PancakeSwap Token Burn Boosts Price
Following the announcement of burning over 9 million CAKE tokens, PancakeSwap witnessed a slight rise in the price of its native token. The price of CAKE surged by 2.3%, helping buyers recover from earlier lows of $1.64. At the time of writing, CAKE was trading around $1.72, with a 24-hour trading volume spiking by 37% to $21.3 million.
Latest Token Burn Details
PancakeSwap’s recent token burn involved permanently removing 9,171,676 CAKE tokens from circulation, amounting to $15 million. This reduction brings the circulating supply of CAKE down to 264,190,448 tokens, accounting for 58.71% of the total supply. The community has been actively supporting these regular token burns to decrease the overall supply.
Cryptocurrency Market Impact
Token burning mechanisms, like the one implemented by PancakeSwap, are increasingly popular across crypto projects to reduce circulating supply and create scarcity. This scarcity is perceived to have a positive effect on the token’s price in the market. PancakeSwap’s strategic decision to cut its CAKE supply by 300 million tokens has been well received, with the total supply now standing at 383,118,820 CAKE tokens.
