Launched in September 2020, CAKE gained popularity as the answer to users looking to trade while avoiding unreasonable gas charges. On the other hand, the rise of MATIC has shaken BSC’s share of DEX volume. Let’s find out the best asset to invest in as we delve further into MATIC vs CAKE.
MATIC Coin Review
MATIC Coin is an Ethereum token (ERC-20) that powers the Polygon network. It serves as a unit of payment of transaction fees and can also be used for staking. Besides, it offers a new sidechain solution that aims to resolve delayed transactions, inadequate throughput, absence of community governance, and high gas fees without jeopardizing security — some of the main pain points on the Ethereum blockchain.
MATIC is among the top 20 digital assets and one of the biggest gainers in the past year according to CoinMarketCap. It hit a new ATH price of $2.68 in May 2021.
Just like most cryptocurrencies, the supply of MATIC is limited — only 10 billion coins.
How Does MATIC Work?
MATIC has implemented the Layer-2 solution that brings more scalability to Ethereum. Its modular framework allows developers to create blockchains with fully customizable functions.
MATIC coins are earned through the Polygon network by verifying transactions or carrying out smart contracts on the network to provide computational resources and services.
Pros and Cons of MATIC Coins
Before settling on an investment option, most investors consider the risks involved versus the reward. MATIC is a considerably low-risk investment worth your attention.
- More secure because of the validation system.
- Lower transaction fees.
- Very fast transaction speed.
- Less popular compared to mainstream cryptos.
CAKE Coin Review
CAKE is a BEP-20 token that functions within the PancakeSwap DEX. The main function of the CAKE is to act as a stimulant for liquidity provision to the PancakeSwap protocol.
CAKE is currently among the top 50 cryptos, with a market capitalization of $2.89 billion. It is a deflationary token with no definite maximum supply — it gets burnt to control its value. The circulating supply is around $250 million.
How Does CAKE Work?
PancakeSwap runs on Binance Smart Chain and is utilized to swap BEP-20 tokens. Before swapping, users must add liquidity via liquidity pools.
Another option is to stake CAKE in Syrup Pools, where it will sit for a while thus bringing you profits. Investors will then receive the BEP-20 token in return with a possibility of a rise in value.
Pros and Cons of CAKE Coin
CAKE offers diverse ways to generate income, making it investment-worthy.
- Investors are rewarded by adding liquidity to the exchange.
- A more responsive trading experience for users.
- It is not beginner-friendly.
Cross Analysis: MATIC vs CAKE
Both assets are used for trading value in the crypto marketplaces. Our brief analysis shows there is not much difference between the two regarding their strengths and weaknesses.
MATIC vs CAKE: Strengths and Weaknesses
MATIC has a market capitalization of $13 billion, whereas CAKE is at $3 billion. Thus, MATIC is likely to be more recognizable among consumers compared to CAKE and doesn’t pose as much risk.
The supply of MATIC coins is limited to 10 billion tokens, making it more valuable. On the other hand, CAKE has an unlimited supply in the crypto market; however, the tokens are constantly burned to maintain their value.
How to Exchange Between MATIC and CAKE
The most straightforward way of swapping MATIC to CAKE and vice versa is through Godex.io. It is a straightforward DEX platform that requires no signup or personal information. It is also fast, secure, and offers fixed exchange rates to protect you from price fluctuations. Here are the steps to follow:
- Fill in the order details. Once on the platform, select MATIC and CAKE in the “you send” and “you receive” fields, respectively. Also, enter the amount on one side. The other will fill automatically.
- Enter your recipient wallet address to get your converted coins. Hit the “exchange” button once you are done.
- Send MATIC to Godex. The platform generates a private wallet address to transfer your MATIC coins. There will be a QR code for convenience.
- Wait to receive your CAKE. The process completes fast, usually taking 5 to 30 minutes. Godex lets you know once each stage is done on the left side of the exchange page.
Both CAKE and MATIC have a huge gain potential in the crypto space with a straightforward exchange process that users should look into. MATIC may be more suitable for beginners, so if you are just starting your crypto journey, consider joining the Polygon community.