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Whilst the rest of the market showed some positive returns, with Bitcoin trending upwards, one coin truly stood out, outshining everything else: CAKE.
For those unfamiliar, CAKE, or PancakeSwap, is the primary decentralised exchange on the Binance Smart Chain (BSC) network. Think of it as Uniswap for Ethereum or Raydium for Solana.
In 2021, BSC was second only to Ethereum in terms of total value locked (TVL). However, it set a record for the highest single-day trading volume across any chain, hitting $13 billion, surpassing Ethereum. That same year, CAKE reached an all-time high of $43.96. Fast forward to today, and despite yesterday’s 60% rally, CAKE remains down 94% from its peak.
BSC’s Struggles & New Competition
BSC’s Struggles & New Competition
Since 2021, BSC has struggled to regain its former dominance, despite BNB hitting a new all-time high. The rise of alternative chains such as Solana, Sui, Hyperliquid, Base, and Arbitrum has divided market liquidity, with Solana now commanding a significant share of what BSC once held.
Then there’s Changpeng Zhao (CZ)—one of the most influential figures in crypto. While he is no longer Binance’s CEO or involved in its decision-making, it’s safe to assume he still holds some level of influence or insider knowledge.
The CZ Effect: Memecoins Take Over BNB Chain
The CZ Effect: Memecoins Take Over BNB Chain
CAKE’s sudden spike can be traced to a series of posts by CZ on X (Twitter). First, he hinted that the BNB Chain would start integrating memecoins, prompting speculative investors to bridge funds over and trade newly created memecoins on PancakeSwap.
Then came the highly anticipated post—a picture of CZ’s dog, ‘Broccoli’. Within seconds, multiple Broccoli-themed memecoins were created, leading to an explosive trend. As a result, Broccoli memecoins now dominate the top 11 trending tokens on Dexscreener.
Memecoins: A Liquidity Drain for Altcoins?
Memecoins: A Liquidity Drain for Altcoins?
The growing memecoin mania on BSC introduces another player into the ever-expanding memecoin sector. However, this comes at a cost.
Unlike traditional crypto projects, memecoins don’t retain liquidity—they serve as short-term speculative gambling opportunities. This capital rotation drains liquidity from other altcoins, making it harder for them to sustain rallies. This is also one of the key reasons why Bitcoin dominance continues to rise, while most altcoins struggle to gain momentum.
Stormrake Spotlight: Ondo Finance (ONDO) ($1.33)
Stormrake Spotlight: Ondo Finance (ONDO) ($1.33)
Ondo has given up its previous day’s gains, falling 5% back into the top of the accumulation zone. ONDO remains range-bound, following Bitcoin’s sideways consolidation. Until Bitcoin breaks out, Ondo is likely to trade just above this accumulation zone.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin has once again bounced off the key support at $95.7K. BTC is attempting to reclaim bullish momentum by trading back above all major moving averages. If BTC breaks above the recent lower high of $98.1K, the bulls will regain control.
BTC Total ETF Flows for 13 Feb: $ - 31.0 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum maintains a bullish structure after setting a higher low overnight, but it remains under key moving averages. For ETH to continue this momentum, it needs to break above $2,795, setting up an attempt at the next resistance level of $2,865.
ETH Total ETF Flows for 13 Feb: $ - 3.8 million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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