In a remarkable achievement, PancakeSwap has closed the year 2024 as the largest decentralized exchange (DEX) in terms of cryptocurrency trading volume. The milestone is a testament to the growing interest in DEXs and the expansion of layer-2 blockchain networks.
Decentralized Exchange (DEX) Dominance
PancakeSwap recorded an astonishing $310 billion in total trading volume during 2024, marking a nearly 179% year-over-year (YoY) increase from $111 billion in 2023. This remarkable growth is attributed to the increasing popularity of decentralized exchanges and the expansion of layer-2 blockchain networks.
Layer-2 Networks Drive Growth
The record year was mainly driven by the success of L2 networks Arbitrum and Base, as both saw significant YoY increases in trading volume. According to a PancakeSwap report shared with Cointelegraph:
"PancakeSwap’s 179% YoY growth in trading volume reflects the positive market sentiment and increased activity in the DeFi and DEX sectors."
Arbitrum and Base Shine
- Arbitrum saw a staggering 3,656% YoY increase to $13.2 billion
- Crypto trading volume on Base rose by 3,539% YoY to $11.6 billion
The success of these L2 networks is a significant factor contributing to PancakeSwap’s record-breaking year.
Growing Investor Sentiment and DeFi Activity
PancakeSwap attributes the growth in trading volume to both growing investor sentiment and decentralized finance (DeFi) trading activity:
"Additionally, our focus on enhancing key features — such as the revamped swap interface, PancakeSwapX, and tools like the Telegram Swap bot — has helped improve the user experience and drive greater engagement."
PancakeSwap’s 2024 Milestones
- Total trading volume: $310 billion
- Daily trading volume: $2.23 billion (second-largest DEX)
- Crosschain growth: significant YoY increases across multiple chains, including:
- Ethereum: 251% increase
- BNB Chain: 155% increase
DeFi Activity Sees Significant Growth
The total value locked in DeFi saw a remarkable 124% increase during the year, from $54 billion on Jan. 1 to over $121 billion as of Dec. 24.
PancakeSwapX: Enhancing User Experience
PancakeSwap’s focus on enhancing user experience has contributed significantly to its growth:
"Without products like PancakeSwapX, new DeFi users first need to set up a native Ethereum address and buy Ether (ETH) to pay transaction fees before being able to transact on the blockchain."
User-Centric Upgrades
PancakeSwap’s user-centric upgrades have helped improve the overall experience and drive greater engagement.
Record Year Amidst Industry Growth
The $310 billion milestone comes amidst growing interest in DeFi protocols and DEX trading. PancakeSwap is poised to continue its success, driven by its focus on enhancing user experience and expanding its offerings.
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