- To date, more than 750 million CAKE tokens have been burned
- Weekly trading volume on PancakeSwap fell 10%
As part of the latest round of fires, the popular decentralized exchange (DEX) PancakeSwap has withdrawn approximately 7.15 million CAKE tokens from circulation. The burned tokens were worth $27 million.
🔥 7,153,999 $CAKE just burned – that’s $27 million!
💰 Trading Fee (Swap and Perpetual): 255k CAKE ($958k) +80%
🔮 Prediction: 84k CAKE ($315k) +31%
🎟️ Raffle&Pottery: 35k CAKE ($132k) +44%
🔒 NFT Market, Profile & Factory: 560 CAKE ($2k) +4% pic.twitter.com/PFeMFxIN9c— PancakeSwap 🥞 #Multichain (@PancakeSwap) March 6, 2023
More than 750 million tokens have been burned to date. In fact, CAKE’s circulating stock had dropped to 180.65 million at the time of writing.
However, despite the development, the price of the altcoin did not react positively and fell by 1.68%. It may be due to the fact that the recently burned tokens made up about 2% of the total supply of CAKE. From a macro perspective, this was not a very significant number.
However, as they exert deflationary pressures, coin burning is one of the most sought after events in the crypto space.
Read Pancake Swap [CAKE] Price forecast 2023-2024
Trading volume, TVL is falling
PancakeSwap has managed to generate huge hype lately due to the imminent launch of its third iteration V3 on the BNB chain in April. This development comes after the proposed implementation of Uniswap V3 on the BNB received the go-ahead from community members.
Unfortunately, the hype failed to boost on-chain trading activity for PancakeSwap. Weekly trading volume fell 10%, while the weekly average of daily users also marginally declined, data from Token Terminal revealed.
Source: Token Terminal
Moreover, the vital DeFi indicator also disappointed. The total value locked on the network (TVL) is down nearly 15% since hitting the $4 billion mark on Feb. 9.
Source: DeFiLlama
How much are 1,10,100 CAKEs worth today?
On-chain activity slows down
According to data from Santiment, daily active addresses are down 23% since the weekly peak on March 3. The drop in the number of active addresses lowered the frequency with which CAKE tokens moved across the network.
However, this could change if one is to believe the sharp increase in daily transaction volume in profits. The prospect of realizing higher profits may prompt holders to execute more trades. However, it can lead to increased selling pressure in the short term.
Weighted sentiment was also negative, indicating that investors are not very keen on CAKE.
Source: Sentiment