[Decentralized Applications (dApps)] - Steemit Crypto Academy Season 4 - Homework Post for Task 8
Look for 2 similar dApps and do a detailed fundamental analysis and compare the two dApps and explain the results of your analysis. (Screenshots required).
Introduction
Let's talk about Decentralized Applications . Firstly, lets take the word Decentralized.
The word "Decentralized" simply means all form of control is by the user, there is no third party control. This means there is user freedom.
A decentralized application (dApps) are built on blockchain technology and blockchain have been known to run on a decentralized system. From my earlier explanation on the word decentralized it gives everyone freedom to use and carry out transactions. For dApps they are called peer-to-peer system(P2p)
Look for 2 similar dApps and do a detailed fundamental analysis
The two dApps I will be discussing are the PancakeSwap and BakerySwap. Firstly,let's have a look of this dApps and their ranking.
On dAppRadar
PancakeSwap
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The Pancakeswap is the number one Decentralized Exchange on Binance Smart Chain(BSC).This project was launched in semptember,20 2020.
Today been the 30th of sept 2021. There are 1988 coins and 5570 pairs available for trading on PancakeSwap
On PancakeSwap the BEP 20 token can be swapped at a trading fee of 0.25% trading fee.
Due to the simple, easy and fast trading on PancakeSwap due to it been on the Binance Smart chain and their unique features: Trading, NFTs, Farming, IFOs(Initial farm offering) , Staking
Daily Cake Production
Cake is a native cryptocurrency of the PancakeSwap exchange. The implementation of the burning mechanism to help regulate inflation which is done weekly. CAKE has an infinite supply.
25 CAKE tokens are generated per block, within a 3 seconds block production. This means for each 3 seconds and a total amount of 720,000 CAKE everyday in 28,800 seconds. In a year about 262,800,000 new token would be pushed into circulation.
For demand to be proportionate to supply and avoid inflation that is why the burning mechanism was implemented.
Since this price token is greatly determined by demand, which solely relies on the token. With CAKE is relies on the burning mechanism to level the odds.
Right now the circulating supply is 226,752,785 CAKE, and its current price at $18.91, as long as there is no fall. Regardless, of the burn mechanism I believe it will still maintain this price range.
Cake has a maximum supply and circulating supply. The maximum supply been the highest amount of cake that can be mined and if this point is reached no more cake mine
This in turn will increase the circulating supply. At the end of 2021 I expect that the numbers should be at 350,000 000 and most probably back to $20.
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Bakeryswap
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The BakerySwap is ranked 39 on DeFi of BSC. The very first automated market chain that uses Binance protocool. Its unique token is BAKE with circulating supply of 193,529,493 BAKE. Compared to its listing price it has grown 3 times more.
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historic data for september
Currently, its price is at $1.67. With the recent price drop, the volume is getting high up again.
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Honestly, with the current state of the market I cannot really say what could happen at the end of the year. This is a 1 day chart below
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7 days ago this was BAKE. The price token is greatly determined by its demand and supply.
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| PancakeSwap | BakerySwap |
|---|---|
| Uses CAKE token for trading | Uses BAKE token for trading |
| No online mode of support | Has an online mode of support |
| A decentralized exchange | the first ever made trading platform |
| Used by Crypto and Defi traders | Used by Crypto traders |
| Has various integrations e.g Token pocket, Astro tools, Math Wallet | Has only BSC(Binance Smart Chain) |
Conclusion
PancakeSwap and BakerySwap are both decentralized apps and trading platforms with their unique tokens. Its biggest benefit in that there is no third party. Its Token CAKE and BAKE respectively should be well analyzed before any transaction takes place. Right now they are gradually going up in price. There is great potential for both dApps, the increase in the circulating supply will greatly influence the token price.