CAKE Set For a Breakout As PancakeSwap Announces $25 Mln Burn

PancakeSwap, a decentralized exchange platform on the Binance Smart Chain, announced a token burn of over 8.9 million CAKE tokens, collected from trading fees across Automated Market Makers (AMM) Version 2 and 3. The $25 million token burn likely helped the CAKE price recover from recent losses. The DeFi token, which was initially valued at $2.808, rose nearly 3% on the day after the announcement.

The DEX burned 8,924,466 CAKE tokens worth nearly $25 million. PancakeSwap had collected 119,000 CAKE worth $332,000 as trading fees for its AMM Version 2 and 160,000 CAKE worth $448,000 for its AMM Version 3. The DEX is integrated with market makers on Ethereum and Binance Smart Chain to help traders execute their trades at a relatively low cost. The DEX recently announced plans to redirect CAKE emissions from farming pools to bribe locker protocols and boost the liquidity of the DeFi token for users, which has no impact on CAKE supply since it simply redirects emissions to liquidity pools.