PancakeSwap Announces Burn of 9 Million CAKE Tokens
PancakeSwap has recently announced the burn of over 9 million of its native $CAKE tokens in a move that destroyed over $19 million worth of tokens, helping reduce their circulating supply.
PancakeSwap’s Growing Revenues
PancakeSwap’s team noted that trading fees revenues from various automated market maker (AMM) versions of its platform have risen significant, with trading fees growing over 1,000%.
PancakeSwap Burns Over $62 Million in One Month
PancakeSwap has reported burning CAKE tokens worth over $62 million through various token burns, with values hitting up to $22 million in one month alone, reflecting a significant reduction in the cryptocurrency’s circulating supply.
Cryptocurrency Enthusiasts Aim to Reduce Circulating Supply
Cryptocurrency enthusiasts often aim to reduce the circulating supply of digital assets to lower their supply on the market, causing the price to rise and benefit existing token holders.
CAKE Down Despite Token Burns
Despite token burns, CAKE is down by over 10% over the past 30 days amid an ongoing correction that has seen it lose nearly 30% of its value over the past year.
Decentralized Finance Analytics Platform Data
According to popular decentralized finance analytics platform DeFiLlama, PancakeSwap currently has a $326 million market capitalization and $356 million worth of tokens staked on it, with an annualized trading volume of $174 billion.
Hot Take: Is PancakeSwap’s Token Burn Strategy Working?
PancakeSwap’s decision to burn millions of dollars worth of its CAKE tokens may have an impact on the cryptocurrency’s price and the benefits for its existing holders. However, it remains to be seen whether this strategy is working amidst the ongoing correction in the market. Only time will tell if these moves will indeed lead to price increases for PancakeSwap’s native token.
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