PancakeSwap is considering a reduction in the supply of its CAKE tokens to 450 million, leading to a notable 20% price surge. This move has stirred speculation among market observers, prompting discussions about the potential impact on the cryptocurrency’s future performance.
Over the past year, PanCakeSwap (CAKE), a cryptocurrency built on the Binance Smart Chain, has experienced a significant decline in value, losing more than 23%. This downward trend has raised concerns among investors and within the PanCakeSwap ecosystem.
In response, PanCakeSwap has unveiled a proposal aimed at decreasing the total supply of CAKE tokens from 750 million to 450 million. The goal is to stimulate a rise in prices and pave the way for what they term the “ultrasound CAKE.” This proposal signals an effort to address the challenges posed by the recent decline in CAKE’s value.
PanCakeSwap’s CAKE Supply Adjustment: Recovery Move
PanCakeSwap (CAKE) is proposing a reduction in its current token supply from around 388 million to 450 million, allowing for the addition of only 62 million new coins in the future. This initiative has garnered support from the CAKE community, anticipating a significant recovery for the cryptocurrency that has experienced a substantial decline since its all-time high of $43.96 in April 2021. With CAKE currently trading at over $2.50, the move to limit the total token supply is seen as a potential beneficial strategy.
PanCakeSwap has also reevaluated incentives for ecosystem growth after nearly three years of development, aiming for more accurate estimates. The community believes that the proposed reduction in token supply aligns with the overall growth objectives of the ecosystem.
The concept of “ultrasound CAKE” involves a crucial step of lowering the total token supply, signaling PanCakeSwap’s intent to transition from a hyperinflationary tokenomics model. The ecosystem sees the revised CAKE total supply of 450 million coins as a reasonable measure, ensuring ample flexibility for sustained growth and development.
PanCakeSwap Price Surges 20% Following Supply Adjustment
In response to PanCakeSwap’s recent announcement of a proposed token supply adjustment, the price of CAKE has surged, experiencing a remarkable 20% gain in the past 24 hours. As of Thursday, December 21, PancakeSwap was trading at $2.61, reflecting a notable 19.09% increase.
This surge in price was accompanied by a substantial uptick in the 24-hour trade volume, soaring by 179.65% and reaching $197.29 million. Concurrently, the CAKE market cap witnessed an 18.33% gain, totaling $683.84 million. Despite the recent surge, the cryptocurrency has encountered a 1.90% loss in the past month. Nevertheless, it managed to achieve a positive growth of 3.66% in the last seven days.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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