A Look Into PancakeSwap and Uniswap: BSC and Ethereum Shining Stars

The decentralized exchanges (DEXes) have seen incredible success, playing a large role in the current bull run.

Wilfred Victor
May 13, 2021
Blockchain News

Two Big Players

The bull market has been trending for nearly one year, starting late last year. Uniswap and PancakeSwap continue at their record-breaking pace as the total market continues reaching a new height with innovations and new ideas. Let’s dive into why these exchanges have seen so much success recently, starting with their host chains.

Ethereum Chain vs. Binance Smart Chain

Typical of the bull market, the market has witnessed a new all-time high across major cryptocurrencies. The total market cap will cross a whopping $2 Trillion in just this year. Alongside the growth of the market is a key factor responsible - the introduction of many new users bringing fresh capital.

Check out the following important metrics on BSC and Ethereum. These leading chains  have played a pivotal role in crypto ecosystems blooming during this market run.

Ethereum Unique Address Chart

Reaching a peak of 152 Million distinct addresses yesterday on May 12 and a record 228,094 daily increase, Ethereum has seen tremendous success recently. The uptrend slope graph signifies a growing number of new wallet address popping up on the Ethereum chain.

BSC Unique Addresses Chart

The BSC also reached a new height of around 72 Million unique addresses with more than 500,000 in daily increase - double that of the Ethereum chain.

The expansion of the unique addresses explains the daily transaction chart of both chains looking very similar - and ready to reach new heights. Two exchanges will be responsible for a significant part of these growths; Uniswap and PancakeSwap.

Uniswap Vs. PancakeSwap

These two exchanges, born out of different chains, define the way we swap, provide liquidity and interact with the decentralized nature of blockchains. Both of the DEX and AMM services will see continued growth as they jockey for position with the host of exchanges crawling out of the woodwork across both chains.

Obtaining the following statistics from the Dex Ranking platform Debank gives a closer look at both DEXes.

Total Transactions in the last 24hrs including Uniswap and PancakeSwap

The total transaction of 2.47 million carried out on both DEX services in the last 24hrs places PancakeSwap ahead of Uniswap (V1, V2, and V3) with a whopping $2.5 billion in Volume, with 2,135,910 total transactions carried out. 

Top 5 DEXes in 24hr volume and TXS by Debank

Uniswap on the other hand saw $2.4 billion in volume, only a slight difference with PancakeSwap volume, but had a significantly lower number of 24hr users and total transactions.

The reason for this is not overly complex; PancakeSwap leverages on the far cheaper and lower fees of the BSC network, which have continued to attract more users and usage. In fact, at the height of the congestion in recent times, the total number of transactions still hasn’t reduced, even despite the now-high fees and failed transactions.

DeFi section showing Uniswap lead over PancakeSwap

What has been intriguing, without a doubt, is the fact that Uniswap remains the king of DeFi despite its low turnout in the daily chart. Uniswap takes the lead of all other DEXes with a $21 billion market capitalization and $1.6 billion overall 24hr volume. 

Compared to PancakeSwap, which has $5 Billion in Market Cap and $744 million overall daily volume less, Uniswap remains supreme. PancakeSwap has struggled to climb up the ladder in the DeFi zone, currently sitting at just the 5th position.

About Uniswap

Uniswap is the world-leading DEX and AMM service on the Ethereum chain. Its significance rose to new heights as it played a major role in the DeFi bull run, wherein most DeFi tokens seek their first listings.

Uniswap on CoinmarketCap

Despite the recent market sell-off, its native token UNI has continued to do well, currently sitting at the $37 mark and a Total Value Locked (TVL) of $8 Billion. The platform is presently in its LP migration phase to its newly launched V3.

About PancakeSwap

Following closely on the heels of Uniswap is the number one Dex on the BSC chain. PancakeSwap, the darling of the BSC network, has continued to soar, leveraging on the cheap fees and fast transactions.

PancakeSwap on CoinmarketCap

Like its counterpart on the Ethereum chain, its native token CAKE has continued to do well, currently sitting on the $30 mark while its TVL is above $9 Billion, a value significantly higher than that of Uniswap with over $1 Billion. The platform, which is also in its V2 phase and LP migration, aims to do more and make more records.

Closing Thoughts

There is no doubt that the Ethereum chain is the current royalty of DeFi and the infrastructure ecosystem. Many popular chains are an extension of the Ethereum chain, using the Ethereum Virtual Machine (EVM), or have been forked from the chain. These chains include Solana Fantom and even the BSC, which has seen more success than many other chains. Yet despite Ethereum’s (and by extension Uniswap’s) lead in total volume, the BSC is seeing a surge of growth fueled by PancakeSwap. It will be very interesting to see how these trends play out once the bull run of the market has come to a close.

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Wilfred Victor

Ace finds himself as a blockchain enthusiast who is focused on growing with the entire crypto sector. He is an energetic and passionate writer who believes that all things are achievable.

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