- Pancake Swap plans to decrease the overall supply of its CAKE token by roughly 300 million CAKE.
- With a proposed maximum of 450 million CAKE, the remaining amount accessible for future use by the development team is approximately 62 million CAKE.
- The current market capitalization of CAKE stands at about $884.7 million, ranking it as the 42nd largest cryptocurrency globally.
- There is a potential 91% increase from the current price to reach CAKE's all-time high, indicating bullish activity may be on the rise.
PancakeSwap recently made a groundbreaking decision following overwhelming community support, announcing a substantial reduction in the CAKE token supply. This move aims to bolster CAKE’s value, scarcity, and deflationary attributes, enhancing its potential within the market.
The decision was the outcome of a pivotal governance vote held on December 28, 2023. With an astounding 97.8% in favor, only a minimal 2.2% dissented against the proposal to burn 300 million CAKE tokens, effectively reducing the supply from 750 million to 450 million.
PancakeSwap’s team advocated for this cut, citing the discrepancy between the token’s actual worth and its excessive circulating supply. This reduction aligns with their vision of creating "ultrasound CAKE," a more deflationary token compared to Ethereum.
Importantly, the supply decrease won’t impact current CAKE holders as the burnt tokens are sourced from the team’s allocation and treasury. With 388 million CAKE currently in circulation, this reduction would leave 62 million CAKE for future use.
This significant move aligns with PancakeSwap’s ongoing efforts to refine tokenomics and enhance investor appeal. Introducing features like the vote-escrowed model and a buyback and burn program demonstrates their commitment to bolstering CAKE’s deflationary nature and attractiveness to investors.
As of the latest update, CAKE is trading at $3.6, marking a 35% increase in the past week. With a market cap of approximately $884.7 million, it now ranks as the 42nd largest cryptocurrency globally.
Analyzing CAKE’s price chart, we witness a breakthrough above the $1.95 resistance in November, followed by a consolidation phase. Notably, December saw a surge of 90%, positioning the cryptocurrency around the $3.4 – $3.5 resistance levels.
Although CAKE remains 91% down from its all-time high of $44, recent price action suggests a potential shift in its trajectory, hinting at the initiation of a bullish phase.
While this information aims to provide insight, it's important to note the volatile nature of cryptocurrencies. Make informed decisions and conduct thorough research before investing in this space.