Discovering PancakeSwap: Analysis of CAKE Cryptocurrency and Tokenomics

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5 Apr 2024

Many crypto investors have mixed emotions regarding the Binance Chain after CZ’s departure in November 2023. However, as the bull market evolves, even the Binance ecosystem is gaining some traction. As such, the leading decentralized exchange on BNB Chain – PancakeSwap – is likely to gain momentum as well. After all, despite the 200%-plus increase since October 2023, the CAKE crypto token is still more than 90% below its all-time high (ATH) value. Thus, now is still a good time to take a closer look at this DEX token and determine whether or not you should buy $CAKE crypto.
UPDATED 27TH DECEMBER 2023 AT 17:53

In today’s article, you’ll first have a chance to get properly acquainted with the CAKE crypto project. This is where you’ll learn what PancakeSwap is all about, and how the entire platform has evolved since its beginnings in 2020.
Next, we’ll shift our focus over to the $CAKE token. This is where we’ll have a look at the token’s purpose and use cases. Moreover, we’ll also share with you the CAKE crypto’s tokenomics and discuss how that aspect may impact the token’s price.
However, as altcoin investors/traders, we’re mainly interested in the CAKE price. As such, we’ll go over the coin’s entire price action and outline the key levels of support and resistance. We’ll also check out what the best crypto charting tool – Money Line – has to say about the $CAKE’s price performance.
Furthermore, you’ll learn how to use the power of Moralis Money’s cryptocurrency analysis sites to determine if/when to buy $CAKE crypto. And for those of you who may decide to get a bag of CAKE, we’ll also let you know where you can do that effortlessly.

What is CAKE Crypto?

The “CAKE crypto” term primarily refers to the $CAKE cryptocurrency, which is the native token of the PancakeSwap DEX. And we’ll dive deeper into this crypto coin moving forward. However, many crypto enthusiasts also use the term to refer to PancakeSwap and the entire project behind the CAKE coin.
So, to properly answer the above question, we need to explain what PancakeSwap is.

PancakeSwap – the Project Behind the CAKE Token

PancakeSwap was launched on September 20, 2020. It quickly gained popularity as a decentralized exchange built on the Binance Smart Chain (BSC) (now known as the BNB Smart Chain). Following Uniswap’s example and its protocol, PancakeSwap serves as a non-custodial platform where users get to swap tokens on BNB Chain.
However, given the lower transaction fees on BNB Chain, PancakeSwap provides users with a faster and more cost-effective alternative to decentralized exchanges on other blockchains, such as Ethereum. Though, over time this DEX also added support for other EVM-compatible networks and is now a cross-chain exchange:
Still, the majority of the platform’s trading volume takes place on BNB Chain.
All-in-all, PancakeSwap offers an extensive decentralized finance (DeFi) platform. After all, it allows users to swap various BEP-20 tokens, provide liquidity, and stake tokens to earn rewards in the form of its native token – the $CAKE crypto asset.

How to Use PancakeSwap

If you believe that the BNB ecosystem is likely to gain proper traction in the 2024-2025 bull run, you need to get comfortable with PancakeSwap. As such, make sure to have an EVM-compatible Web3 wallet (e.g., MetaMask) ready. You should also use a reputable fiat gateway or a centralized exchange (CEX) that you trust to get some $BNB. You need the latter to cover the gas fees on the BNB Chain network.
With these prerequisites under your belt, you can access the above-outlined platform, connect your wallet, and explore the PancakeSwap platform.
To swap tokens, you need to select the “Trade” menu option and then “Swap”. However, there are other features you can consider using. If you trust the platform, you can even earn crypto by becoming a liquidity provider. Moreover, you can also stake CAKE, explore the platform’s gaming marketplace, NFT marketplace, and more.
But before using any of PancakeSwap’s features, we highly recommend you explore the project’s documentation:

What is the CAKE Crypto Token?

By this point, you already know that $CAKE is PancakeSwap’s native cryptocurrency. In case you are familiar with Uniswap and its UNI token, you can think of PancakeSwap and CAKE in a very similar manner. After all, just like UNI, CAKE is primarily a governance token. It empowers its holders to have a say in the direction the ecosystem takes. Holders of CAKE can participate in the decision-making process for the platform by voting on proposals.
Aside from being the platform’s governance token, $CAKE is also the utility token of PancakeSwap. After all, users can stake the CAKE crypto in the PancakeSwap liquidity pools to earn more CAKE tokens as rewards.

Tokenomics

CAKE is a BEP-20 token, which is BNB Chain’s equivalent of Ethereum’s ERC20 standard for fungible tokens. This DEX token was launched on the BNB Chain in September 2020 and has since then expanded to other chains. As such, it is now a cross-chain asset.
The token is mintable, meaning that new instances of CAKE are added into circulation regularly. At the time of writing, the rate of these emissions is at 1.36 $CAKE per block.
Moreover, there are currently approximately 266 million CAKE tokens in circulation, while the current total supply is around 386 million $CAKE. Given the token’s current price, the asset’s market cap at the time of writing is approximately $945 million. Furthermore, according to PancakeSwap’s whitepaper, the CAKE token has a maximum total supply of 750 million.
It’s also worth noting that more than a billion CAKE tokens have already been burned (nearly 74 % of the total amount of CAKE that was ever in existence). So, the token’s burning mechanism ensures that CAKE’s inflation is reasonably low (approximately 5% per year).
Here are the current numbers as presented by the PancakeSwap website:
Note: If you wish to buy $CAKE crypto, make sure to explore the details of its emissions and supply control in more detail. You can do that in the above-outlined project’s documentation.

The $CAKE Crypto Price Action

The CAKE token started trading at the end of September 2020, at around $1. However, the asset’s price decreased to as low as $0.19 by November 3 that same year. However, afterward, the price started to increase with the rest of the crypto market. But it wasn’t until mid-January 2021 that $CAKE gained a lot of momentum.
By the end of April 2021, the CAKE price increased by more than 200x from its all-time low (ATL) price of $0.19. This is when the asset set its still valid all-time high (ATH) price of approximately $44.
Of course, the price didn’t move up in a straight line, instead, it experienced several corrections along the way. The largest pullback during that massive rally happened between February 20 and March 1. During those ten days, $CAKE went from $19.2 to $9.3, losing more than 50% of its value.
However, given the overall uptrend momentum, that pullback turned out to be a final decent opportunity to buy $CAKE before it climbed toward the aforementioned ATH:
While the price increase was large and fast, so was the downside action. After all, following the asset’s peak on April 30, the price plummeted down to the $12 region by May 24, 2021. From there, the token offered a nearly 100% relief rally. However, it was rejected at around $21.3 and turned back downward until it found new support just above $11 on July 21, 2021.
Following that local low, many traders started to buy $CAKE crypto, which offered another relief rally. On that occasion, the price reached over $26 again; however, it didn’t have enough momentum to go higher.

$CAKE’s Bear Season – Is the Bottom In?

After that local top on August 28, 2021, CAKE’s price entered a bearish trend. The latter reached its first bottom by June 19, 2022, around $2.6. Next came a consolidation period, during which $CAKE remained mainly in the $3-$5 range.
However, the capitulation phase took place between May and October 2023, with the CAKE cycle bottom coming in on October 18, reaching as low as $1.05. You can see this period very clearly in the daily chart on the logarithmic scale below.
Given the entire crypto market’s performance in 2023 and CAKE’s rally following the aforementioned low in October, we dare to say that the cycle bottom is in. After all, since October 18, the CAKE crypto increased in value by approximately 260%. This puts the token’s price above the pre-capitulation-phase levels.

CAKE Crypto TA and Money Line

You most likely know that there are many technical analysis (TA) tools and indicators to choose from. However, we prefer to use the combination of the very basics on one end and the ultimate crypto indicator on the other. The former refers to charting the key support and resistance levels for the CAKE price:
Looking at the above chart, you can see that by breaking back above the $2.8 level, $CAKE recovered after its capitulation phase. And while there are several minor resistance levels along the way, $4.8-$5.5 marks the next important area.
Moreover, the above chart also includes the token’s trading volume and RSI, both popular indicators. And, given a slightly lower trading volume during the last CAKE’s rally, the asset may be running out of steam. Hence, some sideways momentum could take place next.
However, as per the best trend indicator – Money Line, CAKE is in a clear uptrend on both weekly and daily timeframes:
Note: If you wish to get your hands on the Money Line indicator, make sure to opt in for the Moralis Money Pro or Starter plan.

$CAKE Price Predictions

We want to use this section to warn you about the $CAKE price predictions. After all, many influencers and content creators are offering exact CAKE price targets for 2024 and 2025. However, you need to know that those predictions are pure guesses. As such, most of them, if not all of them, will be wrong and way off.
In fact, we strongly encourage you to avoid all long-term crypto price predictions because they tend to be highly misleading. Instead, you should get comfortable with keeping a close eye on the asset’s live prices and their on-chain momentum. And when it comes to altcoins, including the CAKE crypto, there’s no better place than the Moralis Money token page. The link to CAKE’s page awaits you in the next section.
On those pages, you can find “Price Chart” and “Alpha Metrics” sections that offer invaluable insights. These insights help you determine the asset’s on-chain momentum and even its most likely short-term price targets. This makes Moralis Money token pages one of the best crypto trading tools.

Should I Buy $CAKE Crypto?

We are not financial advisors, so we cannot answer the above question on your behalf. However, by using this article, you should be able to decide if you find $CAKE at all interesting.
For instance, if you believe that the BNB ecosystem can gain proper momentum, then it wouldn’t be surprising if the CAKE token were to reach its ATH levels. In that case, you’d most likely want to buy $CAKE crypto at the current levels.
However, before you take any further action, you ought to DYOR the token and PancakeSwap further. And you can do this like a pro via the Moralis Money PancakeSwap Token ($CAKE) page.
Furthermore, as explained in the previous section, you can find CAKE’s live price and real-time on-chain metrics on that page. So, by combining these insights, you can determine if now’s a good time to buy $CAKE crypto.
As such, make sure to follow the “$CAKE” link above or use the interactive widget below and answer the above question with confidence.

Where to Buy $CAKE Crypto?

Since CAKE has been around since 2020, you can buy it on most major centralized exchanges. However, if you are anything like us, then you believe in decentralization. As such, you prefer buying cryptos in a non-custodial manner. Hence, using PancakeSwap would be a proper path for you. But there’s even a simpler, safer, and cheaper way.
If you took a good look at the above-presented $CAKE page, you might have already noticed the “Buy” button. Well, as you probably intuitively guessed, by clicking that button you can get your bag of CAKE right via Moralis Money. After hitting “Buy”, Moralis Money’s instant crypto swap feature pops up:
This crypto-swapping feature also provides you with simple and easy-to-follow instructions. Essentially, you just need to ensure your wallet is on the BNB Chain network, then connect your wallet, select the token you wish to use to buy $CAKE, enter its amount, and execute the swap. You can see these steps in action in the animation below.

Is CAKE Crypto A Good Investment? On-Chain Data for $CAKE – Key Takeaways

The CAKE token is the native cryptocurrency of the PancakeSwap DEX.
CAKE is primarily a governance token but it can also be used for staking rewards.
The PancakeSwap project and the CAKE cryptocurrency launched in 2020 and the asset had a very impressive 200x-plus rally in early 2021.
The 2022-2023 bear season hit CAKE heavily, pushing the token’s price more than 97% below its ATH.
Since October 18, 2023, the asset increased by more than 250% but is still more than 90% below its ATH.
To determine if/when to buy $CAKE crypto, use the Moralis Money token page for that asset.
If you decide to get a bag of $CAKE, you can do so on that page by hitting the “Buy” button.

Keep in mind that there are many other large-cap altcoins like $CAKE that deserve your attention. However, if you wish to catch those 50x-plus gains, you ought to focus on tokens with lower market caps. Still, it’s very important to respect your risk aversion and explore the altcoin opportunities that suit your preferences.
Luckily, you can find tokens with all sorts of market caps easily with Moralis Money’s core feature – Token Explorer. This ultimate crypto scanner allows you to deploy preset or unique search strategies with just a couple of clicks. As a result, you generate dynamic lists of altcoins with potential in seconds.
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All-in-all, Moralis Money is the best crypto trading tool, with a host of amazing features to help you spot the best altcoin opportunities.
So, check out the video below and get going with this amazing platform today!