PancakeSwap has seen the price of its native token rise slightly after the multi-chain decentralized exchange announced it had burned over 9 million tokens.
The price of PancakeSwap (CAKE) increased by approximately 2.3% after the advertisementThis caused buyers to rebound from the lows of $1.64 it had hit earlier in the day. CAKE was trading at around $1.72 at the time of writing, with 24-hour trading volume up more than 37% to $21.3 million.
PancakeSwap Token Burn
On September 2, PancakeSwap (CAKE) posted on X that the latest token burn permanently removed 9,171,676 CAKE tokens from circulation. According to details published by the DEX platform, the burn represented $15 million worth of CAKE.
This is PancakeSwap’s latest token burn, which reduces the circulating supply of CAKE to 264,190,448 tokens. This supply represents 58.71% of the total supply, which the community has sought to reduce with regular token burns.
Across the cryptocurrency market, projects have employed burn mechanisms to reduce the circulating supply of the native token. The overall goal is to inject scarcity into the market for the digital asset in question, which is seen to have a bullish impact on the price.
PancakeSwap introduced a fundamental proposal on CAKE tokenomics in December 2023. The proposal asked the community to vote on whether Cut CAKE supply by 300 million tokensreducing it from a maximum of 750 million tokens to 450 million tokens.
The vote was approved and PancakeSwap currently has a total supply of 383,118,820 CAKE, with a maximum supply of 450 million tokens.
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