PancakeSwaps deflationary mechanisms are in full swing. A tweet from the official PancakeSwap Twitter account on May 3rd stated that the exchange bought $7.8M of $CAKE back from the market in trading and prediction fees.
$CAKE tokens power the PancakeSwap ecosystem, and are earned through yield farming or staking in syrup pools. This means users can farm $CAKE with liquidity or stake $CAKE to receive even more $CAKE. Following the launch of PancakeSwap v2, the AMM asked its community of members to vote on a number of proposals regarding the future tokenomics of $CAKE.
From a total of four options with varying incentives and rewards the community voted overwhelmingly in favour of “the big burn” token option which captured over 66% support.
Bullish on $CAKE
The ongoing “big burn” is providing yet another reason for investors to be bullish on $CAKE. In February $CAKE was trading at $6, up 1,200% year-to-date. At that time CoinGape predicted that the token could close out the year at $15.
Coinpedia made the far more dramatic prediction of $60 to $80 price for $CAKE by the end of the year. In March, FXStreet predicted that PancakeSwap’s token could hit $21.70. At the time $CAKE token was facing some resistance around the $12-13 mark. By April however $CAKE was already chasing that $20 price point.
Looking at chart data from CoinGecko, $CAKE has performed well in April, making significant gains and breaking through the $20 mark on April 8th. On the day of the “big burn” announcement (April 22nd) $CAKE was trading at around $26, but went on to reach an all time high of $43.96 on April 30th.
$CAKE has slightly retracted to the $37 mark at time of press, but continues to perform well. Analysts remain bullish on the token, but if anything, they have historically underestimated its potential. Taking these factors into consideration, if the trend for growing burn volume continues there remains good reason to be bullish on the future price of PancakeSwap’s native token.
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.
BSC NEWS is a private news network. All posts posted by this user belong 100% to bsc.news All rights are reserved to BSC NEWS for more information about BSC NEWS contact BSC NEWS HERE.