Ethereum gas prices have skyrocketed skyrocketing since the bull run started. This has made it almost impractical to swap tokens, especially when trading in small amounts. This has seen investors look for alternatives, and one of them is the Binance Smart Chain DEX, that Pancake Swap runs on.
Pancake Swap’s current adoption rate is so high that its transaction volume has now surpassed that of Uniswap, the largest decentralized exchange on the Ethereum. This has also created lots of demand for projects launching on the Binance Smart Chain.
At the moment, Pancake Swap is doing over $1 billion of transactions every day. Yesterday, $1.1 billion was transacted on the platform, much higher than the $963 million traded on Uniswap. As of today, Pancake has had $463 million worth of transactions with about 79,914 users. In comparison, Uniswap has recorded transactions worth $285 million from approximately 16,917 traders.
The declining number of users on Uniswap is largely attributed to the increasing impractical gas fees on the Ethereum network. Nonetheless, Uniswap is working on ways to turn the situation around. The exchange has announced that it would soon be doing an iteration with the launch of Uniswap V3.
The new version of Uniswap will run on Ethereum Optimism, a layer two scaling solution on the Ethereum network. It will be interesting to see how this plays out, considering that transactions on the Binance network seem to be gaining traction by the day and could be a dominant force.