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PancakeSwap has recently experienced a slight increase in the price of its native token, CAKE, following the announcement of a significant token burn. The multi-chain decentralized exchange revealed that it had burned over 9 million CAKE tokens.
The price of PancakeSwap’s CAKE rose by approximately 2.3% after the announcement, helping buyers recover from earlier lows of $1.64 to around $1.72. At the time of writing, the 24-hour trading volume surged more than 37%, reaching $21.3 million.
PancakeSwap’s Token Burn
On September 2, PancakeSwap announced via X that it had permanently removed 9,171,676 CAKE tokens from circulation. According to the decentralized exchange (DEX), this burn represented CAKE tokens worth $15 million.
🔥 9,171,676 $CAKE just burned – that’s $15M! 💰
The breakdown of the recent token burn is as follows:
- Trading fees (AMM V2): 177k CAKE ($295k) -9%
- Trading fees (AMM V3): 156k CAKE ($260k) +140%
- Trading fees (Non-AMM like Perpetual, Position manager, etc): 359 CAKE ($0.6k) +27%
- Prediction: 62k CAKE ($104k) -8%
This latest token burn reduces the circulating supply of CAKE to 264,190,448 tokens, which accounts for 58.71% of the total supply. The community has consistently aimed to reduce the circulating supply through regular token burns.
Across the cryptocurrency market, many projects utilize token burning mechanisms to decrease the circulating supply of their native tokens. The primary goal is to create scarcity, which can have a bullish impact on the asset’s price.
In December 2023, PancakeSwap introduced a significant proposal on CAKE tokenomics, asking the community to vote on reducing the CAKE supply by 300 million tokens. This proposal aimed to cut the maximum supply from 750 million tokens to 450 million tokens. The vote passed, and PancakeSwap currently has a total supply of 383,118,820 CAKE, with a capped maximum supply of 450 million tokens.
For more news and updates on the latest happenings in the cryptocurrency world, keep exploring Global Crypto News.
