Over 5M Cake Burned in The Largest PancakeSwap Weekly Burn

PancakeSwaps deflationary mechanisms are in full swing. A tweet from the official PancakeSwap Twitter account on May 3rd stated that the exchange bought $7.8M of $CAKE back from the market in trading and prediction fees.

By
Wilfred Victor
on
May 4, 2021
Category:
BSC News

Burning

$CAKE tokens power the PancakeSwap ecosystem, and are earned through yield farming or staking in syrup pools. This means users can farm $CAKE with liquidity or stake $CAKE to receive even more $CAKE. Following the launch of PancakeSwap v2, the AMM asked its community of members to vote on a number of proposals regarding the future tokenomics of $CAKE.

From a total of four options with varying incentives and rewards the community voted overwhelmingly in favour of “the big burn” token option which captured over 66% support.

Source

The news was well received from the community, and has helped to fuel the increased burn rates of $CAKE.



Bullish on $CAKE

The ongoing “big burn” is providing yet another reason for investors to be bullish on $CAKE. In February $CAKE was trading at $6, up 1,200% year-to-date. At that time CoinGape predicted that the token could close out the year at $15.

Coinpedia made the far more dramatic prediction of $60 to $80 price for $CAKE by the end of the year. In March, FXStreet predicted that PancakeSwap’s token could hit $21.70. At the time $CAKE token was facing some resistance around the $12-13 mark. By April however $CAKE was already chasing that $20 price point.


Source

Looking at chart data from CoinGecko, $CAKE has performed well in April, making significant gains and breaking through the $20 mark on April 8th. On the day of the “big burn” announcement (April 22nd) $CAKE was trading at around $26, but went on to reach an all time high of $43.96 on April 30th.

$CAKE has slightly retracted to the $37 mark at time of press, but continues to perform well. Analysts remain bullish on the token, but if anything, they have historically underestimated its potential. Taking these factors into consideration, if the trend for growing burn volume continues there remains good reason to be bullish on the future price of PancakeSwap’s native token.


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Wilfred Victor

Ace finds himself as a blockchain enthusiast who is focused on growing with the entire crypto sector. He is an energetic and passionate writer who believes that all things are achievable.