Binance, through its venture arm, made a great investment in PancakeSwap which is exclusively built on the BNB chain.
Binance, the largest cryptocurrency exchange in the world, announced on Monday that its venture arm, Binance Labs, has made a strategic investment in the governance and utility token CAKE of PancakeSwap. Binance Labs aspires to lead the next wave of global blockchain adoption by offering Web3 solutions, technology development, marketing, and community support.
CAKE’s price increased by nearly 10% in a matter of hours as a result of Binance Labs’ investment. PancakeSwap (CAKE) is currently trading at $4.78. Furthermore, trading volume has increased by 95% in the last 24 hours.
Binance Labs Invests In PancakeSwap’s CAKE Token
Binance announced on its website on June 6 that its venture arm, Binance Labs, has made a strategic investment in CAKE. The amount invested in CAKE, however, was not disclosed by the company.
With over 400,000 daily active users, PancakeSwap, a decentralized exchange built on the BNB chain, has grown to become the largest dApp on the BNB Chain. It uses an automated market maker (AMM) model to allow users to trade, swap, and stake BEP-20 tokens. PancakeSwap also has a decentralized NFT marketplace powered by BNB.
Binance Labs’ spokesperson stated:
“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.”
The BNB Chain ecosystem has grown dramatically since its inception in 2020. It has handled over 3 billion transactions. Furthermore, it has over 1,300 active dApps related to DeFi, metaverse, blockchain games, NFT, and other topics.
Binance’s global expansion and crypto adoption efforts have accelerated this year. The exchange and its venture arm have also committed to assisting blockchain and cryptocurrency startups.
Binance CEO “CZ” announces a partnership with Malaysian cryptocurrency exchange MX Global to increase cryptocurrency adoption in Malaysia on June 6. Furthermore, the exchange and the Vietnam Blockchain Association have announced a strategic partnership today.
