Giant 8.5 Million Token Burn from This Altcoin: Here’s the Price’s Reaction to This Development!

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Popular altcoin PancakeSwap In a significant development, (CAKE) announced that it burned another 8.5 million tokens worth $25 million.
The CAKE supply was reduced from 750 million to 450 million following a community vote last month. The price of CAKE is trading around $2.95, up about 1.2% in the last 24 hours.

The burn comes after the maximum CAKE supply was reduced from 750 million to 450 million. The community’s vote on reducing the 300 million CAKE supply took place at the end of December last year.

A few days before the vote, PancakeSwap burned 10 million tokens. This latest burn was for CAKE tokens worth over $25 million.

Burned tokens were derived from AMM V2, AMM V3, and non-AMM transaction fees, including perpetual and position manager. Burnt CAKE can also be obtained from predictions, lotteries, NFTs and games. was done.

PancakeSwap What’s Next for its price?

Burning mechanisms in the crypto world are important. Because it is a part of tokenomics that market experts say can increase the value of a token in the long run.

Koinfinans.com As we reported, the PancakeSwap community supports these regular CAKE burns, as evidenced by the latest vote. They are also behind other initiatives aimed at putting the project ahead of rival platforms. Therefore, this latest move is likely to increase sentiment amid bullish market expectations.

Currently, CAKE price is hovering around $2.95, up about 1.2% in the last 24 hours. However, it has fallen over the past two weeks after paring gains to $3.94 in late December. This rise coincided with token burns and supply reductions.

Sentiment has increased following market declines over the past few days. However, it is possible that CAKE will try to regain control near the last peak. On the other hand, it is possible that buyers will try to defend the $2.00-$2.50 zone.


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