PancakeSwap Burns 9 Million CAKE Tokens, Reduces Supply by $19 Million

PancakeSwap, a multi-chain decentralized exchange, has successfully burned 9 million of its native token CAKE. The token burn was announced on January 13, and it marks another effort by the platform to manage its CAKE supply.

The token burn involved a total of 8,947,590 CAKE tokens, which were permanently removed from circulation. This action reduced the supply by approximately $19 million in value. Currently, PancakeSwap’s total supply stands at just over 380 million CAKE, with a circulating supply of 291.69 million. The maximum supply is capped at 450 million CAKE.

CAKE Token Burn History

As of the end of December, PancakeSwap had burned a cumulative total of 36.1 million CAKE, valued at over $113.3 million. Of this, $4.5 million was acquired for burning through the platform’s buyback program. The exchange recorded a monthly net mint of -955,146 CAKE, reducing the total supply by 0.25%.

PancakeSwap’s Growth and Performance

PancakeSwap has shown significant growth, with the total value locked surpassing $2.1 billion. In December, the platform’s total trading volume reached $53.46 billion, with an average daily volume of $1.72 billion. PancakeSwap also reported an increase in unique traders, reaching 2.61 million.

CAKE Token Price Movement

Despite PancakeSwap’s growth, the CAKE token price has declined from the highs of $4.20 reached last month as altcoins rallied alongside Bitcoin. The token’s current value of $2.24 is down 32% in the past month.

“Token burns can help manage the supply of a cryptocurrency and potentially increase its value. However, the impact of token burns on the market can be complex and influenced by various factors.”

In cryptocurrency markets, token burns are a common strategy used by platforms to manage their token supply and potentially increase their value. However, the effectiveness of token burns can be influenced by various factors, including market trends and investor sentiment.

For more cryptocurrency news and updates on PancakeSwap and other decentralized exchanges, visit Global Crypto News.

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