Revealed! PancakeSwap Plans to Cut CAKE Token Supply, What will be the Impact?
PancakeSwap, one of the most popular decentralized exchanges (DEXs), recently took the market by storm with plans to cut the supply of CAKE tokens. With the token price currently sitting at $3.58, the proposal to cut the supply from 750 million to 450 million tokens received overwhelming support from the community. What will happen next and how will this affect the future of CAKE?
Proposal for Supply Cut
PancakeSwap announced an ambitious plan to reduce the maximum supply of CAKE tokens. This proposal is expected to strengthen the token's position in the market by reducing the maximum amount from 750 million to 450 million. The voting that began on December 28 received rave reviews, with 95% of the votes in favor of this change. This supply cut is considered a strategic move to achieve the growth targets that have been set. With a lower supply, PancakeSwap hopes to send a clear signal of their change in strategy from a hyperinflationary tokenomics model. If approved, these changes will take effect on January 4, 2024, marking a new era for the CAKE ecosystem.
Market Reaction and the Price of CAKE
Source: U Today
Since the announcement of the supply cut proposal, the price of the CAKE token has increased significantly. With the opening of the voting panel, the token price continued to creep up towards the $4 mark. At the time of writing, the CAKE token is trading at $3.96, representing a 9.01% surge in the last 24 hours. In the past month, CAKE's price surged by over 77%, with weekly gains reaching over 55% thanks to the supply cut proposal. CAKE's market capitalization stood at $1.05 billion, an increase of 9.66%, although 24-hour trading volume fell by 24.14% to $317 million. The weekly token burn conducted by the PancakeSwap team also contributed to this positive trend. Conclusion PancakeSwap's bold move to reduce the supply of CAKE tokens has received a positive response from the crypto community and market. With strong support and a sustainable token burn plan, the future of CAKE looks bright. Those of you who are investors or crypto market watchers may want to keep an eye on the further developments of PancakeSwap and its impact on the crypto ecosystem as a whole.
