Decentralized exchange (DEX) PancakeSwap announced today the completion of its latest token burn. On-chain data shows that over 8.9 million CAKE tokens (worth $28 million) were burnt. On the other hand, CAKE’s price performance has experienced positive uptrends over the past few weeks.

8,908,216 $CAKE just burned – that’s $28M!

Trading fees (AMM V2): 118k CAKE ($370k) +103% Trading fees (AMM V3): 97k CAKE ($305k) +51% Trading fees (Non-AMM like Perpetual, Position manager etc): 0.5k CAKE ($2k) -11% Prediction: 42k CAKE ($132k) +1% Lottery:… pic.twitter.com/QKg0qqlapP

— PancakeSwapEveryone’s Favorite DEX (@PancakeSwap) February 26, 2024

Token burns involve permanently removing a specific number of crypto assets from the circulating supply, reducing the available supply. The process is achieved by sending the tokens to a wallet address with unknown private keys. Theoretically, the mechanism is expected to bolster token scarcity and increase its price. CAKE, BNB, and ETH are examples of cryptocurrencies that adopt a burn mechanism.

$28M in CAKE Gets Burnt

The burnt tokens were derived from several services offered within the PancakeSwap ecosystem. They include trading fees ($677,000), prediction ($132,000), non-fungible tokens ($1,000), and games ($8,000).

PancakeSwap conducts these burns occur weekly. Last week, the DEX burned nearly 9 million CAKE tokens, worth $25 million at the time. Coinfomania has covered past burn schedules from the DeFi protocol, such as an 8.6 million tokens burn in October 2023.

PancakeSwap’s weekly token-burning mechanism is part of the project’s moves to bolster its ecosystem. Recently, the leading DEX on the BNB Chain has taken several actions to upscale its overall performance.

In late December 2023, the protocol proposed to its community a slash of its total supply from 750 million CAKE tokens to 450 million CAKE tokens. The project noted that this would be a shift from a hyperinflationary token model for CAKE. Following news of the proposal, trading volume within the ecosystem soared by a whopping 157%.

CAKE Up Over 22% MTD

CAKE’s value has seen impressive growth within a month-to-date (MTD) timeframe. Flourishing from BNB Chain’s growth and BNB’s price uptrend, CAKE has seen more than a 22% increase within the past month. At the time of writing, CAKE traded at $3.12.

Source: CoinStats

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