• PancakeSwap Version 3 was launched on the BNB chain on April 3, promising competitive trading fees and liquidity to users. 
  • With the brewing alt season and recent pullback in BTC dominance, the decentralized exchange’s launch could be a sell-the-news or non-event. 
  • CAKE, the native token of the DEX yielded a 5% loss for holders since March 17

PancakeSwap, one of the largest decentralized exchanges in crypto is gearing up for the launch of its Version 3 on the BNB chain. PancakeSwap V3 will launch on BNB on April 3, and promises to offering users more competitive trading fees than its peers. 

The launch of PancakeSwap’s Version 2 turned out to be a sell the news event for the exchange's native token CAKE, in April 2021. With the shift in macroeconomic outlook and the brewing alt season in 2023, it is likely that V3 launch turns into a non-event for CAKE holders. 

Also read: Hottest ZK ecosystem coins and upcoming airdrops: ScrollZKP, LayerZero, Shardeum

PancakeSwap Version 3 prepares for April 3 launch on BNB chain

PancakeSwap, one of the leading multichain Decentralized Exchanges (DEXes) in crypto, is set to launch its Version 3 on April 3. The exchange currently relies on smart contracts to enable swaps without intermediaries. 

Chef Mochi, the Head Chef at PancakeSwap recently revealed in an interview that the Binance Smart Chain leads the way with its fast and low-cost transactions. V3 is therefore being rolled out on the BNB chain. 

The upgrade brings key features like competitive trading fees, higher incentives, new yield-farming tools and liquidity provisioning for DEX users. Currently, the DEX holds over $2.8 billion in tokens, based on data from DeFiLlama. 

The platform’s native utility and governance token CAKE has yielded nearly 5% losses for holders since March 17, in the weeks leading up to the launch of V3 on BNB chain. 

CAKE price nosedived on V2 launch in April 2021

The launch of Version 2 turned out to be a sell-the-news event in April 2021. There was a massive retracement in CAKE price in the weeks following the launch of the DEXes new version. 

As seen in the price chart below, CAKE price climbed in the weeks leading up to launch on April 23 and nosedived, retracing its gains from the month before. 

CAKE/USDT 1W price chart

CAKE/USDT 1W price chart

It remains to be seen whether a similar outcome can be expected from the V3 launch. CAKE price climbed to $4.015 before its decline to $3.656 on Thursday. If the trend from V2 roll-out repeats itself, CAKE could climb to key resistance at $4.015, represented by the 38.2% Fibonacci Retracement, before a correction on V3 launch in April. 

CAKE/USDT 1D price chart

CAKE/USDT 1D price chart 

On its path to $4.015, CAKE faces resistance at the monthly low of $3.793, and the weekly high of $3.890. In the event of its decline, CAKE could find support at the $3.423 level, this has acted as support throughout 2023. 

If the series of events from V2 launch repeat itself, then the downside target for CAKE price is $3.120. 

Can the shifting macro outlook and brewing alt season change the bearish thesis?

Following the collapse of large US banks and Bitcoin’s “safe haven” narrative making a comeback, there has been a significant shift in the macroeconomic outlook on crypto. Bitcoin’s dominance receded by a few percentage points from 44.88% to 44.5%, making way for the alt season narrative and fueling rallies among cryptocurrencies with relatively low market capitalization. 

This macro environment is different from April 2021, when PancakeSwap V2 was rolled out, making it likely that the Version 3 launch turns out to be a non-event, instead of a sell-off for CAKE. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Why Bitcoin remains sideways despite record BTC ETF inflows

Why Bitcoin remains sideways despite record BTC ETF inflows

Bitcoin's relative range-bound movement in the past few months, despite record net inflows of $12 billion across spot Bitcoin ETFs, has sparked worry among investors. Many analysts predicted a highly bullish outlook for Bitcoin when the ETFs launched.

More Bitcoin News

UwU Lend offers bounty reward to uncover its exploiter

UwU Lend offers bounty reward to uncover its exploiter

In a Thursday broadcast, UwU Lend consents to a $5 million bounty reward in ETH to whoever discovers the identity of the hacker(s) who breached their protocol. The DeFi protocol has reportedly suffered another breach, which cost $3.72 million.

More Cryptocurrencies News

AAVE price tumbles 20% in 2024 despite doubling its total value locked

AAVE price tumbles 20% in 2024 despite doubling its total value locked

AAVE, a decentralized crypto lending platform, has noted a massive spike in the total value of assets locked (TVL). Rising TVL is considered indicative of higher relevance among market participants and trust in the platform. 

More Aave News

SEC Chair says Ethereum ETF S-1 approvals likely to come over the summer

SEC Chair says Ethereum ETF S-1 approvals likely to come over the summer

Ethereum was down nearly 5% on Thursday as SEC Chair Gary Gensler suggested spot ETH ETFs will likely receive approval over the course of the summer. The update was accompanied by mixed sentiment from derivatives traders.

More Ethereum News

Bitcoin: Is BTC ready for a new all-time high?

Bitcoin: Is BTC ready for a new all-time high?

Bitcoin whales have increased buying activity to the highest level in two months. Investors show no signs of FOMO despite BTC’s recent tussle with the  $70,000 mark. US spot Bitcoin ETFs experienced a notable uptick in activity, reflecting growing market interest.

Read full analysis