Why is PancakeSwap rallying today?
- PancakeSwap breaks out, reclaiming $2.00 in support as investors return.
- The implementation of the tokenomics 3.0 software upgrade will allow access to staked CAKE and cake.
- PancakeSwap is shifting its focus from a 5% trading fees revenue sharing model to the CAKE token burn mechanism.
- CAKE flashes multiple buy signals in the daily timeframe, with breaks above the 100 and 200-day EMAs signaling recovery to $2.85.
- Profit-taking and the upcoming staking unlock could increase sell-side pressure, weakening CAKE’s bullish momentum.
PancakeSwap (CAKE) breaks the downtrend and surges more than 3% on the day to exchange hands at $2.00 at the time of writing on Monday. The Decentralized exchange (DEX) native token tumbled to $1.52 on April 7 as United States (US) President Donald Trump’s tariff war wreaked havoc on global markets, including crypto.
However, sentiment has improved significantly since then, with Bitcoin (BTC) crossing above $87,500, Ethereum (ETH) sitting firmly above $1,600, and Solana (SOL) in the $140 range at the time of writing. Adding strength to the bullish market wave, PancakeSwap started releasing the “CAKE Tokenomics 3.0” update on Monday, bringing a raft of changes to the network that impact staking and yield farming.
PancakeSwap implements CAKE Tokenomics 3.0
PancakeSwap price moves higher on Monday, buoyed by the much-awaited CAKE tokenomics 3.0 upgrade tailored to foster changes in the platform’s staking, revenue sharing and farm boosting features, among other things.
🥞The official implementation of CAKE Tokenomics 3.0 is now underway. Here's what you need to know about the changes and important dates:
— PancakeSwap (@PancakeSwap) April 21, 2025
Key Milestones:
🔹Retirement of CAKE Staking, veCAKE, Gauges Voting, Revenue Sharing, and Farm Boosting
🔹Voting results from Epoch 37 will… pic.twitter.com/3mj2Hk08BY
According to a blog post on the upgrade, users will have access to staked CAKE and veCAKE. A 1:1 basis for veCAKE to CAKE is expected for investors who staked directly through PancakeSwap. The network explained that “veCAKE is calculated based on the staking duration, so users will be able to redeem the underlying amount of CAKE.” Network users have up to six months to redeem their staked CAKE and veCAKE, from Wednesday until October 23.
As per the blog post, the upgrade will slowly retire farm boosting from position managers, syrup pools, and farming activities, starting Thursday and ending May 7. Note that rewards from yield boosting will keep accruing up to this date.
PancakeSwap will discontinue a 5% revenue share model in v3 pools on revenue sharing, redirecting the funds to the CAKE burn mechanism. This will bump the pool token burn rate from 10% to 15%. Users can find more details about the upgrades, including CAKE emission reduction, CAKE pool delegation, and the Dune burn dashboard, in the blog post, which includes actions they must take.
PancakeSwap renews bullish outlook
PancakeSwap’s price settles above the 50-day Exponential Moving Average (EMA) indicator around $2.00 at the time of writing, riding on improving investor sentiment and the protocol upgrade. A buy signal from the Moving Average Convergence Divergence (MACD) indicator encourages buyers to buy CAKE.
The green histograms and a potential crossing into the positive region could further cement the bulls’ presence. Moreover, the Relative Strength Index (RSI) indicator’s position above the midline and pointing upwards indicates that the trend leans more bullish than bearish.
CAKE/USDT daily chart
Traders would look for a daily close above the 50-day EMA to confirm market stability. If investors delay profit-taking activities, CAKE could capitalize on the current positive sentiment and bullish momentum to make headway above the 100-day EMA at $2.08, the 200-day EMA at $2.16, and the descending trendline before breaking out toward $2.85, a significant resistance in the first quarter.
On the flip side, failing to sustain the price above the $2.00 immediate support would trigger immense volatility as traders rush to close positions, anticipating CAKE’s price to fall to the most recent support at $1.80 before sliding to $1.52, its lowest point in April.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
