After an astonishing 400% increase in Pancakeswap (CAKE) price in the last fortnight, a number of investors have shown massive interest and demand in the token. In this article, we predict the CAKE token’s future price, forecast how high the price can go in 2021, and the future developments on Pancakeswap that make it a good investment to hold.
Buckle in coz the journey to the moon for Pancakeswap (CAKE) holders is sooner than you think!
The rise of CAKE token
CAKE token is the native governance token of Pancakeswap, a decentralized exchange (DEX) built on the Binance Smart Chain (BSC). However, it is key to note that other tokens – FLIP and SYRUP – were also created for the Pancakeswap platform.
Launched at the tail end of 2020, the decentralized app (Dapp) has grown into one of the largest on BSC – competing squarely with other well-known projects such as Uniswap and Sushiswap.
PancakeSwap is the most used #DeFi product on DappRadar right now!
Read more 👇 https://t.co/8fIi22N9DS
— DappRadar (@DappRadar) February 10, 2021
Pancakeswap has carved out a unique platform that allows users to experience any DeFi feature from swapping tokens, staking, farming, and even NFTs. It provides an automated market maker (AMM) run on a smart contract opening the world to users to enjoy the expansive and interesting world of DeFi.
In the next sections, we focus on a brief price history of CAKE, our analysts’ predictions on CAKE’s price in the next few years, how far the price can rise in 2021 and we add a few expert opinions on CAKE’s price target. Samples collected from various analysts predict the price will range anywhere between $10 and $20 in the coming years.
History and price performance of CAKE token
Before diving into the price predictions, let’s look at a brief history of CAKE and how the price has evolved since its launch in late 2020. Starting at an offering price of $1.40, CAKE dropped further at the tail end of 2020 – closing the year at a low price of $0.586, according to stats from Coinmarketcap.
Astonishingly, the rise of Pancakeswap and CAKE started in February after a sudden rise in demand of its governance token. Stats from DApp Radar show a sudden spike in the number of users and volumes on Pancakeswap in late January, which could have triggered the demand for CAKE.
The spike in the number of transactions and volume of CAKE at the end of January (Image: DApp Radar)
On January 28th, CAKE set a new all-time high at $1.49, representing a magnanimous 155% spike in only a month – starting its journey to the moon. As of writing, CAKE is trading at $6.00, a sharp 25% drop from all-time highs set on February 10th, 2021.
A total of 112,870,066 CAKE tokens are in supply with a total market capitalization of $680 million, placing the coin as the 75th largest crypto project on CMC listings.
Cake Price Prediction – How far can Cake token price rise in 2021?
Already 1200% up this year, CAKE token does not look to slow down any time soon. In this section, we focus on the future price predictions of CAKE – focusing on the short term and long term prospects of the token.
The year-to-date performance of CAKE token (Image: Coinmarketcap.com)
The easiest way to make predictions on a decentralized exchange token is by looking at its previous price and the fundamentals driving its nascent project. Looking at the RSI, MA levels, and support/resistance on the daily charts, we predict that CAKE’s price will range between $8 and $15 in 2021.
What is the long term future price prediction for CAKE/USD?
The uniqueness of Pancakeswap – being built on the Binance Smart Chain – makes CAKE a good buy in the long term. The connection to Binance gives the decentralized exchange an expansive network of assets to transact, a scalable and high throughput platform, and low fees. If the scalability and high gas fees problems continue to persist on Ethereum, then expect an increase in demand for Pancakeswap – which could be bullish for CAKE as well.
Another way of predicting the future price of CAKE is by analyzing the DEX’s volumes, which have a spike to over $2.8 billion in the past month – representing a 427% spike in the past month. If CAKE’s price mimics the transactional volume growth then we could see the price settle above $10 in the coming months.
Remember, CAKE is still a budding project and has its risks too. We would advise anyone buying the coin to do so with caution.
Analyst’s view on CAKE’s price
The surge in CAKE’s price and the volumes on the platform is welcoming a new following of the coin – even the critics are starting to believe in it. Despite the centralized nature of Pancakeswap, The Block researcher and crypto enthusiast, Larry Cermak stated the volumes completed by the platform “is pretty impressive” and expects a short term spike in CAKE’s price.
Centralized or not, if this volume sustains and it isn’t just an anomaly, this is pretty impressive. It’s what happens when on-chain transactions get too expensive for the opportunity seeking retail https://t.co/fl0ai1wCLG
— Larry Cermak (@lawmaster) February 10, 2021
One Twitter user, Moneycaller, expects CAKE to follow the trajectory of its competitor – SUSHI – and reach at least $16 in the coming months. However, he doubts if the price will be able to dethrone Uniswap as the largest DEX project – at $21, currently.
— Money (@_Moneycaller) February 12, 2021
CAKE offers you a healthy opportunity to invest and add on to returns in the future but also comes with its own risks. We advise that you invest only what you are willing to lose and do it cautiously. That said, CAKE’s trajectory in the coming year, 2022 and 2023 looks bullish so investors can be optimistic about its future.
Finally, the future of Pancakeswap heavily relies on Binance and BSC – two projects that have become the marketing point for Binance CEO, Changpeng Zhao. The effort put in Pancakeswap – both in development and marketing gives off a very optimistic outlook of CAKE reaching $15.
- Is Pancakeswap safe?
Pancakeswap makes for a good investment for early investors ready to ride with the DeFi wave. The project is also audited by CertiK and supported by Binance, the world’s largest crypto exchange which makes it a solid project.
- Is CAKE a good investment?
If you invested in CAKE at the start of 2021, you could have increased your holdings by 1200%+ showing the token is a good investment. The fundamentals also look solid with increasing volumes on the decentralized exchange and Binance support also paying a huge role in the future of the coin.
- What will be the price of CAKE in one year?
According to our analysis, the price of the CAKE token will range between $8 and $15 in 2021. This means if you invested $100 in CAKE today you can expect to get around $133 to $250 by February 2022.
- What is the price prediction of CAKE in 2030?
CAKE token gives a very optimistic look in the short term but the long term can be blurry. According to our empirical analysis, the CAKE price prediction in 2030 is $19.95 showing the growth of the token could slow down heading to the final years of this decade.
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