PancakeSwap Tops DEX Volume, But Price Lags: Why?
PancakeSwap Dominates DEX Volume
In a surprising market shift, PancakeSwap V3 has overtaken Uniswap in weekly trading volume, reaching a staggering $14 billion in May 2025, according to a recent AMBCrypto analysis. This represents a significant 58.04% weekly surge, solidifying PancakeSwap's position as the leading decentralized exchange (DEX) globally. The platform now commands 29.18% of total DEX trading activity, boasting a daily Total Value Locked (TVL) of $1.67 billion.
- Key takeaway: PancakeSwap's massive volume increase is driven by several factors, including lower transaction fees on the BNB Chain and the popularity of memecoins.
This dramatic rise contrasts sharply with Uniswap's performance. While Uniswap maintains a higher TVL of $3.93 billion, its weekly trading volume plummeted by 50.56% to $8.611 billion.
Factors Behind PancakeSwap's Success
Several factors contributed to PancakeSwap's impressive growth:
- Lower transaction costs: The BNB Chain offers significantly lower transaction fees compared to Ethereum, making it more attractive to traders.
- Faster transaction speeds: Quicker settlement times enhance the overall user experience.
- Memecoin popularity: The increasing popularity of memecoins on the BNB Chain fuels substantial trading activity on PancakeSwap.
Price Action Tells a Different Story
While PancakeSwap dominates in volume, its token price hasn't mirrored this success. While Raydium [RAY] saw a 5.46% price increase to $3.54, and Uniswap [UNI] experienced a 0.90% rise to $6.46, PancakeSwap's token only saw a modest 0.15% increase to $2.46.
This divergence highlights the complexities of the crypto market. Trading volume is a crucial indicator, but investor sentiment and broader market conditions significantly influence token prices. This situation underscores the importance of considering multiple factors when assessing the performance of crypto projects.
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