PancakeSwap Achieves Record $310 Billion Year with 179 Percent Growth Driven by L2 and DeFi Expansion
Pancakeswap’s Trading Volume Surges to $310 Billion in 2024.
The massive increase is attributed to the growing demand for decentralized finance (DeFi)
Decentralized Exchanges (DEXs) Experience Explosive Growth
In a remarkable year for decentralized exchanges, PancakeSwap has closed 2024 with a record-breaking $310 billion in total trading volume. This milestone marks a significant increase of nearly 179% compared to the previous year’s $111 billion.
Key Drivers Behind PancakeSwap’s Success
The substantial growth can be attributed to several factors, including:
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Layer-2 Blockchain Networks: The adoption of layer-2 blockchain networks like Arbitrum and Base has played a crucial role in driving trading volumes. According to a report shared with Cointelegraph, Arbitrum saw a remarkable 3,656% year-over-year (YoY) increase to $13.2 billion, while Base experienced a 3,539% YoY surge to $11.6 billion.
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Growing Investor Sentiment and DeFi Activity: The positive market sentiment and increased activity in the decentralized finance (DeFi) sector have contributed significantly to PancakeSwap’s success. As the team at PancakeSwap noted:
"PancakeSwap’s 179% YoY growth in trading volume reflects the positive market sentiment and increased activity in the DeFi and DEX sectors."
PancakeSwap: A Leader in Decentralized Exchanges
With a $2.23 billion daily trading volume, PancakeSwap is currently the second-largest decentralized exchange (DEX), narrowly trailing Uniswap’s $3.11 billion 24-hour volume.
Crosschain Growth and User-Centric Upgrades
PancakeSwap has experienced significant growth across multiple chains, including:
- A 251% increase on Ethereum
- A 155% increase on the BNB Chain
Expanding DeFi Ecosystem and User Experience
The total value locked in DeFi protocols has seen a remarkable rise of over 124% during the year, from $54 billion on January 1 to over $121 billion as of December 24.
Enhancing User Experience with PancakeSwapX
PancakeSwap’s focus on user-centric upgrades has been instrumental in driving engagement. The team highlighted the importance of improving key features:
> "Additionally, our focus on enhancing key features — such as the revamped swap interface, PancakeSwapX, and tools like the Telegram Swap bot — has helped improve the user experience and drive greater engagement."
PancakeSwapX: Zero-Fee Trading and Gasless Asset Swaps
The launch of PancakeSwapX in October 2024 introduced zero-fee trading and gasless asset swaps on the Ethereum and Arbitrum networks, significantly improving the crypto user experience.
Addressing Barriers to Mainstream Adoption
PancakeSwap’s user-centric approach addresses a crucial challenge facing mainstream adoption:
* Complex onboarding processes can intimidate new users, driving them towards centralized exchanges (CEXs).
* PancakeSwap's focus on simplifying the user experience aims to bridge this gap and increase mainstream adoption.
A Leader in Decentralized Finance
PancakeSwap is currently the third-largest decentralized exchange (DEX) by monthly trading volume, with over $49 billion worth of crypto traded during the past 30 days.
