Binance Labs, the venture capital and incubation arm of Binance (CRYPTO: BNB), has made an investment in PancakeSwap, a decentralized exchange built on BNB Chain.
The investment is aimed at facilitating the next wave of global blockchain adoption by providing technology development, marketing and community support, and enterprise solutions for Web3 transformation.
PancakeSwap’s utility and governance token (CRYPTO: CAKE) is trading up about 8% following the announcement, according to Coinmarketcap.
CAKE is currently trading at $4.70, down about 40% from the $7.46 level from a month ago on the back of a tumultuous month for the crypto markets.
Launched in September 2020, PancakeSwap has grown to be the biggest dApp on BNB Chain with daily active users of over 400,000.
“PancakeSwap has been leading the development and mass adoption of BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL on BNB Chain, we have and will continue to provide strong support for the project,” Bill Qian, Head of Binance Labs, said.
With more than 1,300 active dApps across multiple categories such as DeFi, Metaverse, blockchain games, and NFTs. BNB Chain has processed more than 3 billion transactions from 163 million unique addresses since its launch in 2020.
Binance Labs has not yet revealed details on the size of the investment.
Binance Labs had recently launched a $500 million fund to invest in projects that can extend the use cases of cryptocurrencies and drive the adoption of Web3 and blockchain technologies.
The fund is supported by global institutional investors like DST Global Partners, and Breyer Capital.
Other major private equity funds, family offices, and corporations also subscribed to the fund as limited partners.
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