The Binance Smart Chain project burned $72.3 million worth of .

PancakeSwap’s CAKE token has seen a surge after the exchange completed its weekly token burn, reducing the supply of tokens by 5.3 million. It jumped 11% before cooling off early Tuesday.

CAKE Climbs Following Token Burn

CAKE looks to be following other DeFi projects putting in double-figure gains this week.

The Binance Smart Chain token briefly rose 11% following a burn event Monday. As well as burning 5.3 million CAKE tokens, PancakeSwap also bought back $1.7 million worth of tokens from the market.

Tweet

Tweet

PancakeSwap schedules token burns weekly as part of its deflationary mechanics. The exchange estimates that approximately 530,000 new tokens are distributed every day through liquidity farming and staking pools. In order to stop the supply outstripping the demand, the exchange burns small amounts of tokens when users trade or harvest yield on the platform. PancakeSwap conducts the token burn manually every Monday.

Crypto projects often burn tokens to reduce the circulating supply. Binance burns tokens quarterly, which has helped the coin surge in the past.

CAKE reached highs of $47.68 in April when the exchange was at the peak of its popularity. At the time, Binance Smart Chain usage surged as traders and yield farmers began to look for alternative networks beyond . With other DeFi projects now beginning to rise in value, CAKE holders will be hoping that the token can continue its upward trend.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

×