CAKE Token Surges 25%: Reasons and Other Altcoin Leaders

On December 26, after burning 10 million CAKE tokens, the native coin of the PancakeSwap DEX-platform jumped 25% — from $2.95 to $3.72.

Subsequently the price retraced to around $3.35, but by the time of writing had recovered to $3.65.

The weekly gain for CAKE stood at 65%. The asset’s market capitalization over this period rose from $590 million to $965 million, according to CoinGecko.

Price moves followed the burning of 10,166,225 CAKE worth about $34 million, as part of the token’s supply reduction.

? 10,166,225 $CAKE just burned — that’s $34M!

? Trading fees (AMM V2): 132k CAKE ($438k) -29%
? Trading fees (AMM V3): 79k CAKE ($260k) -23%
? Trading fees (Non-AMM like Perpetual, Position manager etc): 4k CAKE ($1k) -98%
? Prediction: 34k CAKE ($112k) -27%
?️ Lottery &… pic.twitter.com/veRsDhcFFB

— PancakeSwap?Everyone’s Favorite DEX (@PancakeSwap) December 26, 2023

Last week, the platform’s community proposed reducing the circulating supply from 750 million to 450 million — after the proposal, the coin price also rose by 20%.

The current circulating supply stands at about 266 million CAKE.

According to the developers, a certain amount of tokens will be burned weekly until the community decides to halt the process.

Although CAKE has strengthened its position, it remains far from its April 2021 high of $41.

Other favorites

Meanwhile, the Polygon (MATIC) ecosystem token surpassed the $1 mark for the first time in eight months, gaining more than 20% in a day.

The rise was accompanied by a surge in trading volumes. MATIC’s market cap over 24 hours rose by almost $2 billion to $10 billion, and trading volume topped $2.6 billion.

Meanwhile, in recent days the project’s developers have not issued major announcements. The Polygon community is now awaiting the launch of a new asset, Polygon Ecosystem Token (POL), designed to replace MATIC.

$MATIC is one of the most undervalued projects out there. If I wouldnt have bought tons of it at $0.50 I would heavily enter now as anything below $1 is a gift

Sooner or later its an easy double digit coin in the incoming bull. One of my favorite coins

— Doctor Profit ?? (@DrProfitCrypto) December 26, 2023

«MATIC — один из самых недооцененных проектов. Если бы я не купил их тонны по $0,50, то активно вошел сейчас, поскольку все, что ниже $1, является подарком. Рано или поздно на предстоящем бычьем рынке это будет двузначный токен», — написал трейдер под ником Doctor Profit.

The Arbitrum ecosystem token also gained nearly 12% in 24 hours, reaching $1.50.

Weekly gains for the asset exceeded 75%, and yearly gains reached 300%.

The #Ethereum ecosystem is heating up, as Arbitrum and Optimism are rallying.

It’s just getting started with the cycle.

— Michaël van de Poppe (@CryptoMichNL) December 27, 2023

«Экосистема Ethereum накаляется, поскольку Arbitrum и Optimism устроили ралли. Цикл только начинается», — сказал основатель MN Trading Михаэль ван де Поппе.

The Arbitrum ecosystem token also rose by almost 12% in 24 hours, reaching $1.5.

Earlier on December 24, the Solana (SOL) token rose to $118 for the first time since April 2022. Other on-chain metrics for the blockchain also updated annual highs.