Popular decentralized exchange PancakeSwap has recently announced the burn of over 9 million of its native $CAKE tokens in a move that destroyed over $19 million worth of tokens, in a move that helps to reduce their circulating supply.
In a post on the microblogging platform X (formerly known as Twitter) PancakeSwap’s team broke down the move and noted that trading fees revenues from various automated market maker (AMM) versions of its platform have risen significant, with position manager and perpetual trading revenues growing over 1,000%.
This month alone, PancakeSwap has reported burning CAKE tokens worth over $62 million through various token burns with values hitting up to $22 million. These numbers reflect a significant reduction in the cryptocurrency’s circulating supply.
Cryptocurrency enthusiasts often aim to reduce the circulating supply of digital assets in a bid to lower their supply on the market. If a lower supply is met with growing demand, its price should rise in a move that benefits existing token holders.
Despite these token burns, CAKE is down by over 10% over the past 30 days amid an ongoing correction that has seen it lose nearly 30% of its value over the past year. As CryptoGlobe reported, the decentralized exchange moved to disburse a share of its trading fee revenue amounting to millions of dollars to CAKE token stakers earlier this year.
PancakeSwap, according to popular decentralized finance analytics platform DeFiLlama, currently has a $326 million market capitalization and $356 million worth of tokens staked on it. Its annualized trading volume is $174 billion.
Featured image via Pixabay.
