BNB Chain DEX PancakeSwap Burns 26,980,468 CAKE Valued $62M+ But CAKE Falls 13%

PancakeSwap has burned over $62 million in $CAKE this month, yet the token’s price remains on a negative trend.

In a recent tweet, the popular decentralized exchange (DEX) PancakeSwap disclosed a significant milestone in its ecosystem.

Specifically, the BNB Chain DEX revealed that a whopping 9,000,841 $CAKE tokens, equivalent to roughly $19 million, have been wiped out of circulation in its latest burn schedule.

🔥 9,000,841 $CAKE just burned – that’s $19M!

💰 Trading fees (AMM V2): 187k $CAKE ($397k) +40%
💰 Trading fees (AMM V3): 102k $CAKE ($217k) +56%
💰 Trading fees (Non-AMM like Perpetual, Position manager etc): 17.5k $CAKE ($37k) +1115%
🔮 Prediction: 46k $CAKE ($98k) +24%
🎟️ Lottery… pic.twitter.com/wcTg4TxJJS

— PancakeSwap🥞Everyone's Favorite DEX (@PancakeSwap) December 18, 2023

Note that $CAKE is the native token of the DEX platform. PancakeSwap noted that the over nine million $CAKE were sent to a non-recoverable address, effectively burning the tokens. This burn event significantly reduces the overall supply of $CAKE, potentially contributing to its price appreciation in the long run.

Contributors of the 9M+ $CAKE Moved to Dead Address

Furthermore, the tweet detailed the breakdown of the burned $CAKE, highlighting the sources that contributed to the endeavor.

Trading fees accrued from the automated market maker (AMM) version 2 had the largest contributing share. Specifically, AMM V2 burned $CAKE tokens worth $397,000, representing a 40% increase from the amount recorded last week.

Trading fees from PancakeSwap’s AMM V3 followed closely, contributing $217k to burning 102,000 $CAKE tokens. This figure represents a more substantial 56% from the previous week’s burn schedule.

Meanwhile, non-AMM fees like those from perpetual and position manager contracts saw a staggering 1,115% surge in their one-week contribution to burning $CAKE.

Other sources of burned $CAKE included the prediction market, lottery and pottery activities, and the $NFT marketplace. While prediction fees saw a healthy 24% increase, lottery and pottery contributions dipped slightly by 7%. $NFT fees declined by 13%, suggesting a softening demand in the PancakeSwap $NFT marketplace.

$62 Million Burned This Month

In the previous week’s $CAKE burn announcement, PancakeSwap disclosed incinerating 9,170,886 tokens. At the time, the market value of the eliminated coins was approximately $22 million.

Similarly, on December 4, the DEX platform announced burning 8,808,741 $CAKE, equivalent to $21,000,000. Notably, this higher dollar value compared to the figures recorded from more recent burn schedules was based on $CAKE’s loftier market price.

Cumulatively, PancakeSwap has eliminated 26,980,468 $CAKE tokens worth over $62 million so far this month.

Meanwhile, the ongoing burning of $CAKE seems to have had minimal positive effects on the price of digital assets. According to CoinMarketCap, $CAKE has experienced a 13% decline in the last 30 days. Currently priced at $2.23, this marks a staggering 94.96% decrease from its 2021 all-time high of $44.18.