Fri. Feb 23rd, 2024

PancakeSwap’s CAKE Price Is Going Crazy. The Reason Is The New Plan About The Max Token Supply

PancakeSwap (CAKE) proposal to reduce its supply

✍️ 27 December, 2023 – 16:11 👤 Editor: Jakub Motyka

PancakeSwap, the decentralized exchange (DEX) platform, recently unveiled a proposal to significantly reduce the total supply of its native token, CAKE, from 750 million to 450 million.

This decision, which aims to shift CAKE towards a deflationary model, has sparked a notable increase in the token’s value, alongside varied predictions for its future price.

The Supply Reduction Proposal For PancakeSwap (CAKE)

PancakeSwap‘s proposal to reduce CAKE’s total supply by over 300 million comes after months of consistent deflation through various token burns. This move is part of the platform’s broader strategy to transition CAKE to what it calls the “Ultrasound Cake” model.

The rationale behind the proposal includes precise estimates of incentives for growth, moving away from a hyperinflationary approach, and ensuring flexibility for future expansion.

The current circulating supply of CAKE is over 388 million, and the reduction is expected to help the token gain market share across all chains while sustaining the veCAKE model.

Following this announcement, CAKE’s price surged by 23%, a positive sign from the investor community​​. As of now, the price of CAKE is $2.54. PancakeSwap currently holds the #87 position in terms of market capitalization in the cryptocurrency market, with a live market cap of $669,049,541. The 24-hour trading volume for CAKE stands at $237,166,506, indicating a significant 246.70% increase.

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Jakub Motyka is an editor and cryptocurrency expert with an outstanding professional profile in the field of digital finance and blockchain technology. His career includes extensive experience writing and editing content related to the world of cryptocurrencies, covering a wide range of topics from technical and market analysis to technological developments and emerging trends in the industry.
Jakub Motyka
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Jakub Motyka

By Jakub Motyka

Jakub Motyka is an editor and cryptocurrency expert with an outstanding professional profile in the field of digital finance and blockchain technology. His career includes extensive experience writing and editing content related to the world of cryptocurrencies, covering a wide range of topics from technical and market analysis to technological developments and emerging trends in the industry.

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