PancakeSwap’s massive token burning update fuelling the rally
NFT marketplace launch just around the corner
Daily trading volumes on PancakeSwap exceed both versions of Uniswap
JAIPUR (CoinChapter.com) – The CAKE/USDT pair broke out of its stagnation to log an 18% rally. The pair topped out at $22.86 amid PancakeSwap’s weekly CAKE burn event. A total of 7,177,652 tokens worth $162 million went to a “dead-end” address.
Bullish bets on the CAKE/USDT pair rose significantly amid PancakeSwap’s “all-time high” claim for the latest token burn event. The decentralized exchange also bought back $3.44 million worth of CAKE tokens from the market, it said in its latest tweet.
💰This week we bought back $3.44M of CAKE from the market (Trading + Prediction) 🔒NFT+Profile+Vault: $321k 🎟️Lottery: $525k (25,010 CAKE) 🛍Auction: $620k (29,620 CAKE)
PancakeSwap is an Automatic Market Maker (AMM), like Uniswap but native to Binance Smart Chain, Binance’s Ethereum compatible blockchain. It lets users earn passive income through liquidity mining, staking, etc. Users receive liquidity (read LP) tokens in exchange for providing liquidity in a particular pool.
The PancakeSwap protocol also allows users to farm its native tokens – CAKE and SYRUP. Users can also bet on CAKE tokens to receive SYRUP, which has additional functionality as management tokens (and lottery tickets).
Why CAKE Burning Caused A Price Spike?
Essentially a burning process renders tokens unusable, pulling them out of the total supply permanently. Thus, a supply squeeze sets in motion due to the introduction of a deflationary feature. Furthermore, since CAKE already enjoys optimum demand due to PancakeSwap’s widespread adoption in the DeFi space, a token burn (an ATH one) implies a reduced circulation.
A similar scenario played out in the recent rally, and bulls ended up buying CAKE tokens en-masse to avoid a classic FOMO-laced situation. However, it’s not the token burning that sent CAKE/USDT spot rates soaring.
Volumes Exceed Uniswap And Upcoming NFT Marketplace
Apart from Wednesday’s token burning event, long-term investors also assessed PancakeSwap’s leading position over Uniswap V2 and V3 (regarding daily trading volumes, transactions, and users) to place buy bids on the CAKE/USDT pair.
Check out the last 24h of top 3 blockchains; – VOL: @PancakeSwap > Uniswap (V2 + V3) – TXS and USERS are not even comparable
The CAKE/USDT pair formed a double bottom setup during its intermittent bearish phase. Traders placed long bets on the bullish formation after analyzing the said formation. However, the rally has led CAKE into the overbought territory.
Relative strength index (RSI) peaked at 75.45, after which profit-takers appeared to sell the $22.86 local top. The token nonetheless remains fundamentally bullish on account of the above-discussed factors. Nevertheless, bearish pressures could push down the CAKE/USDT pair to $20.58. But if bulls manage to take back control, a reclamation of $26.16 would become likely. Beyond it, the next target for buyers lies at $29.84.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
SOL prices jumped more than 41% over the last seven days. The token likely reacted to news of Solana's...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.