cryptojournalist
PancakeSwap, a leading decentralized exchange (DEX), recorded a massive $310 billion in trading volume for 2024, a 179% increase from $111 billion in 2023. This growth was fueled by the expansion of layer-2 (L2) blockchain networks, rising decentralized finance (DeFi) activity, and user-focused platform upgrades.
Key Drivers of Growth
Layer-2 Blockchain Boom
The adoption of L2 networks like Arbitrum and Base played a major role:
Arbitrum: Trading volume surged 3,656% year-over-year (YoY) to $13.2 billion.
Base: Volume grew 3,539% YoY, reaching $11.6 billion.
DeFi Expansion
The total value locked (TVL)* in DeFi protocols rose by 124% in 2024, jumping from $54 billion in January to $121 billion by December. This surge in DeFi activity drove more users to PancakeSwap.
Cross-Chain Growth
PancakeSwap also saw significant growth across major blockchains:
Ethereum: Trading volume increased by 251%.
BNB Chain: Trading volume rose 155%.
Innovations Driving User Engagement
User-Centric Features
PancakeSwap introduced new tools and features to improve the user experience, including:
PancakeSwapX: Launched in October, this tool allows gasless, zero-fee trading on Ethereum and Arbitrum.
Telegram Swap Bot: Aimed at simplifying transactions for users.
Revamped Interface: Enhanced usability for both new and experienced traders.
These upgrades helped reduce barriers for mainstream users, who often find DeFi onboarding intimidating due to complex steps like setting up wallets and purchasing Ethereum for transaction fees.
Competitive Position
PancakeSwap is now the second-largest DEX, with a daily trading volume of $2.23 billion, trailing only Uniswap’s $3.11 billion, according to DefiLlama. It also ranks third by monthly trading volume, with over $49 billion traded in the past 30 days.
*TVL: Total value locked refers to the total amount of cryptocurrency held in DeFi protocols.
