HomeCryptoPrice analysis for the crypto project PancakeSwap (CAKE)

Price analysis for the crypto project PancakeSwap (CAKE)

During the past year, in the crypto sector, PancakeSwap (CAKE) has significantly revolutionized its growth strategy, emissions, and tokenomics. 

Starting from the improvement of “CAKE Tokenomics v2.5” to the recent launch of the “veCAKE Gauges” system, the CAKE token is in a favorable position to pursue further growth in all its implementations.

The anti-inflation strategy for PancakeSwap’s crypto (CAKE)

Now that CAKE has been experiencing a steady deflation for several months and is focusing on accelerating its path towards an “ultrasound CAKE“, this proposal aims to reduce the total supply of CAKE tokens to a maximum of 450 million.

With a current circulating supply of 388 million CAKE, the “Kitchen” believes that this new and lower limit will be sufficient to gain market share across all chains and support the veCAKE model.

The proposal for reducing the supply of CAKE

This forum post on Discourse is a place to discuss this proposal before publishing it for voting. The rationale behind this proposal is based on several strong points:

  • Community certainty on future token cake supply: since the launch of PancakeSwap in 2021, to ensure sufficient incentives to kickstart the ecosystem. After almost 3 years of development, we now have more accurate estimates of the incentives needed to achieve our growth goals.
  • accelerate the path to ultrasound cake: total supply is an important metric to understand the impact of token burns and future emissions. Lowering this number is a critical step towards achieving ultrasound CAKE and sending a clear signal of PancakeSwap’s pivot from a hyperinflationary tokenomics model.
  • Ensure sufficient flexibility for growth: 450 million CAKE is a new reasonable limit to implement to ensure sufficient supply for future growth (e.g., gaining market share on Ethereum, Ethereum L2, and new initiatives like position managers).

Adjustment details

With the above in mind, we propose the following adjustments to the total supply of CAKE:

  • Total Current Supply: 750,000,000 CAKE
  • Total Future Supply: 450,000,000 CAKE
  • Decrease in Total CAKE Supply: -300,000,000 CAKE
  • Steps for Implementation: Decrease the maximum limit on token supply accordingly.

Community resources and feedback

The “Kitchen” evaluates all community feedback and will make every effort to incorporate any suggestions before making this proposal active. Among the available resources are:

Price analysis for the crypto project PancakeSwap (CAKE) 

The chart shows the daily closing price of the asset from November 28, 2023, to December 28, 2023. During this period, a positive trend in the closing price is observed. Starting with a closing price of $2.24 on November 28, the asset has shown sustained growth, reaching $3.58 on December 27, the last day with available data. 

This constant increase suggests a growing interest and confidence from investors in this asset.

The upward trend may have been influenced by a variety of external factors, such as positive news related to the market, specific favorable developments of the asset, or changes in the general economic context. 

It is important to note that, although the trend of a month shows an increase, markets are volatile and subject to rapid changes due to various influencers. Therefore, investors must remain vigilant and consider a variety of factors when making investment decisions.