PancakeSwap (CAKE) has topped the crypto sentiment rankings for the past week.
Sentiment for crypto CAKE is soaring
This was revealed by Sentifi, pointing out that over the past seven days among the major cryptocurrencies CAKE has clearly outperformed the others in both sentiment score (82) and attention buzz (+49%).
Over the past seven days, CAKE has performed decidedly well, compared to the others, although it was not the one with the highest gain among the top 100.
In fact, among them KLAY (Klaytn) and FTM (Fantom) stand out with a weekly +23%, while CAKE (PancakeSwap) stopped at +7%, also surpassed by XMR (Monero), NEO and AAVE.
What distinguishes CAKE seems to be a clear trend change, also underlined by the remarkable performance of sentiment.
A month ago, the PancakeSwap token was priced at around $9.5, but on 12 May it had collapsed to $3.5, a loss of 63% in just a few days. Since then, it has risen again and is continuing to rise, so much so that it is now back above $5.
It is worth noting that its current price is 67% lower than a year ago, and 88% lower than the all-time high of April 2021.
To be fair, it had already tried to recover in mid-March this year, but had been falling again since the beginning of April.
In some ways, this trend is similar to that of UNI, the token of the other famous DEX Uniswap. In fact, UNI too has gained 7% over the past seven days.
PancakeSwap had achieved resounding success in early 2021, when it went from $0.6 to $44 in just over three months. In the same period, UNI rose from $3.5 to $43.
The link between the market and the major DEX governance tokens
However, after the drop that began in mid-April 2021, the DEX tokens have not been able to return to their highs, and in fact month after month they have continued to lose.
The fact that in the last seven days CAKE has scored the best sentiment score among the major cryptocurrencies could indicate a possible reversal of this trend, as DEX tokens have never been abandoned anyway.
It is worth pointing out, however, that among the cryptocurrencies with the best sentiment over the past seven days there are no other DEX tokens, as in second place is FIL (Filecoin), in third place SHIB (Shiba Inu), in fourth place VET (VEChain) and in fifth place COMP (Compound). Of these only COMP has to do specifically with DeFi, where DEX are the main platforms.
There does not seem to be a widespread increase in sentiment towards DEX, but towards PancakeSwap specifically. Just as there does not seem to be any sentiment towards DeFi, but specifically towards Compound, even though COMP’s attention buzz dropped by 43%.
The implosion of the Terra ecosystem may have played a significant role in this, with many users looking for other DEX and other DeFi protocols that could absorb those fleeing Terra. Curiously, Compound is on Ethereum, while PancakeSwap is on BNB Chain (formerly Binance Smart Chain).
It is possible that the negative consequences on crypto markets of Terra’s implosion have worn off, and that a new period of adjustment is now beginning with capital fleeing in search of new DeFi protocols to invest in.