CAKE’s latest burn stats bookend countdown to V3 deployment
- To date, more than 750 million CAKE tokens have been burned
- Weekly trading volume on PancakeSwap saw a 10% drop
As part of its latest round of burning, popular decentralized exchange (DEX) PancakeSwap has retired approximately 7.15 million CAKE tokens. The burned tokens were worth $27 million.
🔥 7,153,999 $CAKE just burned – that’s $27 million!
💰 Trading Fees (Swap and Perpetual): 255,000 CAKE ($958,000) +80%
🔮 Forecast: 84,000 CAKES ($315,000) +31%
🎟️ Lottery & Pottery: 35,000 CAKES ($132,000) +44%
🔒 NFT Market, Profile & Factory: 560 CAKE ($2k) +4% pic.twitter.com/PFeMFxIN9c— PancakeSwap 🥞 #Multichain (@PancakeSwap) March 6, 2023
To date, more than 750 million tokens have been burned. In fact, CAKE’s circulating supply was down to 180.65 million at the time of writing.
Despite the performance, however, the altcoin’s price did not react positively, falling 1.68%. This could be because the recently burned tokens accounted for only about 2% of the total CAKE supply. From a macroeconomic point of view, this was not a very significant number.
However, as they add deflationary pressure, coin burning is one of the most sought-after events in the crypto space.
Read PancakeSwaps [CAKE] Price prediction 2023-2024
Trading volume, TVL decreases
PancakeSwap has managed to generate immense hype lately for the upcoming launch of its third iteration V3 on the BNB chain in April. This development comes after the planned deployment of Uniswap V3 on the BNB received the green light from its community members.
Unfortunately, the hype failed to boost on-chain trading activity for PancakeSwap. Weekly trading volume saw a 10% drop, while weekly average daily users also fell slightly, data from Token Terminal showed.
Source: Token Terminal
In addition, the important DeFi indicator also disappointed. The total value locked (TVL) on the network has declined 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 is slowing down
According to data from Santiment, daily active addresses are down 23% since hitting the weekly high on March 3. The decrease in the number of active addresses reduced the frequency with which CAKE tokens moved across the network.
However, this could change if the strong increase in daily transaction volume in profit is to be believed. The prospect of earning higher profits can prompt holders to make more transactions. In the short term, however, this could lead to increased selling pressure.
Weighted sentiment was also in negative territory, suggesting that investors are not very keen on betting on CAKE.
Source: Santiment