KEYTAKEAWAYS
- PancakeSwap’s trading volume rose 17.65% this week, ranking first among DEXs, driven by a meme coin surge on BNB Chain.
- Standard Chartered suggests investors treat Bitcoin like a tech stock due to its stronger correlation with Nasdaq than with gold.
- Fed’s Bostic expects only one rate cut in 2024, citing bumpy inflation progress and a commitment to data-driven policy decisions.
CONTENT
PANCAKESWAP LEADS WEEKLY DEX TRADING VOLUME
On March 25, according to DefiLlama, PancakeSwap recorded a 24-hour trading volume of $1.493 billion, ranking first among all DEX protocols. Uniswap followed with $1.43 billion.
In the past week, most top 10 DEXs saw a drop in trading volume, except for PancakeSwap:
- Uniswap weekly volume: $8.16 billion, down 28.9%
- Raydium: $2.53 billion, down 12.4%
- Orca: $2.1 billion, down 21.2%
- Meteora: $1.97 billion, down 17.2%
- PancakeSwap: $13.07 billion, up 17.65%
Analysis:
PancakeSwap is the largest DEX on BNB Chain. The recent surge in meme coin trading on BNB Chain may be a key reason for this growth. Meme coins often attract high trading activity because of their high volatility and strong community support. For example, on March 22, PancakeSwap had a 24-hour volume of $2.542 billion — twice as much as Uniswap — mostly due to the meme coin craze on BSC.
This brought more attention and users to PancakeSwap, helping it strengthen its position in the market.
BITCOIN COMPARED TO BIG TECH STOCKS
On March 25, CNBC reported that Standard Chartered said Bitcoin’s price often moves more closely with the Nasdaq than with gold. Investors can treat Bitcoin like a large tech stock.
According to the bank, Bitcoin’s current correlation with Nasdaq is around 0.5, and earlier this year it was close to 0.8. Meanwhile, its correlation with gold has dropped since January and is now just above 0.2.
Geoff Kendrick, head of digital asset research at the bank, said: “Bitcoin trading is closely linked to Nasdaq in the short term. This means Bitcoin can be included in a basket of big tech stocks. Doing this could help Bitcoin play multiple roles in an investment portfolio and attract more institutional buyers.”
Analysis:
This view gives an interesting way to understand Bitcoin, especially in the current market. Bitcoin does show tech-like behavior — high risk and high reward. For investors who seek growth and can handle price swings, treating Bitcoin like a tech stock could be a useful strategy. However, this comparison is more of a short-term idea.
Over time, Bitcoin might balance between being a “tech asset” and a “safe haven asset,” instead of fully acting like one or the other.
FEDERAL RESERVE: ONLY ONE RATE CUT EXPECTED IN 2024
On March 25, Atlanta Fed President Raphael Bostic said he now expects only one interest rate cut this year, down from his earlier forecast of two cuts.
Bostic explained that inflation is likely to come down slowly and in an “uneven” way. He also noted that some businesses are starting to expect inflation to rise again.
Analysis:
The U.S. economy seems to be in a phase where inflation is cooling, but not fully under control. With global risks like energy prices and uncertainty in consumer demand, inflation may not follow a smooth path. Bostic’s updated view shows the Fed is sticking to a data-driven approach and not rushing to ease policy just because markets expect it.
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