PancakeSwap has made waves in the cryptocurrency world with its exceptional performance in 2024, marking a watershed year with a staggering total trading volume. This remarkable increase is closely tied to the rising allure of decentralized exchanges (DEXs) and the rapid development of layer-2 (L2) blockchain technologies.
Record Trading Volume
In terms of figures, PancakeSwap recorded an astonishing $310 billion in trading volume, a robust leap of roughly 179% from the $111 billion tallied in 2023. But what’s behind such phenomenal growth? Much of it can be linked to the significant advancements in L2 networks like Arbitrum and Base. In 2024, trading on Arbitrum surged to $13.2 billion—an impressive increase of 3,656%—while Base also saw its volume soar by 3,539% to hit $11.6 billion, according to a report shared by PancakeSwap with Cointelegraph.
User Experience Improvements
The PancakeSwap team attributes this bullish trading volume to a positive shift in investor sentiment, coupled with increased interaction in the decentralized finance (DeFi) and DEX sectors. Presently, PancakeSwap holds the title of the second-largest DEX, maintaining a daily trading volume of $2.23 billion. It trails just behind Uniswap, which boasts a higher 24-hour volume of $3.11 billion, as reported by DefiLlama.
Furthermore, the platform didn’t limit its growth only to Arbitrum and Base; it also saw impressive activity across other networks. Notably, trading volumes increased by 251% on Ethereum and by 155% on the BNB Chain. This growth coincides with an expansive trend in the DeFi arena, where the total value locked (TVL) in various DeFi protocols rose by over 124% during the year—from $54 billion at the beginning of January to more than $121 billion by December 24, based on findings from DefiLlama.
Innovative Features and Tools
Critical to PancakeSwap’s achievement was its dedication to improving user experience. The team highlighted how enhancements in key features—like the upgraded swap interface, PancakeSwapX, and useful tools such as the Telegram Swap bot—have played a fundamental role in attracting more participants to the platform. Launched on October 15, PancakeSwapX introduced zero-fee trading and gasless asset swaps on both the Ethereum and Arbitrum networks, making transactions easier for users. In the past, newcomers had to set up an Ethereum wallet and purchase Ether (ETH) to cover transaction fees before they could start engaging in blockchain activities.
According to DefiLlama, PancakeSwap ranks as the third-largest DEX in terms of monthly trading volume, with over $49 billion in cryptocurrency transactions recorded in just the past month. This growth story illustrates not only PancakeSwap’s success but also the overall dynamism and potential of the DeFi landscape.
Source: Cointelegraph
