- PancakeSwap now tracks net CAKE burn, with 339K CAKE burned on March 24, reducing supply by 0.12%, according to Satoshi Club.
- CAKE trades at $2.56, with support at $2.08. A golden cross could signal a bullish trend, but a drop below support may reverse momentum.
- Trading volume surged between March 19-20, aligning with price rebounds. Daily active addresses at 10.3K indicate steady user engagement.
Binance founder and former CEO Changpeng Zhao (CZ) acknowledged PancakeSwap’s latest transparency measure in tracking net CAKE burn. The decentralized exchange (DEX) now reports how much CAKE is burned compared to how much is minted.
This shift provides a clearer picture of the asset’s actual supply changes. According to Satoshi Club, the most recent update on March 24 recorded approximately 339,000 CAKE burned, reducing the total supply by 0.12%. CZ responded to this, stating,
“Always good to see deflation.”
PancakeSwap’s Supply Adjustments and Market Impact
This latest move by PancakeSwap aligns with its broader deflationary mechanism. The exchange continues to attract liquidity due to its low-cost and efficient transactions. The 3.8 million CAKE allocated to the Ecosystem Growth Fund is excluded from net burn calculations unless those tokens enter circulation.
A shrinking supply could influence market sentiment and potential price action. With increasing adoption and upcoming upgrades on the BNB Chain, PancakeSwap is positioned as a key player in decentralized finance (DeFi). These developments may encourage greater institutional interest and increased trading volumes.
CAKE Price Trends and Technical Indicators
At press time, CAKE was trading at $2.56, facing resistance at this level while maintaining support at $2.08.
Technical indicators suggest a short-term bullish trend, with the 50-day moving average at $2.466. This level indicates strengthening momentum in the near term. The 200-day MA, at $1.82 million, suggests broader market trends and long-term holder behavior.
If the 50-day MA crosses above the 200-day MA, a golden cross pattern could emerge, often seen as a bullish indicator. However, failure to maintain price levels above $2.08 could lead to a pullback toward the next support zone at $1.70-$1.75.
Market Activity and Future Price Movement
Trading volume has had substantial spikes, particularly between March 19-20, correlating with price rebounds. Increased buying activity during this period suggests increased activity, possibly from institutional investors or large holders. Daily active addresses are around 10,300, indicating steady user engagement.
If this metric continues rising, it could further support bullish market sentiment. Additionally, the total number of CAKE holders has reached approximately 1.82 million, indicating long-term confidence in the asset.
If CAKE surpasses $2.56, the next targets could range between $3.00 and $3.60. However, a drop below $2.08 could shift momentum toward bearish level. Monitoring volume trends and active address data for further signals on price direction is essential.
