PancakeSwap, a prominent decentralized exchange (DEX), just burned 7.15 million CAKE tokens as part of its current burning round. The tokens that were burnt were valued $27 million.
So far, almost 750 million tokens have been burnt. At the time of writing, CAKE’s circulating supply has reduced to 180.65 million. Despite the development, the altcoin’s price did not respond favorably, falling by 1.68%. That might be because the recently burnt tokens constituted just roughly 2% of the overall supply of CAKE. This was a little number in the grand scheme of things.
Coin burning, on the other hand, is one of the most sought after occurrences in the crypto market since it adds deflationary pressure. PancakeSwap has recently generated a lot of buzz due to the forthcoming introduction of its third edition V3 on the BNB chain in April. This development follows the approval of Uniswap V3’s intended deployment on the BNB by its community members.
However, the buzz did not result in increased on-chain trade activity for PancakeSwap. According to Token Terminal statistics, the weekly trading volume decreased by 10%, while the weekly average of daily users decreased considerably. Also, the critical DeFi indicator underperformed. After reaching $4 billion on February 9th, the network’s total value locked (TVL) has dropped by over 15%.
According to Santiment statistics, daily active addresses have dropped by 23% from the weekly high on March 3. The decrease in active addresses reduced the frequency with which CAKE tokens flowed throughout the network. But, if the substantial increase in daily transaction volume in profit is to be believed, things might alter. The potential of larger gains may encourage holders to trade more. Nonetheless, it may result in increased selling pressure in the near run.
The weighted sentiment has also been negative, showing that investors are hesitant to place wagers on CAKE.
