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PanCakeSwap Soars Over 50% After 10 Million Tokens Burned – Details

The recent increase in value of PancakeSwap has captured the attention of the cryptocurrency community, as its token, CAKE, witnessed an extraordinary 54% surge in just the past seven days.

With a robust market capitalization of nearly $900 million and an impressive fully diluted valuation of $1.3 billion, PancakeSwap has solidified its position as a significant player in the decentralized finance (DeFi) space.

Strategic Token Burn Propels PanCakeSwap Ascendancy

One of the key strategies contributing to PancakeSwap’s success lies in its proactive approach to managing token supply.

In a strategic move to boost scarcity and create a more attractive investment proposition, PancakeSwap executed a token burn, incinerating more than 10 million CAKE tokens, valued at approximately $34 million, on December 26.

This deliberate reduction in the total supply by 40% has not only impressed investors but also earned PancakeSwap the endearing title of “everyone’s favorite DEX” (Decentralized Exchange).

Despite prevailing market consolidation, the CAKE token has managed to defy the odds, maintaining a price above $2.1 and extending its recovery trend. Within just one week, the coin’s price soared to the current trading value of $3.37, breaking decisively from a falling wedge pattern.

This latest burn has resulted in a notable reduction in the circulating supply of CAKE tokens, decreasing from 275 million to 265 million. Consequently, this development propelled the CAKE price by 18%, pushing its market cap to $894 million.

Crypto burns play a pivotal role in the digital assets sector by reducing asset supply, thereby creating heightened demand and boosting the value and prices of cryptocurrencies.

Although a proposal to cap the maximum supply at 450 million was previously made by the network to recover losses suffered by CAKE crypto, it is yet to be implemented. Meanwhile, the team will continue with substantial burns to support price movement until an alternative decision is reached.

Weekly Token Burns Signal PanCakeSwap’s Commitment

The PancakeSwap team has further disclosed their intention to continue these token burns on a weekly basis, demonstrating a commitment to this approach until a decision is made to alter it.

This diminishing supply, coupled with the optimistic technical outlook, is anticipated to sustain a robust recovery trend in CAKE price.

Meanwhile, the coin’s 24-hour trade volume increased by 37% to $284 million, with one-month gains exceeding 50%. Moreover, the token reached a new 30-day peak of $3.65 on Tuesday.

As of the latest update, CAKE maintains a bullish stance, registering a 27% increase in the previous day’s trading and gaining over 6% within one hour of the most recent token burn.

The altcoin has also garnered increased crowd interest, with daily volume soaring by 75% to $330 million, although it remains 90% down from its April 2021 all-time high of $44.20.

Featured image from Shutterstock

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CAKE Sets Sights For $5 After More Than 7 Million Tokens Are Sent To A Fiery Death

The Pancakeswap token (CAKE) has been one of those cryptocurrencies that have been steadily growing in the background. The popularity of the decentralized exchange (DEX) contributed tremendously to its rise until it took a hit in the bear market like other digital assets. However, a new development has opened up new promises as millions of CAKE tokens have been removed from circulation.

7 Million Burned CAKE 

A scheduled burn had seen millions of CAKE tokens taken out of circulation. Pancakeswap announced the burn on Twitter with figures showing that a total of 7,123,715 CAKE had actually been sent to a burn address. The total dollar value came out to around $29 million.

The team also reported growth across various spheres. The first was a 17% increase in trading fees, accounting for 334,000 CAKE and a dollar value of $1.38 million. Lottery and pottery saw a 28% increase with 40,000 CAKE with a dollar value of $166,000. The largest increase was in the NFT Market, Profile, and Factory, with a 215% increase of 16,000 CAKE and a dollar value of $65,000.

CAKE finds support above $4 | Source: CAKEUSD on TradingView.com

Others, such as the Prediction and Auction, were listed with declines. The auction had seen a decline of 1%, translating to 15,000 CAKE with a dollar value of $62,000, while Prediction dropped 18% with 75,000 CAKE, a dollar equivalent of $308,000.

Ready For Another Bounce?

The burn announcement had sent CAKE’s price on an initial impressive rally that saw it break above $4.2. The digital asset had initially been trending below $4 for the better part of last week before the news of the burn.

However, the uptrend didn’t last long as momentum had died down. This first bounce was obviously fueled by the hype created with the burn announcement, so a correction was expected. With a trend like this, though, there is usually another bounce that comes after the first once the digital asset finds its footing.

CAKE has now found support right above the $4 level, which has landed it above the 50-day moving average. With the rise in the popularity of decentralized finance (DeFi) once more following the Ethereum Merge, decentralized exchanges such as Pancakeswap are expected to see more volume. With this volume will come a demand for digital assets such as CAKE, and this demand is expected to push the price of the digital asset towards $5.

CAKE’s price is up 1.16% in the last 24 hours and ranks 3rd on the list of top trending coins on Coinmarketcap at the time of this writing. With a market cap of $577.8 million, it is the 68th largest cryptocurrency by market cap.

Featured image from The Coin Republic, chart from TradingView.com

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PancakeSwap Adds Some Sweetness, Expands 6% In Last 7 Days

PancakeSwap (CAKE) most recent recovery sped up its bullish momentum as shown in the daily 20 and 50 EMA.

  • PancakeSwap looking bullish
  • CAKE price plunges 3.25%
  • DMI shows neutral

With the current economy of cryptocurrencies, traders need to know when it’s time to dip their toes and carve their potential to become millionaires.

The ensuing growth of PancakeSwap has brought the alternative coin dangerously close to its short-term EMAs. But in the upcoming sessions, the $4.4-$4.2 area might continue to present obstacles to recovery.

CAKE Shows Rising Wedge Recovery

The rising wedge recovery that CAKE experienced set the stage for its bullish revival. But by re-igniting the relatively brief selling pressure, the $4.2-$4.4 range changed from support to resistance.

According to figures by Coingecko, PancakeSwap is up 6% in the last seven days, and trading at $3.95 as of press time.

Before hitting roadblocks in the immediate resistance range, a potential rebound from trendline support might help buyers advance near-term gains.

Near the EMAs, a slow-moving phase has been caused by these motions. A strong reversal from the trendline support might give the bulls the upper hand and spark a choppy break.

The 20 EMA was able to go above the 50 EMA despite a patterned breakdown, and the currency found support close to the trendline resistance.

Source: TradingView.com

In the $4.2-$4.4 level, the current bounce from trendline support may reverse. A bounce back from this range would set up the coin for another attempt at the support of the trendline.

In either scenario, a slide below the trendline’s level of support would send a sell signal and confirm a bullish invalidation.

In order to show a reduction in the selling pressure, the Relative Strength Index (RSI) crawled itself just over the midline point. The bullish advantage might be reaffirmed by maintaining a position above the 50-level.

More so, the selling activity indicated a little ease in the Chaikin Money Flow (CMF). To support their bullish bias, however, traders should watch for a potential closure above the equilibrium.

Meanwhile, the $4 area may present obstacles for the current comeback from the trendline support. Buyers should keep an eye out for a sustained closure above the 20/50 EMA to confirm the bullishness because the indicators are flashing conflicting signals.

PancakeSwap – A Reliable DeFi

The previously discussed possible targets would continue to exist. Finally, keeping an eye on the king coin’s movement may enable you to place a successful wager.

PancakeSwap is the top DEX (decentralized exchange) on the Binance Smart Chain. The most frequented decentralized exchange is this food-themed DEX, which was founded anonymously in 2020 and has quickly gained popularity among DeFi aficionados.

The native token, CAKE, is given to investors in exchange for liquidity and can later be staked once to generate additional CAKE in a supercharged earning process. CAKE is regarded as one of the most reliable DeFi coins and a crucial investment.

CAKE total market cap at $566 million on the daily chart | Source: TradingView.com

Featured image from 10Clouds, chart from TradingView.com