PancakeSwap has proposed to burn 300 million CAKE and reduce the total supply from 750 million to 450 million CAKE. On-chain data shows that a whale has been transferring a substantial amount of CAKE, the decentralized exchange’s governance token. "PancakeSwap Burns 300 Million CAKE, Whale Activity Raises Questions"
Whale Is Moving Tokens As Key PancakeSwap Voting Event Proceeds
According to a report from Scopescan, a whale has transferred around 1.7 million CAKE tokens valued at $1.3 million over the past week. The transfer involved moving the tokens from Binance, Gate.io, and Bitget to a series of crypto addresses. This transfer is significant as it aligns with key voting that will have a lasting impact on PancakeSwap’s tokenomics.
The proposed token burn has gained significant support, with over 90% of CAKE holders in agreement. The proposer suggests reducing the total supply to 450 million CAKE, which is deemed reasonable and would ensure sufficient supply for future growth while achieving "ultrasound CAKE."
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The goal is to make CAKE deflationary in the long term, which may help support prices as PancakeSwap continues to play a vital role in token swapping within the broader BNB Chain ecosystem.
According to DeFiLlama data, PancakeSwap is the largest DEX in the BNB Chain ecosystem, with a total value locked (TVL) of $1.6 billion, commanding roughly half of the network’s TVL of around $3.5 billion. Notably, PancakeSwap has remained resilient and continues to evolve, even after the deployment of Uniswap v3 on the BNB Chain, shaking off competition.
In the past 24 hours, PancakeSwap has generated over $815,000 in fees, more than 7.5 times that of Venus, a lending protocol and the second largest in the BNB Chain ecosystem.
Is CAKE Ready For $10?
Notably, the token burn proposal coincides with significant changes at PancakeSwap, including the recent introduction of veCAKE and Voting gauges. The voting for these changes concluded on November 22, with the proposal passing with over 99% community support. As a result, veCAKE holders can now vote on where future CAKE farm emissions will be directed, giving them greater governance influence. Supporters argue that this decision makes the DEX more decentralized and community-oriented.
PancakeSwap plans to burn 300 million CAKE, which has led to a rally in prices. On the weekly chart, CAKE has increased by over 260% from its 2023 lows, reflecting rising demand. Despite this bullish trend, bulls have not yet recovered their losses from this year. A critical resistance level is around $5, and a solid, high-volume break above this line could potentially propel CAKE to around $10 in the coming months.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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