PancakeSwap boosts CAKE by 18% with a remarkable surge.
The team behind PancakeSwap, a decentralized cryptocurrency exchange (DEX), has announced its intention to decrease the total supply of CAKE tokens. The proposal suggests reducing the native tokens from 750 million to 450 million as part of PancakeSwap’s deflationary model. This model aims to gradually decrease the number of tokens in circulation over time, thereby increasing the value of the remaining tokens.
To gather community feedback, PancakeSwap has invited users to discuss the proposal on their forum before making a final decision. Despite the supply reduction news, CAKE’s price has surged by 18% in the past 24 hours, reaching $2.60 at the time of writing. Additionally, trading volumes for CAKE have increased by almost 175% in the same period.
It’s worth noting that earlier this month, the developers expressed their intention to avoid burning tokens frequently in order to incentivize users to provide liquidity. However, the recent announcement about reducing the token supply comes after PancakeSwap’s November burn report, which revealed that the exchange had burned 0.089% of the total CAKE supply, resulting in a negative net. In November 2023, the project team burned a total of 351,962 CAKE tokens, valued at nearly $880,000 based on current prices. The ultimate aim of the token burn is to remove more CAKE from circulation than is produced.
In other news, PancakeSwap has ventured into the gaming industry by launching a web3 integrated marketplace. For more updates, follow PancakeSwap on Google News.
