PancakeSwap Burns 8.82 Million CAKE Tokens, Equivalent to $17 Million!

Bittime - PancakeSwap has destroyed 8,820,499 CAKE tokens, which is equivalent to approximately 17 million US dollars. This token burn is part of a deflationary strategy to reduce the total supply and increase the value of the CAKE token.

CAKE Token Burn Source 

This token burn comes from several different sources involved in the ecosystem PancakeSwap, such as transaction fees, perpetual contracts, prediction markets, lotteries, NFTs, and gaming. Following are the complete details of the CAKE token burn.

1. AMM V2 Transaction Fees: PancakeSwap destroying 76,000 CAKE originating from transaction fees on Automated Market Maker (AMM) version 2, with a value of around 151 thousand US dollars. This represents a decrease of 14% compared to the previous week.
2. AMM V3 Transaction Fees: A total of 115,000 CAKE was destroyed from AMM version 3 transaction fees, with a value of approximately 228 thousand US dollars. This represents an increase of 62% compared to the previous week.
3. Non-AMM Transaction Fees: PancakeSwap also destroyed 5,900 CAKE originating from non-AMM transaction fees such as perpetual contracts and position management, worth approximately 12 thousand US dollars. This source shows a significant increase of 2187% compared to the previous week.
4. Prediction Market: A total of 71,000 CAKE was destroyed from activity on the prediction market, with a value of approximately 141 thousand US dollars. This represents a decrease of 13% compared to the previous week.
5. Such: PancakeSwap destroyed 24,000 CAKES from such, with a value of approximately 48 thousand US dollars. This represents a decrease of 23% compared to the previous week.
6. NFT: A total of 300 CAKE were destroyed from NFT activity, with a value of approximately 1 thousand US dollars. This represents a decrease of 29% compared to the previous week.
7. Game: PancakeSwap destroyed 2,000 CAKE from gaming activities, worth approximately 3 thousand US dollars. This represents an increase of 24% compared to the previous week.

Impact of CAKE Token Burn  

Burn tokenization is a commonly used strategy in the cryptocurrency ecosystem to reduce the total number of tokens in circulation. By reducing supply, demand for the remaining tokens is expected to increase, which in turn could increase the value of those tokens.

Steps PancakeSwap to destroy more than 8.8 million CAKE this not only helps increase the value of the CAKE token, but also shows their commitment to providing more value to the community and investors.  

DeFi Platform and Token Burn

Steps PancakeSwap This CAKE token crash can also be compared to similar actions taken by other DeFi platforms. 

Many DeFi platforms use token crushing strategies as a way to manage inflation and increase the value of their tokens. 

For example, Binance, one of the world's largest crypto exchange platforms, routinely burns BNB tokens as part of their deflationary program.

By destroying large amounts of tokens periodically, DeFi platforms can create artificial scarcity that can drive up token prices in the market.  

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