PancakeSwap burned up to $109 million

PancakeSwap, a popular decentralized exchange (DEX), began its weekly burn program in early 2023. PancakeSwap burned up to $109 million of its native $CAKE token during the fourth week of the year.

PancakeSwap’s burn program

The number one DEX on the BNB Chain’s purpose is to resist token inflationary pressures.

PancakeSwap, which has long dominated the BNB chain, has devised a burn program for this purpose. The decentralized exchange (DEX) has deleted around 28 million $CAKE tokens as of 2023; given the current value of the native currency, the price converted to dollars is approximately $109 million.

A massive figure indicating the importance of the exchange’s anti-inflationary policy, followed by CryptEye’s $CAKE burn tracker.

According to CoinMarketCap, the price of PancakeSwap’s native token has grown roughly 23% since January 1, riding the cryptocurrency’s recovery period. PancakeSwap is currently priced at $4.1, a far cry from its peak of almost $42 in May 2021.

However, $CAKE, like other cryptocurrencies, experienced a hard patch in 2022, and the token’s price has been substantially influenced by recent industry issues.

However, the concept of the decentralized exchange appears to be working; it is uncertain whether the burn will continue, but given the positive reaction, we cannot help but anticipate further weekly burns.

Furthermore, the decentralized protocol has recently been very beneficial to its user population. PancakeSwap is assisting them in making the most of their crypto assets through trading, yield farming, and NFTs.

PancakeSwap has been verified as the main DEX on the BNB Chain, thanks in part to its large trade volumes.

$CAKE burns in the past

The decentralized exchange also attempted to launch a burn program in June of last year, erasing almost 7 million CAKE tokens worth $22 million. The token was nearly half its current value. PancakeSwap decided to launch the burn protocol to order to boost deflationary efforts and seek a price hike.

The inventors of PancakeSwap predicted a $CAKE reduction in net emissions by commencing a burning procedure.

As a result, the native token became “neutral,” or deflationary. The burning policy of PancakeSwap may be seen in the company’s whitepaper.

PancakeSwap proposed increasing the allotment of buybacks and burnings to 0.0575% on June 13 to further deepen its deflationary policies.

The Protocol indicated that with an allocation of 0.0500% at the time, the additional 0.0075% would be removed from its treasury allocation, reducing the allocation of the CAKE trading charge entering the treasury from 0.03% to 0.0225%.

It is evident that PancakeSwap supports the cryptocurrency burn. The decentralized exchange platform surely promotes this “anti-inflationary” option.

Today, it is executing a weekly strategy to burn its native $CAKE coin, smashing all personal records on tokens destroyed. It had already attempted the same thing in 2022, with similar outcomes and returns.

They had also discussed this tactic in 2021, when its prices were at an all-time high, in an event dubbed “The Big Burn” by the platform itself.

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