CAKEUSDT Archives

28th December 2023

PancakeSwap To Burn 300 Million CAKE, Why Is This Whale Moving Coins?

Amidst PancakeSwap’s proposal to burn 300 million CAKE and reduce the total supply from 750 million to 450 million CAKE, on-chain data indicates that a whale has been moving a significant amount of CAKE, the decentralized exchange’s governance token.

Whale Is Moving Tokens As Key PancakeSwap Voting Event Proceeds

According to a report from Scopescan, a blockchain analytics platform, a whale has moved approximately 1.7 million CAKE worth $1.3 million in the past week from Binance, Gate.io, and Bitget to a series of crypto addresses. The timing of this transfer is noteworthy since it coincides with key voting that would permanently shape PancakeSwap’s tokenomics.

CAKE whale moving coins from exchanges | Source: Scopescan via X

The proposed token burn is gathering significant support, with over 90% of CAKE holders in agreement. According to the proposer, reducing the total supply to 450 million CAKE is reasonable. It would also ensure sufficient supply for future growth while achieving “ultrasound CAKE.”

Herein, the idea is to make CAKE deflationary over the long term, and this may support prices as PancakeSwap continues to play a vital role in token swapping in the broader BNB Chain ecosystem.

According to DeFiLlama data, PancakeSwap is the largest DEX in the BNB Chain ecosystem, with a total value locked (TVL) of $1.6 billion, commanding roughly half of the network’s TVL of around $3.5 billion. Notably, PancakeSwap has been resilient and continues to evolve, shaking off competition even after the deployment of Uniswap v3 on the BNB Chain.

In the past 24 hours, PancakeSwap has generated over $815,000 in fees, more than 7.5X that of Venus, a lending protocol, the second largest in the BNB Chain ecosystem.

PancakeSwap TVL | Source: DeFiLlama

Is CAKE Ready For $10?

Notably, the token burn proposal also comes when PancakeSwap is undergoing significant changes, including the recent introduction of veCAKE and Voting gauges, whose voting concluded on November 22. With this proposal passing with over 99% community support, veCAKE holders can now vote on where future CAKE farm emissions will be directed.

This gives CAKE holders greater governance influence. Supporters maintain that this crucial decision makes the DEX more decentralized and community-facing.

Ahead of PancakeSwap’s plans to burn 300 million CAKE, prices have been rallying. From the weekly chart, CAKE is up by over 260% from 2023 lows, roaring as demand increases. While bullish, bulls are yet to reverse losses of this year. A critical resistance level remains at around $5. A solid, high-volume break above this line could propel CAKE to around $10 in the coming months.

7th November 2023

Altcoins Rally: What’s Next After The Breakout

Altcoins have witnessed a significant surge recently, with their collective market capitalization rising from $575 billion to $615 billion in just a few days – an increase of 7%. This momentum hints at the potential for further growth in the Altcoin sector.

Breakout From Descending Triangle

The Altcoin market capitalization had been trading within a descending triangle pattern since its yearly peak in April. This technical pattern, characterized by a series of lower highs but consistent lows, typically signals a bearish sentiment – suggesting that each rally is met with increasing selling pressure, keeping upward price movements in check.

However, this past weekend marked a pivotal change. The market capitalization decisively broke through the pattern’s upper resistance line, surging by 7%. Such a breakout from a descending triangle is a bullish pattern, often indicating a reversal of the prior downtrend. With this breakout, the market cap is now eyeing the target set by the initial peak of the pattern, which could mean an additional increase of 7%.

The significance of this breakout is further highlighted by the fact that the Altcoin market cap has not only broken through the resistance but also surpassed the previous high set in July. This breach could signal that the market is transitioning from a bear-dominated phase to a bullish one, where buyers are regaining control and pushing the market to new heights.

Bitcoin Decreasing Dominance

Bitcoin’s dominance on the market has recently slipped to 52.50%, down from its annual peak of 54%. This is a normal market fluctuation, considering Bitcoin had been on a ten-week streak of increasing dominance.

Yet, it’s crucial to note that Bitcoin’s market share has dipped below the pivotal 53% support level. Should Bitcoin fail to reclaim dominance above this support level, we could anticipate a further decrease to the next support at 49%, opening the door for Altcoins to capture a greater portion of the cryptocurrency market cap.

In bear markets, Bitcoin’s dominance tends to increase as the market pulls back, which suggests that if Bitcoin manages to hold or increase its price, Altcoins could experience further rallies.

Conversely, an increase above the 53% support could set Bitcoin out for the next resistance at 58%, at the expense of Altcoins’ market share.

Historically, bull markets often begin with Bitcoin leading the way due to events like the halving event, which reduces the inflow of new Bitcoin.

Nonetheless, there are still phases when Altcoins rapidly gain momentum, experiencing significant and rapid price increases. The current market breakout, along with a reduction in Bitcoin’s dominance, hints that such a phase could potentially unfold now.

Top Altcoins Gains

In the past week, many Altcoins have witnessed remarkable gains. Here are the top performers:

Pancake Swap: +95%
Trust Wallet Token: +53%
Neo: +48%
MultiversX: +46%
Blur: +45%

Predycto is the author of a cryptocurrency newsletter. Sign up for free. Follow @Predycto on Twitter.

24th August 2023

PancakeSwap V3 Takes The Stage On Ethereum’s Layer 2 Linea Mainnet

PancakeSwap, a leading decentralized finance (DeFi) platform, has officially launched its anticipated Version 3 (V3) on the Linea Mainnet.

According to the announcement, the collaboration between PancakeSwap and Linea aims to provide a seamless trading experience with lower fees, increased liquidity provider returns, and enhanced capital efficiency.

PancakeSwap V3 On Linea

Linea, formerly known as ConsenSys zkEVM, stands as Layer 2 scaling solution powered by ConsenSys. Linea achieves faster transaction speeds and reduced gas costs while ensuring security by utilizing zero-knowledge proofs and maintaining full Ethereum Virtual Machine (EVM) equivalence.

Developers can seamlessly create or migrate Ethereum apps without code modification or smart contract rewriting. With native integrations of popular tools like MetaMask and Truffle, Linea empowers developers with flexibility and scalability on the zkEVM.

The collaboration has provided PancakeSwap users with insights into Layer 2 scaling solutions and the Linea platform, contributing to the development and adoption of decentralized financial solutions.

Per the announcement, PancakeSwap v3 on Linea introduces two key features: advanced Swap and Liquidity Provision functionalities. These features enable users to trade tokens and participate in liquidity provision directly on the platform.

The core principle of PancakeSwap v3 is maximizing capital efficiency, allowing liquidity providers to concentrate their capital within specific price ranges where most trading occurs.

By optimizing asset utilization, liquidity providers can enhance their earnings. PancakeSwap v3 enables liquidity providers to achieve a capital multiplier of up to 4000x compared to its predecessor, v2, thus maximizing returns.

While the provision of Linea incentives to PancakeSwap has not been communicated at this point, if they are provided, PancakeSwap intends to share them with various stakeholders, including the CAKE community, CAKE stakers, projects contributing to PancakeSwap’s development, and ecosystem contributors. The protocol’s “Chefs” concluded the announcement by stating:

We anticipate the exciting opportunities ahead as PancakeSwap v3 takes its momentous leap onto Linea. We are thrilled to work hand in hand with other projects, developers, builders, and our vibrant community as we continue to push the boundaries of Multichain DeFi. Together, we can foster innovation, drive adoption, and shape the future of decentralized finance. We invite you all to join us on this remarkable journey as we unlock new realms of possibility and create a thriving ecosystem that benefits everyone involved.

PancakeSwap

Currently priced at $1.28, PancakeSwap’s token (CAKE) has experienced a slight downward movement in the past 24 hours, with a decrease of 0.02%.

Over 7 days, it has seen a decline of 7.89%, and over 30 days, a decrease of 13.85%. Looking at a longer timeframe, PancakeSwap has encountered significant volatility, with a decline of 68.79% over the past 180 days.

Featured image from Unsplash, chart from TradingView.com

28th July 2023

PancakeSwap Joins The Ranks Of DeFi Giants On zkSync Era: Here’s Why It Matters

Decentralized Exchange (DEX) PancakeSwap (CAKE), has announced the launch of PancakeSwap v3 on zkSync Era, a Layer 2 scaling solution that promises to deliver improved scalability, efficiency, and cost-effectiveness to its users.

According to the announcement, with the popularity of ZK rollups increasing and users and builders increasingly looking to L2 solutions, PancakeSwap is thrilled to offer users and developers even more reasons to build and trade on its DEX.

The Benefits Of PancakeSwap v3’s Swap Feature On zkSync Era

PancakeSwap v3 on zkSync Era comes with several exciting features, including Swap, Liquidity Provision (LP), Farms, and Initial Farm Offering (IFO).

The Swap feature allows users to enjoy quick and cost-effective token swaps through a user-friendly interface. With multi-tier fee structures ranging from 0.01% to 1%, traders can select the fee structure that aligns best with their trading preferences and liquidity pool engagement.

With low trading fees, users can trade their favorite tokens seamlessly while enjoying enhanced liquidity and reduced slippage.

Moreover, the Liquidity Provision feature lets users become part of PancakeSwap’s thriving decentralized exchange ecosystem by providing liquidity. Liquidity providers earn passive income through trading fees when people use their liquidity pool to complete swaps.

Per the announcement, with the scalability of zkSync Era, users can maximize their returns, achieving an impressive capital multiplier of up to 4000x.

Users can engage in Swap, LP, and social media tasks to earn loyalty points and unlock exclusive NFTs. The Galxe campaign provides an opportunity to explore and experience the power of PancakeSwap on this ecosystem, unlocking the full potential of the platform.

Ultimately, the integration with zkSync Era allows PancakeSwap to increase its transaction capacity and reduce congestion on the Ethereum network. As the popularity of DeFi continues to grow, the Ethereum network has become congested, leading to high gas fees and slower transaction times.

By leveraging Layer 2 scaling solutions like zkSync, PancakeSwap can significantly increase its transaction capacity, reduce congestion, and offer users a more reliable and cost-effective trading experience.

What’s more, the integration with zkSync Era is expected to pave the way for the mass adoption of DeFi. By offering users faster and cheaper transactions, PancakeSwap can attract more users to the platform, increasing the adoption of DeFi as a whole.

PancakeSwap’s Revenue Hit By Market Conditions

PancakeSwap has experienced some fluctuations in its market performance recently. According to Token Terminal data, PancakeSwap’s circulating market cap is currently $313.88 million, with a 1.16% decline in the past 24 hours.

Meanwhile, its fully diluted market cap has declined by 3.22% in the same period, currently standing at $1.12 billion.

Similarly, the total value locked on the platform has also decreased by 0.77% in the past 24 hours, currently sitting at $1.23 billion.

Over the past 30 days, PancakeSwap has generated $1.20 million in revenue, representing a decline of 26.02%. Its annualized revenue has also decreased by 32.11% to $14.55 million. The trading volume on PancakeSwap for the past year is $40.22 billion, indicating a 16.00% decline.

The fully diluted P/F ratio of PancakeSwap has increased by 31.2% to 26.21x, while its P/S ratio has also increased by 29.1% to 76.46x. In the past 30 days, PancakeSwap has generated $3.49 million in fees, representing a decline of 27.23%. Its annualized fees have decreased by 32.59% to $42.45 million.

These figures suggest that PancakeSwap’s performance has been impacted by recent market trends. Despite the decline in revenue and trading volume, the platform’s P/F and P/S ratios have increased, indicating a higher valuation for the company.

PancakeSwap

Featured image from Unsplash, chart from TradingView.com

13th December 2022

PancakeSwap (CAKE) Slides Below Range, Is This An Entry Point For Buyers?

PancakeSwap (CAKE) has been trading against the broad market, especially when major market movers have rallied. The coin has lost 0.8% over the last 24 hours and still depicts no decisive price action on the chart. Despite the CPI data release, the coin has remained unaffected by that development. CAKE traders are still wary of the asset’s next price movement.

The technical outlook for the coin has painted a bearish picture on the chart. Although that seems to be the case, there could be a scenario in which CAKE makes a comeback. After rangebound trading for weeks, the coin has finally broken below its lower band, indicating a chance of a price appreciation. This could prove beneficial for traders who are planning to log gains from the crypto.

Risk-averse traders, however, should be careful about investing as the coin still continues to signify a further potential loss over the immediate trading sessions. The asset is still hovering around pockets of high liquidity, which could prove to be a negative point for traders. For CAKE to register further gains, the coin has to breach some vital trading levels.

PancakeSwap Price Analysis: One-Day Chart

At press time, CAKE was exchanging hands for $3.80. The coin just fell below the lower band of the restricted price zone. CAKE was sandwiched between the $4.20 and $3.90 price bands, which represented increased selling. The coin’s immediate price ceiling was $4.08; a move above that could cause the coin to revisit $4.30.

Breaching the $4.30 mark will clear the path for the altcoin to reach $4.90. Over the immediate trading sessions, however, the coin is expected to fall to $3.40 before it bounces back. The aforementioned level could act as an entry point for buyers. The amount of CAKE traded in the last session remained red, signifying bearish strength.

CAKE Technical Analysis

The coin has remained under the power of sellers for most of this month. The recent drop in price has pushed CAKE further into the selling zone. The Relative Strength Index was below 40, indicating a strong selling force.

Further selling pressure could cause CAKE to fall below $3.40 and then to $4.30, resulting in a 26% rally. CAKE fell below the 20-Simple Moving Average line due to low buyer demand, indicating that sellers were driving the price momentum at press time.

Corroborating that CAKE might start to register gains, the Parabolic SAR sided with the same observation. Parabolic SAR determines the price direction, and the dotted lines below the candlesticks reflect incoming bullishness for the coin.

On the contrary, though, the Awesome Oscillator that exhibits price momentum turned red, marking a sell signal for the coin. The signal was, however, declining in strength.

6th September 2022

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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25th April 2021

These 3 Altcoins on Binance Smart Chain Could Skyrocket, Says Lark Davis

Popular crypto YouTuber Lark Davis talked about Binance Smart Chain (BSC) many opportunities for investors. With its low fees and fast transactions, Davis believes this ecosystem provides the kind of experience that the people want.

BSC flagship product PancakeSwap (CAKE) has given its competitor a run for their money and even managed to “eclipse Ethereum” in terms of transaction volume, according to Davis. The analyst cited data from DappRadar that claims BSC outperformed Ethereum on this metric, at least for a 24-hour period.

Binance Smart Chain BNB CAKE — Source: DappRadar

PancakeSwap experienced an all-time high number of users during the past week and registered some issues due to the high congestion. Davis said:

Binance Smart Chain hit a an all-time of 8.5 million transactions. I think it is pretty obvious what we are seeing right here. People want exposure, they want to get into DeFi. They want to get into crypto and use the different products.

The analyst reiterated Ethereum’s disadvantages and the high number of users that have been price out of the platform. When it comes to adoption, the “numbers speak for themselves”. PancakeSwap’s native token trading volume sits at $1.1 billion in the daily chart. Ethereum DEX Uniswap record a similar number but has been lagging behind its competitor. David added:

I suspect that we’re going to continue to see Pancakeswap moving up the charts and becoming a more and more prominent decentralized exchange. The users are there. The daily volume’s there. Just the market cap is a bit behind in comparison to Uniswap which only does half the daily volume right now.

Binance Smart Chain (BSC) Expansion And New Opportunities

This ecosystem is anything but static and will be making an entry into other crypto trends, like non-fungible tokens (NFT). For that, they will launch the BSC Station to allow users to do auctions for these assets to a “wide” audience. The platform will also integrate a BSC Swap feature along with the NFTs.

This development will be supported by Morningstar Ventures, NGC, BSCPad, x21, and many others. Its growth could positively impact PancakeSwap (CAKE), and the other projects on Davis’ list, Refinable (FINE), and Smoothy Finance (SMTY).

Refinable seeks to leverage the NFT’s nascent period. Davis believes this project could “get a good share of the market”. The platform is supported by Mr. Beast, a YouTuber with 60.4 million subscribers, in cooperation with Binance.

The platform’s native token FINE will give power to their holders, the NFTs creators trading on Refinable. For example, FINE holders can increase the royalties and distribution of an asset and participate in the governance model.

Davis’ second project, Smoothy Finance (SMTY) is also doing some “serious stuff”. Users can leverage their swap feature with 0 slippages to trade different dollar-pegged coins. Davis added:

(…) this is the infrastructure that actually allows DeFi to work in a smooth fashion for people. It allows it to be a good user experience where you’re not getting crushed on fees, you’re not getting crushed on slippage and so this kind of product actually allows users to have that nice user experience.

Binance native token BNB is trading at $500 moving sideways in the daily chart. In the weekly and monthly chart, BNB has a 3.1% loss and a 113% gain in respectively.

Binance Smart Chain BNB CAKE PancakeSwap — BNB with sideways movement in the 24-hour chart. Source: BNBUSDT Tradingview

22nd April 2021

PancakeSwap Approves “Big Burn” For CAKE, Why It Could Be Massively Bullish

Centralized and decentralized exchanges are stepping up their game, with the upcoming launch of Uniswap v3, competition in the sector is bound to be fierce. PancakeSwap’s second iteration is also around the corner. CAKE holders will be able to profit.

In a recent vote, PancakeSwap’s community decided to approve a feature called the “Big Burn”. Therefore, after April 23^rd “Great Migration” the exchange will buy back and burn more CAKE “than ever before”. Every trade in PancakeSwap v2 will “contribute” to this mechanism.

The exchange’s daily trading volume sits at around $4 billion. According to the recently approved burn mechanism, this figure will be multiple by 0.05%. As a result, around 2.2 million CAKE could be buyback and burned each day. If PancakeSwap maintains its current daily trading volume, its native token buying pressure could skyrocket for the benefit of investors.

PancakeSwap CAKE CAKEUSDT — Source: PancakeSwap

Analyst Vivian Medithi published an article on Nasdaq making some bullish predictions on CAKE. At that time, CAKE was trading at $21.26 following a 1,200% year-to-date rally in February. The analyst highlighted the bearish sentiment of some investors and the token’s capacity to prove them wrong.

Medithi quotes Coinpedia, Wallet Investor, and Digital Coin to backed up a bullish case for this token. The predictions place CAKE between $44 to 80 by the end of 2021. Next year, CAKE could trade for $150 and $280 by 2026. These predictions were made before the “Big Burn” was approved and don’t take into account the new potential increase in buying pressure.

What’s PancakeSwap “Great Migration”?

Tomorrow at 5:00 am UTC, the “Great Migration” will take place on PancakeSwap. Due to the upcoming update, the exchange’s smart contract PancakeSwap Router and PancakeSwap Factory required a change in their feed structure. CAKE holders can vote to modify this component.

They were presented with 4 options: Split (increase trading fee to 0.22%), Burn (0.22%), Big Split (0.25%), and Big Burn (0.25%). As mentioned, users opted for the latter which also provides a 0.17% fee for liquidity providers and keeps PancakeSwap’s fee below the “tradition 0.3%” used by their competitors, according to an official post. The migration will also add the following:

(…) we’re creating a new set of LP Tokens, and our farms and exchange will start supporting the new type instead of the old ones.

Investors with tokens on this exchange should be aware that they will stop receiving rewards for the “old type of LP Tokens. Instead, the rewards will shift to the new ones. Users must take their tokens out of all PancakeSwap’s products and add liquidity with the new token to re-stake in new farms to maintain their rewards. The team behind the exchange added:

We’ll also make a new set of farms with the same rewards and token pairs as the old ones. The old farms will stop giving out rewards, so you’ll need to transfer to the new ones to keep farming yield.

CAKE is trading at $26,85 with a 2.9% loss in the daily chart. In the weekly and monthly chart, CAKE has 17.1% and 144.9% profits, respectively.

8th April 2021

PancakeSwap Gunning For Uniswap as CAKE Hits $20 ATH

PancakeSwap, the DEX that bills itself as a faster and cheaper alternative to UniSwap, hit an all-time high today of $20.69. The total value locked in the Binance Smart Chain (BSC) also hit an all-time high recently, at $24.4bn.

The platform has been operational for half a year, compared to two and a half years for UniSwap. Considering its success, in a comparatively short time, should UniSwap be concerned?

PancakeSwap vs. UniSwap: Battle of DEXes

Although DeFi is associated with Ethereum, where DeFi activity occurs, excessive gas fees have opened up demand for cheaper alternatives. Enter PancakeSwap.

PancakeSwap is a decentralized exchange (DEX) running on the BSC. It uses an automated market maker (AMM) model to fulfill orders instead of the order book model that matches buyers and sellers as seen on traditional exchange platforms.

Code analysis shows PancakeSwap is a copy of UniSwap, with several lines still referring to UniSwap. Ethereum maxis have labeled the platform a rip-off. However, proponents of open source code say it’s fair game.

Nonetheless, PancakeSwap includes additional features not found on UniSwap. Not only is it possible to stake liquidity provider tokens to earn CAKE, but it’s also possible to stake CAKE to earn more CAKE or other BEP20 tokens. Currently, most of the APYs on offer are over 100%, with FOR Pool now yielding the highest at 123.71%.

Both have similar volumes and market share, with UniSwap edging ahead on both counts and pulling forward substantially regarding the number of markets available. But the fundamental difference comes down to cost.

UniSwap vs PancakeSwap metrics

Source: coinmarketcap.com

PancakeSwap fees are paid in BNB with trades costing cents, a marked difference compared to UniSwap, where peak congestion times equate to eyewatering charges. This becomes particularly apparent for users making lower-value transactions.

Binance Smart Chain is Not Decentralized

BSC uses a version of PoS called Proof-of-Authority (PoA). This essentially means three-second block times for quicker transaction settlement and lower fees as there is little network congestion.

“Proof of Authority (PoA) is a modified form of Proof-of_Stake (PoS) where instead of stake with the monetary value, a validator’s identity performs the role of stake.”

Add to that compatibility with the Ethereum network, and there are compelling reasons for users and devs to shift to BSC. Over 63mn unique addresses are currently using the network. With mid-February seeing a vertical uptake of users coming on board.

Source: bscscan.com

However, critics say BSC is not true DeFi as Binance manages the network nodes. This also means the network has a single point of failure. Then again, the real crux of the matter is that users tend to care more about yields and low fees than decentralization.

Can PancakeSwap and BSC take over? Well, crypto is not necessarily a zero-sum game. All platforms can likely flourish together.

PancakeSwap chart

Source: CAKEUSD on coingecko.com