- PancakeSwap, the second-largest decentralized exchange protocol, is expanding to Ethereum Layer 2 solution Linea, backed by Consensys.
- This move makes PancakeSwap the seventh smart contract platform to be distributed across multiple chains.
- As competition intensifies in the multi-chain future, altcoins face increasing challenges.
As bear markets intensify, Layer 1 solutions like Solana and Layer 2 solutions like Polygon are encountering more competitors. The number of smart contract networks was not as high during the 2021 bull market as it is today. Almost every month, we see the mainnet transition of a new Layer 1 solution. This suggests that the next bull market could bring unusual conditions with the multi-chain world.
PancakeSwap’s Latest Move
PancakeSwap, the second-largest decentralized exchange protocol, has been launched on the Linea mainnet, an Ethereum layer2 scaling network backed by Consensys, as part of its multi-chain expansion. PancakeSwap announced today that Linea will assist users with lower transaction fees, faster transactions, and improved capital efficiency.
Linea, an Ethereum scaling solution, processes transactions on its own network before collecting/approving them on the main Ethereum network, which speeds up transactions and reduces fees. Linea is a zk network that launched its mainnet in July.
After swap and liquidity provision features, it is expected that PancakeSwap will bring its farm feature to Linea in the coming months. The farm feature allows users to stake their liquidity provider tokens and earn PancakeSwap’s native CAKE token while holding a position in LP tokens. PancakeSwap is also expected to distribute its first farm offer or IFO platform, which provides early access to new tokens, to Linea in the coming months.
The Multi-Chain Future in Crypto
PancakeSwap announced its seventh blockchain today. Initially built on the BNB Chain, PancakeSwap now supports Ethereum, Aptos, Polygon zkEVM, zkSync Era, and Arbitrum One. Among these 7 altcoins, alternatives like Aptos, Era entered our lives during the bear market. In 2021, we had a world where networks like Solana, Avalanche had fewer competitors. Now, the number of competitors is rapidly increasing even before the bull markets kick in.
If alternatives continue to increase at this rate, and crypto adoption does not increase at the same speed, we may encounter ghost networks. This could prevent parabolic altcoin rises similar to those seen in the 2021 bull season. Naturally, the long-term outlook in areas of strong competition is also negatively affected by this.
