PancakeSwap price surges as DEX burns $35 million CAKE tokens

PancakeSwap DEX burned over 8.7 million CAKE tokens worth $35 million on Monday.
The decentralized exchange burns trading fees collected across V3 and V4, prediction market, lottery, NFTs and games.
CAKE price climbed nearly 3% on Monday to $4.039.

PancakeSwap (CAKE) announced a burn of 8,703,247 CAKE on Monday, pulling $35 million worth of DeFi tokens from circulation. The DEX’s move catalyzed gains in the asset. A key announcement by PancakeSwap regarding a collaboration with Stryke is likely another catalyst driving gains in the DEX’s native token CAKE.

PancakeSwap burns massive amounts of CAKE, pushes price higher

CAKE price added nearly 3% to its value on Monday. There are two key events that likely catalyzed the rally in the DeFi token. The first is the $35 million CAKE token burn by the DEX. PancakeSwap burned the fees collected across V3, V4, NFTs, games, Automated Market Makers (AMM) and the prediction market.

The DEX announced the token burn in an official tweet on X.

8,703,247 $CAKE just burned - that’s $35M!

Trading fees (AMM V2): 115k CAKE ($465k) -35%
Trading fees (AMM V3): 99k CAKE ($400k) -45%
Trading fees (Non-AMM like Perpetual, Position manager etc): 14.8k CAKE ($60k) +3520%
Prediction: 40k CAKE ($160k) +4%
️ Lottery:… pic.twitter.com/8S7RIue3Hn
— PancakeSwap v4 (@PancakeSwap) April 8, 2024

The other catalyst is PancakeSwap’s introduction of CLAMM Options Trading, in collaboration with Stryke, a decentralized options exchange. PancakeSwap users can trade options, build on-chain options liquidity, earn premiums and swap fees on Arbitrum.

⚡️Introducing CLAMM Options Trading on PancakeSwap in Collaboration with @stryke_xyz

You can now trade options, build on-chain options liquidity, earn premiums, and earn swap fees on @arbitrum PancakeSwap https://t.co/YP1mfEVEh4 https://t.co/JrbJWPgZd7
— PancakeSwap v4 (@PancakeSwap) April 8, 2024

CAKE price is $4.039 at the time of writing. The DeFi token wiped out nearly 13% of its value in the past seven days; the gains on Monday could help CAKE begin its recovery.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram