DeFi platform PancakeSwap burns over 8.8 M CAKE coins in a strategic move

PancakeSwap, a leading decentralized finance (DeFi) network, made a bullish move to boost the project’s growth.

The platform has confirmed a massive token burn, destroying 8,820,499 CAKE coins (worth about $17 million) to reduce the asset’s supply.

PancakeSwap’s recent developments

Token burns reduce the asset’s overall supply, triggering scarcity and bolstering the price amid stable demand.

PancakeSwap has removed over 8.8 million tokens from circulation. Moreover, the project revealed various significant developments.

Meanwhile, revenue metrics from several activities highlight varying performances in different segments.

Automated Market Maker version 2 saw transaction fees reduce by 14% over the past week to $151,000 (76,000 CAKE tokens).

Contrarily, the latest AMM v3 displayed remarkable performance, with trading fees jumping 62% in the past week to $228,000 (115,000 CAKE coins).

Meanwhile, non-AMM trading undertakings, including position management and perpetual contracts, experienced significant surges.

The metrics generated $12,000 in fees (5,900 CAKE), representing a staggering 2,187% surge over the last seven days.

PancakeSwap’s prediction marketplace (which allows users to bet on the results of different events) generated fees worth $141,000 (71,00 CAKE).

Nonetheless, that represented a 13% weekly slide, suggesting declined user participation.

Moreover, the platform’s lottery recorded a 23% 7-day dip, with transaction fees of $48,000 (24,000 CAKE).

PancakeSwap Gaming & NFT markets

The DeFi platform also saw a dip in NFT-centered undertakings. The non-fungible token sector’s fees plunged 29% in the past week to $1,000 (300 CAKE).

The NFT sector has struggled with faded activity in 2024, possibly amid shifts to narratives such as meme cryptos and RWA tokenization.

Meanwhile, the gaming sector reflected optimism, accruing fees worth $3,000 (2,000 CAKE tokens) – an impressive 24% 1-week increase.

CAKE price outlook

The abovementioned stats reveal a bullish stance for the altcoin. CAKE gained 3.70% in the previous 24 hours to hover near $2 during this publication.

CAKE 1D Chart on Coinmarketcap

PancakeSwap trades at $1.98, and the 25% increase in daily trading volume suggests continued upticks.

Ongoing broad market recovery also boosted CAKE’s recent uptick.

Bitcoin (BTC) gained about 4% within the past day, triggering bullish actions in the altcoin sector.

Continued crypto market recovery, ongoing token burn initiatives, and solid DeFi revival could propel CAKE price toward $5 by 2024 end.

However, faded interest in decentralized finance, with asset classes such as memes and RWA in the limelight, can hinder CAKE’s growth in the $2.40 – $3.50 range.

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