Name Price24H (%)
Bitcoin (BTC)
$40,933.00
-8.50%
Ethereum (ETH)
$3,195.31
-5.09%
Binance Coin (BNB)
$480.73
-6.59%
Cardano (ADA)
$1.88
-7.21%
PancakeSwap Approves “Big Burn” For CAKE, Why It Could Be Ma...
News

PancakeSwap Approves “Big Burn” For CAKE, Why It Could Be Massively Bullish

Centralized and decentralized exchanges are stepping up their game, with the upcoming launch of Uniswap v3, competition in the sector is bound to be fierce. PancakeSwap’s second iteration is also around the corner. CAKE holders will be able to profit.

In a recent vote, PancakeSwap’s community decided to approve a feature called the “Big Burn”. Therefore, after April 23rd “Great Migration” the exchange will buy back and burn more CAKE “than ever before”. Every trade in PancakeSwap v2 will “contribute” to this mechanism.

The exchange’s daily trading volume sits at around $4 billion. According to the recently approved burn mechanism, this figure will be multiple by 0.05%. As a result, around 2.2 million CAKE could be buyback and burned each day. If PancakeSwap maintains its current daily trading volume, its native token buying pressure could skyrocket for the benefit of investors.

PancakeSwap CAKE CAKEUSDT
Source: PancakeSwap

Analyst Vivian Medithi published an article on Nasdaq making some bullish predictions on CAKE. At that time, CAKE was trading at $21.26 following a 1,200% year-to-date rally in February. The analyst highlighted the bearish sentiment of some investors and the token’s capacity to prove them wrong.

Medithi quotes Coinpedia, Wallet Investor, and Digital

Ledger - Crypto Beginners Pack

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>Coin to backed up a bullish case for this token. The predictions place CAKE between $44 to 80 by the end of 2021. Next year, CAKE could trade for $150 and $280 by 2026. These predictions were made before the “Big Burn” was approved and don’t take into account the new potential increase in buying pressure.

What’s PancakeSwap “Great Migration”?

Tomorrow at 5:00 am UTC, the “Great Migration” will take place on PancakeSwap. Due to the upcoming update, the exchange’s smart contract PancakeSwap Router and PancakeSwap Factory required a change in their feed structure. CAKE holders can vote to modify this component.

They were presented with 4 options: Split (increase trading fee to 0.22%), Burn (0.22%), Big Split (0.25%), and Big Burn (0.25%). As mentioned, users opted for the latter which also provides a 0.17% fee for liquidity providers and keeps PancakeSwap’s fee below the “tradition 0.3%” used by their competitors, according to an official post. The migration will also add the following:

(…) we’re creating a new set of LP Tokens, and our farms and exchange will start supporting the new type instead of the old ones.

Investors with tokens on this exchange should be aware that they will stop receiving rewards for the “old type of LP Tokens. Instead, the rewards will shift to the new ones. Users must take their tokens out of all PancakeSwap’s products and add liquidity with the new token to re-stake in new farms to maintain their rewards. The team behind the exchange added:

We’ll also make a new set of farms with the same rewards and token pairs as the old ones. The old farms will stop giving out rewards, so you’ll need to transfer to the new ones to keep farming yield.

CAKE is trading at $26,85 with a 2.9% loss in the daily chart. In the weekly and monthly chart, CAKE has 17.1% and 144.9% profits, respectively.

PancakeSwap CAKE CAKEUSDT
CAKE with moderate losses in the daily chart. Source: CAKEUSDT Tradingview

Source: NewsBTC.com

coinmag

Cryptocurrency news, blockchain news, markets news, cryptocurrency analysis, cryptocurrencies prices.