PancakeSwap loses nearly 3% value intraday as the DEX crosses $1 billion in trade volume

• PancakeSwap announced that the exchange has reached $1 billion in trade volume on the Base chain.
• $CAKE holders have consistently realized losses on the DEX token in April 2024.
• $CAKE price wiped out nearly 3% of its value on Tuesday.

Decentralized exchange (DEX) PancakeSwap ($CAKE) announced in an official tweet that it has crossed $1 billion in trade volume on the Layer 2 chain, Base. $CAKE on-chain metrics support the thesis of a recovery in the DEX token’s price.

$CAKE price is $2.694 at the time of writing.

DEX hits key milestone

PancakeSwap’s announcement early on Tuesday shows that the exchange crossed $1 billion in trade volume on Coinbase’s Base chain, a Layer 2 built-to-scale Ethereum chain.

The rise in trade volume indicates the DEX is relevant among market participants and boosts the utility of its native token, $CAKE.

Other catalysts influencing $CAKE are on-chain metrics like Network Realized Profit/Loss (NPL) and Market Value to Realized Value (MVRV), as seen on Santiment.

The NPL chart shows negative spikes throughout April, this is consistent with $CAKE holders realizing losses and is likely a sign of capitulation. Typically, capitulation is followed by an increase in the asset’s price.

Network realized profit/loss

The Market Value to Realized Value is in the opportunity zone when the value is between -6% and -30%. $CAKE MVRV is currently in the opportunity zone, meaning a recovery in $CAKE price is likely.

MVRV ratio (7-day and 30-day)

At the time of writing, $CAKE price is $2.694 and the DEX token is likely to regain lost ground, supported by bullish signals from on-chain metrics.