PancakeSwap, a leading decentralised exchange (DEX) on the Binance Smart Chain (BSC), reached a remarkable milestone in May 2025. The DEX surpassed Uniswap, the dominant DEX on Ethereum, in trading volume.
Specifically, PancakeSwap recorded an impressive $174 billion in trading volume, outpacing Uniswap’s $150 billion.
This shift marks a pivotal moment in the decentralised financial (DeFi) landscape. It highlights the growing competition between blockchain ecosystems. It also raises critical questions about the future of DEXs, their native tokens, and their positions relative to centralised exchanges (CEXs).
Consequently, this article explores the implications of PancakeSwap’s dominance. It will compare Ethereum and BSC DEXs. Moreover, it will evaluate the impacts on CAKE and UNI tokens. Finally, it will assess whether DEXs are overtaking CEXs, ultimately guiding traders on future trading platforms.
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PancakeSwap has risen to the top of the DEX wars
PancakeSwap’s ascent to the top of the DEX market in May 2025 underscores its growing influence in DeFi. According to recent data, PancakeSwap’s 68.2% of the total DEX volume stood at about $81 billion over the past seven days to the time of publication. During the same period, Uniswap’s volume was around $26 billion, or 21.7% of the total decentralised exchange volume.
This dominance reflects several strategic advantages. For instance, PancakeSwap leverages BSC’s low transaction fees. Often, the service is significantly less expensive than Ethereum’s gas fees. Despite consistent upgrades, fees can soar during network congestion.
Additionally, BSC’s faster block times enable quicker transaction confirmations, enhancing user experience. These factors have fuelled PancakeSwap’s ability to process high volumes. This is why it significantly outstripped competitors like Aerodrome, QuickSwap, and DoDo, which managed less than $20 billion each.
Moreover, PancakeSwap’s multichain expansion, including support for Ethereum, Polygon zkEVM, zkSync Era, Linea, Base, Arbitrum One, and Aptos, has broadened its appeal.
By offering features like yield farming, staking, non-fungible token (NFT) marketplaces, and lotteries, PancakeSwap creates a comprehensive DeFi ecosystem that attracts diverse users.
Consequently, its ability to innovate, such as the PancakeSwap Infinity upgrade, which features customisable liquidity pools and up to 99% gas cost reductions, positions it as a formidable competitor.
PancakeSwap statistic’s impact on the DEX market
PancakeSwap’s surpassing Uniswap signals a transformative shift in the DEX market. Firstly, it highlights the growing competition between BSC and Ethereum-based DEXs. While Uniswap has long dominated due to its first-mover advantage and deep liquidity for Ethereum Request for Comments (ERC)-20 tokens, PancakeSwap’s cost efficiency and speed are drawing users away.
This shift suggests that user priorities are evolving, with cost and speed increasingly outweighing liquidity for many traders. As a result, other DEXs may need to adopt similar low-fee, high-speed models to remain competitive.
Furthermore, PancakeSwap’s dominance could accelerate the adoption of multichain strategies. As DEXs expand across multiple blockchains, they reduce their dependence on a single network, mitigating risks like Ethereum’s high gas fees or BSC’s perceived centralisation.
This trend could lead to a more interconnected DeFi ecosystem, where cross-chain bridging, as seen with PancakeSwap’s support for several blockchains, becomes standard.
Consequently, the DEX market may see increased innovation. Many platforms may be vying to offer unique features like PancakeSwap’s auto-compounding Position Manager or Uniswap’s concentrated liquidity in V3.
Ethereum DEXs vs. Binance Smart Chain DEXs
When comparing Ethereum DEXs, like Uniswap, to BSC DEXs, like PancakeSwap, several key differences emerge. Ethereum DEXs benefit from higher liquidity and a broader range of ERC-20 tokens, supported by Ethereum’s extensive developer community and established DeFi ecosystem.
Uniswap, for instance, boasts a total value locked (TVL) of around $5 billion, significantly higher than Cake’s TVL of $1.78 billion on BSC. However, Ethereum’s high gas fees, sometimes reaching hundreds of dollars during peak periods, deter smaller traders.
In contrast, BSC DEXs excel in affordability and speed. PancakeSwap’s transaction fees are typically 0.25%. Liquidity providers (LPs) receive a fee of about 0.17%, while Uniswap charges a flat 0.3% fee.
BSC’s low fees, often less than $0.23 per trade, and fast transaction speeds of 3 to 5 seconds make it ideal for high-frequency trading and yield farming. However, BSC’s smaller DeFI ecosystem and perceived centralisation due to Binance’s influence over BNB token voting raise concerns about security and decentralisation. This situation is in stark contrast to Ethereum’s robust, decentralised framework.
Therefore, Ethereum DEXs remain the go-to for traders who prioritise liquidity and token variety. On the other hand, BSC DEXs attract cost-conscious users seeking quick, affordable trades.
Therefore, the choice depends on individual needs. That said, PancakeSwap’s recent volume leap suggests BSC DEXs are gaining ground.
Impact on CAKE and UNI Tokens
PancakeSwap’s trading volume surge has positively impacted its native CAKE token, which serves as a governance and reward token. On May 1, 2025, CAKE had an opening trading price of $2.0364. Due to extensive trading activity within its ecosystem, which saw CAKE involved in the processing of numerous transactions, the token exploded by more than 40%. CAKE reached a month-high price of $2.9126 on May 27. The crypto token closed the month on May 31 with a trading price of $2.3075. During May 2025, CAKE soared by 13%.
The platform’s deflationary tokenomics is on course to reduce its supply. However, analysts remain cautious. CoinCodex analysts predict CAKE could trade for an average price of $5.53, the least possible price of $4.70, and the best possible price of $6.05 before the end of the year.
In the same vein, Uniswap’s UNI token has also performed on the same trajectory. Trading at $5.2716 during early May, the token rose by 45% to a month-high price of $7.6344 on May 29. UNI closed May 2025 with a trading price of $6.0570. Overall, the DEX-backed token spiked by 15% during the period.
Uniswap’s strong liquidity, integrations, and focus on layer 2 solutions like Optimism and Arbitrum could reduce fees. This could potentially boost UNI’s value if bullish momentum returns.
CoinCodex analysts forecast UNI to exchange hands for an average price of $10.67, the smallest possible price of $9.94, and the biggest possible price of $11.66 by the end of 2025.
Are DEXs Surpassing CEXs in Volume?
DEXs are gaining significant ground against CEXs. In 2025, DEXs continue to fight for a substantial part of global spot trading volume.
PancakeSwap alone contributed $175 billion, while Uniswap added $150 billion, indicating DEXs are no longer niche.
In contrast, top CEXs like Binance still dominate. Binance continues to see more than $15 billion in daily trading volume. Others such as Echobit have also begun strongly with more than $30 billion in daily trading volumes. The above statistics signal a structural shift toward more DeFi applications.
Nevertheless, CEXs maintain advantages like lower fees for high-volume traders and stricter token vetting, which reduces scam risks.
DEXs, however, offer anonymity, no Know Your Client (KYC), and user control over funds, appealing to DeFi enthusiasts.
As DEX volumes grow, they may challenge CEXs further. If innovations like PancakeSwap’s Infinity and Uniswap’s V4 continue to enhance the user experience, this could hold true.
Should You Trade on DEXs or CEXs in the Future?
Choosing between DEXs and CEXs depends on your trading goals. DEXs like PancakeSwap and Uniswap offer low fees, rapid transactions (on BSC), and user control, making them ideal for yield farming, staking, and trading exotic tokens.
However, they carry risks like smart contract vulnerabilities and potential impermanent loss in liquidity pools.
CEXs, such as Binance, provide a more regulated environment, lower fees for large trades, and user-friendly interfaces but require KYC and carry custodial risks.
For cost-conscious traders or those seeking DeFi opportunities, PancakeSwap’s low fees and multichain support make it attractive.
Conversely, Uniswap suits those who prioritise liquidity and Ethereum-based tokens.
CEXs remain better for beginners or high-volume traders needing stability.
Ultimately, diversifying across both, while staying informed about market trends and risks, is prudent.
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Conclusion: Are DEXs the go-to trading platforms after the PancakeSwap milestone?
PancakeSwap’s $174 billion trading volume in May 2025, surpassing Uniswap’s $150 billion, marks a turning point in the DEX market.
It highlights BSC’s cost and speed advantages, challenges Ethereum’s dominance, and boosts CAKE’s value while pressuring UNI.
As DEXs capture a growing share of global trading volume, they are reshaping DeFi, competing closely with CEXs.
Traders should weigh their priorities, like cost, liquidity, or security, when choosing platforms. This will ensure you navigate this dynamic landscape with caution and strategy.
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