields may gradually be shaping up to become permanently lower. The statement reads partly:
“We see yields adjusting at healthy, realistic, albeit much lower levels. We believe that this is actually a good sign, as it indicates that the industry is moving toward what we call “true DeFi.”
PancakeSwap (CAKE) Price Action Signals Worsening Investors’ Sentiment
Despite being one of the major decentralized exchanges, customers of PancakeSwap are fast losing confidence in the platform. But it appears to be a general case among all DeFi platforms as investors have now lost confidence in both centralized and decentralized players in the crypto exchange space.
Meanwhile, investors themselves did not just grow cold feet. One major factor that has contributed to the worsening sentiment is the recent bank failures. Recall that most of the failures stemmed from key crypto-based banks such as Silicon Valley Bank (SVB).
Furthermore, Hosp’s commentary about the expectation for yields is discouraging, especially for investors looking to farm yields. And it should be noted that the statement does not in any way encourage holding tokens on the PancakeSwap network. Rather, it suggests to investors that they may need to take their funds elsewhere since lower yields would become the new norm for decentralized exchanges.
In any case, the decentralized-exchange market is a highly competitive one. And, as such, investors would have no problems taking their businesses elsewhere.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
He’s a reader, a researcher, an astute speaker, and also a budding entrepreneur.
Away from crypto however, Mayowa’s fancied distractions include soccer or discussing world politics.
