In recent days, SafeMoon (CCC:SAFEMOON-USD) has emerged as the latest meme coin generating a buzz on social media. Some have even said that SafeMoon is the next Dogecoin (CCC:DOGE-USD), pointing to its quickly growing following. However, as SafeMoon prices have rocketed higher and come back down, a real winner is PancakeSwap (CCC:CAKE-USD).
As a quick refresher, the SafeMoon crypto appears to be the latest star in the market frenzy. On April 19, SafeMoon prices rocketed 100% higher in one day. The cryptocurrency is relatively new, having first launched in March 2021. However, its strong social media presence and promise to reward long-term holders has attracted supporters. Essentially, SafeMoon says it bakes in rewards for holders and adds transaction fees on sellers, which then get redistributed to holders.
So where does PancakeSwap come in to this story?
Well, because SafeMoon is a relatively new token, investors have very few options to trade it. Current exchange options include WhiteBit and BitMart, and it plans to launch on the ZBG Exchange later today. One of the most popular options though remains PancakeSwap.
To buy SafeMoon, investors can withdraw BinanceCoin (CCC:BNB-USD) from their Binance accounts. Investors then transfer their BNB to Trust Wallet accounts and connect to PancakeSwap. The final step involves converting a chosen amount of BNB on PancakeSwap to SafeMoon.
For SafeMoon bulls, this is a complicated process that has prompted more than a few complaints. For PancakeSwap, this is an upside catalyst that helped the CAKE crypto soar to new all-time highs on Wednesday, April 21. In fact, new data from the Binance Smart Chain shows that PancakeSwap transactions came in at 2 million over a 24-hour period. That eclipsed total transactions of 1.55 million on the entire Ethereum network.
The SafeMoon Crypto and PancakeSwap Prices
So what else should you know about PancakeSwap right now? And how do red-hot SafeMoon crypto prices tie in?
Right now, it seems that there is a clear connection between the role PancakeSwap plays in SafeMoon purchases and the increased volume of transactions it is processing. However, there are a number of other factors at play. As one writer highlighted, decentralized finance (DeFi) projects continue to attract investors. Therefore, growing interest in PancakeSwap and CAKE token gains could be the result of this continuing pivot. Plus, one PancakeSwap co-founder told CoinTelegraph that the biggest upside catalyst actually comes from the ability to attract and maintain customers. According to the co-founder, Chef Hops, PancakeSwap succeeds in maintaining customers because its fees are much lower than those of other options.
For investors, that just means the story with rising PancakeSwap (CAKE) prices is not exclusive to the SafeMoon story. SafeMoon just simply adds some icing on the cake.
One more thing to watch? SafeMoon prices have also been following, and are now down more than 50% from their recently set all-time high. You can read more about SafeMoon here.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.