As a seasoned researcher in the dynamic world of blockchain and cryptocurrencies, I have witnessed the rise and fall of numerous digital assets. The recent token burn by PancakeSwap has caught my attention due to its potential implications on the price action of CAKE.
As a crypto investor, I’ve noticed an uptick in the value of my PancakeSwap holdings recently. This boost can be attributed to the exciting news that PancakeSwap, the multi-chain DEX, has incinerated over 9 million of its native tokens.
After the announcement was made, the value of PancakeSwap (CAKE) increased by approximately 2.3%. This recovery brought buyers back from a low of $1.64 earlier in the day. At the moment of writing, CAKE was being traded at around $1.72. The volume of trades over the past 24 hours surged more than 37%, reaching over $21.3 million.
PancakeSwap’s token burn
On September 2nd, PancakeSwap (CAKE) announced on their platform that they had permanently removed 9,171,676 CAKE tokens from circulation through a recent token burn. As per information disclosed by the decentralized exchange, this burn was equivalent to approximately $15 million worth of CAKE.
🔥 Nearly $9.17 million worth of CAKE tokens were destroyed, which equates to a whopping $15 million!— PancakeSwap is turning 4 #Pancake4ever (@PancakeSwap) September 2, 2024
The most recent token destruction event for PancakeSwap has decreased the available amount of CAKE tokens to approximately 264 million. This amount represents about 58.71% of the total supply and is part of an ongoing effort by the community to minimize the circulating supply through periodic token burns.
In various cryptocurrency markets, projects use token burning strategies to decrease the number of their native tokens in circulation. This move aims to establish scarcity for the specific digital asset, which is believed to positively influence its price due to increased demand.
In December 2023, PancakeSwap put forth a significant suggestion regarding the CAKE token’s economy. This proposal aimed to seek the community’s approval on a potential reduction in the number of CAKE tokens available by 300 million. If approved, this would lower the maximum supply from 750 million tokens to 450 million tokens.
The motion was approved, and at present, the entire circulation of PancakeSwap consists of approximately 383 million and 118 thousand CAKE tokens. However, its maximum issuance is capped at an impressive 450 million tokens.
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2024-09-02 19:04