The crypto market is showing very little movement today, with mostly flat rates. PancakeSwap (CAKE) has managed to be a standout today with a 5.24% increase rate of $3.33 (CAKE/USD).
What Is Making the CAKE Rate Soar Today?
A lot of cryptocurrency tokens get pushed up like what Bitcoin is doing. Of course, if the Bitcoin rate is decreasing, a lot of crypto coins will be falling as well as a result. Today, Bitcoin (BTC) is up just 0.05% and leading a market that is not really going anywhere.
Major crypto player Ethereum (ETH) is up 0.10% and Cardano is down 0.32%. These numbers are hardly worth reporting, but PancakeSwap, the #78 ranked crypto coin, is doing well for itself today. It was down to $3.14 yesterday, which was a 7% drop from the day before. So, this coin has mostly recovered from that decline thanks to today’s gains.
Bitcoin and much of the crypto market saw a similar drop yesterday, but they haven’t made the kind of recovery that PancakeSwap has.
In fact, the CAKE coin is more volatile right now than many of the major cryptocurrency coins. Its trade volume is down 8.99% with a 24-hour trade volume of $45 million.
So, why is the CAKE rate moving more than the big crypto coins’ rate? Well, CAKE has a smaller trade volume and market cap and is an active and popular coin. It doesn’t take as much to move the rate as it would with something like Ethereum and Bitcoin.
Should Investors Be Looking into PancakeSwap?
Over the last month, PancakeSwap has been very volatile, making for an interesting investment, if nothing else. Overall for the year, however, this coin has gone down erratically but markedly, following a late trend from the previous year. It has held onto some gains from time to time throughout 2022, but there is no indication right now that the CAKE rate will break out and keep its gains over a long period of time.
Investing in any crypto coin right now in today; s market is risky, unless you are willing to trade form hour to hour and watch the market closely or you expect the market to turn around in the long term. PancakeSwap is proving to be a better mid-length investment than some of the other cryptos, so it could pay off for people who check in every few days or every week, but there is still a lot of risk there that the price could drop off and stay down.