One of the most popular cryptocurrency exchanges, Binance announced that it has made an investment in PancakeSwap, a decentralized exchange (DEX) built on the BNB Chain.
CAKE is the native token of the exchange which went up to about 10% on Monday after the announcement.
Currently, CAKE is trading at $4.77. Despite the rebound, the coin is still down 36% from the previous month’s $7.46 level, following a difficult May for the crypto market.
Binance Labs aims for the investment to eventually enhance PancakeSwap’s technology, marketing as well as community support along with driving Web3 based services.
PancakeSwap was launched during September 2020. It gives an automated market maker (AMM) enabling consumers to trade and swap decentralized finance (DeFi) tokens.
Also Read: UAE’s Majid Al Futtaim partnered with Binance to offer Crypto Payments
As of now PancakeSwap is the biggest decentralized app (dApp) on Binance’s blockchain network, BNB Chain with more than 400,000 users.
“PancakeSwap has been leading the development and mass adoption of BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL on BNB Chain, we have and will continue to provide strong support for the project,” Head at Binance Labs, Bill Qian said.
Binance is expanding its partnerships into a plethora of fields to expand its reach in the crypto space. It is safe to say that Binance is making a massive impact on web3 adoption. Binance BNB Chain unveiled its enhanced technical roadmap for 2022 and it proves that Binance is going to have a positive effect on the adoption of the new technology.
