What could affect the price of CAKE?
The price of PancakeSwap’s CAKE token depends on how well its deflation strategy works, competition among decentralized exchanges (DEXs), and how much the community trusts its leadership.
- Tokenomics 3.0 Update – Cutting supply aggressively but facing risks from unlocked CAKE tokens being sold
- DEX Market Share – Leading in trading volume but challenged by Uniswap and Solana-based DEXs
- Governance Trust – Risk of backlash after ending veCAKE staking program
In-Depth Analysis
1. Tokenomics 3.0: Balancing Supply Cuts with Unlocked Tokens (Mixed Effects)
What’s Happening:
PancakeSwap’s Tokenomics Proposal 3.0 plans to reduce the supply of CAKE by about 4% annually. This is done by cutting daily token emissions nearly in half (from 40,000 to 22,500 CAKE) and burning 15% of fees from the new version 3 pools. However, ending the veCAKE staking program will unlock roughly 60 million staked CAKE tokens by October 2025, which could lead to increased selling pressure.
What This Means for CAKE:
In the long run, reducing the total supply (aiming for a 20% drop by 2030) could increase CAKE’s value if demand stays strong. But in the short term, the unlocked tokens might push prices down, similar to the 30% drop seen in 2023 after previous staking changes. The success of this strategy depends on balancing token burns with creating new uses for CAKE, like participation in Token Generation Events (TGE) or Initial Farm Offerings (IFO).
2. DEX Volume Competition: Strong BNB Chain Position vs. Growing Rivals (Positive Outlook)
What’s Happening:
In July, PancakeSwap handled about $188 billion in trading volume, making up 43% of all decentralized exchange trades. This success is largely thanks to the BNB Chain’s low transaction fees. However, DEXs on the Solana blockchain, like Raydium and Orca, have grown over 300% this year, and Uniswap remains a major player on Ethereum.
What This Means for CAKE:
CAKE benefits from the strong performance of the BNB Chain (which hit an all-time high price of $755 in July) and its listing on Coinbase. But if Solana and other faster blockchains continue to grow, PancakeSwap could lose market share, reducing fee burns that help support CAKE’s price. Keep an eye on Solana’s trading volume, currently around $100 million per day, for signs of wider cross-chain adoption.
3. Governance Challenges: Risk of Losing Community Trust (Negative Outlook)
What’s Happening:
The sudden end of the veCAKE staking program upset many long-term stakers and partners like Cakepie, who called the move a “betrayal.” CAKE’s price dropped 12% after the announcement in April 2025, showing concerns about the project’s credibility.
What This Means for CAKE:
Frequent changes to tokenomics, such as cutting the maximum supply from 750 million to 450 million in 2024, might scare off institutional investors. To regain trust, PancakeSwap needs to communicate clearly and fairly compensate those affected by these changes.
Conclusion
CAKE’s future depends on successfully managing deflationary measures while navigating risks from unlocked tokens and governance issues. In the near term, watch CAKE’s burn rate after the Tokenomics 3.0 rollout and how closely its price follows BNB’s performance. Over the long term, PancakeSwap must maintain its lead in the DEX market and avoid mistakes that could damage community trust.
Will the unlocked CAKE tokens trigger a sell-off, or will they attract new investors looking for opportunities?
What are people saying about CAKE?
The CAKE community is buzzing between excitement over price breakouts and discussions about token supply reduction. Here’s what’s trending right now:
- Technical traders are targeting $3 and above after CAKE breaks an important resistance level
- Integration with the Base network is driving optimism about CAKE working across multiple blockchains
- $99 million worth of tokens burned in July highlights the deflationary aspect of CAKE
Deep Dive
1. @johnmorganFL: Symmetrical triangle breakout points to $3.39–$4.29 🐂
“Golden cross + RSI(7) at 80.3 signal overbought but bullish conditions”
– @johnmorganFL (89K followers · 1.1M impressions · July 28, 2025, 4:33 PM UTC)
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What this means: This is a positive sign for CAKE as technical traders are optimistic about the price breakout. However, the RSI (Relative Strength Index) suggests the price might be temporarily overbought, meaning a short-term pullback could happen.
2. @StargateFinance: Solana integration expands CAKE’s reach 🧩
“CAKE now transferable across 8 chains via Stargate with zero slippage”
– @StargateFinance (312K followers · 2.4M impressions · July 28, 2025, 1:30 PM UTC)
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What this means: This is good news for CAKE holders because the token can now move easily across eight different blockchain networks, including Solana, which has a large and active ecosystem. This makes CAKE more useful and accessible.
3. @PancakeSwap: Mysterious teaser sparks curiosity 🕵️♂️
“PancakeSwap is for ____” (1.2M impressions in 6 hours)
– @PancakeSwap (2.1M followers · August 12, 2025, 2:45 PM UTC)
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What this means: This vague message caused CAKE’s price to jump by 2.8%, but traders are waiting for more details before getting fully excited about what’s coming next.
Conclusion
The overall outlook for CAKE is optimistic but cautious. While technical indicators and cross-chain developments are positive, the price faces resistance around $2.95, and there are still questions about how Binance Smart Chain’s influence will play out. Keep an eye on the weekly token burn rate (which was a net reduction of 566,000 CAKE last week) and whether the bullish technical pattern holds during the market’s ups and downs in September.
What is the latest news about CAKE?
PancakeSwap is gaining momentum with its cross-chain expansion, token burns that reduce supply, and a special birthday tour. Here’s the latest update:
- 24th CAKE Burn Streak (September 2, 2025) – Over 26 million CAKE tokens burned, helping reduce overall supply.
- Solana Hits $500 Million Trading Volume (September 2, 2025) – Strong growth shortly after launch.
- Coinbase Retail DEX Integration (September 2, 2025) – Base chain assets can now be traded directly through the Coinbase app.
Deep Dive
1. 24th CAKE Burn Streak (September 2, 2025)
Overview: PancakeSwap burned 26.26 million CAKE tokens in August 2025, marking 24 months in a row of reducing the token supply. So far, about 361 million CAKE tokens have been burned, which is 45% of the total maximum supply of 800 million. This results in a monthly reduction rate of about 0.7%.
What this means: Regular token burns help balance supply and demand, which can reduce selling pressure. However, while the price of CAKE increased by 12.3% over the past 90 days, it actually dropped by 4.32% in the last 30 days, indicating that the market is paying more attention to how useful the token is rather than just the supply reduction. (PancakeSwap Blog)
2. Solana Hits $500 Million Trading Volume (September 2, 2025)
Overview: PancakeSwap’s launch on the Solana blockchain reached $500 million in trading volume within just one month. This growth was supported by Turbo Farms, which offers over 50 boosted pools, and cross-chain connections through LayerZero technology.
What this means: Solana’s fast and efficient network fits well with PancakeSwap’s strategy to operate on multiple blockchains. This helps diversify where revenue comes from. Currently, 85% of CAKE’s 24-hour trading volume ($69.9 million) still happens on the BNB Chain, but Solana’s growth could help reduce risks tied to relying on a single blockchain.
3. Coinbase Retail DEX Integration (September 2, 2025)
Overview: PancakeSwap liquidity is now available through Coinbase’s Retail Decentralized Exchange (DEX), allowing users to swap Base chain assets like DEGEN and BALD directly within the Coinbase app.
What this means: With over 110 million users on Coinbase, this integration could significantly increase CAKE’s adoption. However, PancakeSwap will face strong competition from Uniswap, which dominates Ethereum Layer 2 networks. This move also supports recent upgrades in BNB Chain’s Kickstart Program, strengthening ties within the ecosystem.
Conclusion
PancakeSwap is combining a disciplined approach to reducing token supply with bold expansion across multiple blockchains. It’s targeting both experienced DeFi users through Solana and perpetual contracts, as well as everyday traders through Coinbase. With the “Flippin’5” Asia tour boosting community engagement, the key question is whether CAKE can use its strong BNB Chain foundation to outpace Ethereum-focused decentralized exchanges. Keep an eye on how trading volume shifts across different blockchains for insights.
What is expected in the development of CAKE?
PancakeSwap is moving forward with several key updates:
- Web3 Quest Platform (Q3 2024) – A fun, game-like way for users to earn rewards by completing tasks on the blockchain.
- Multichain Simple Staking (Q3 2024) – An easy-to-use staking system that works across multiple blockchains.
- Turbo Farms on Solana (September 2025) – High-reward farming opportunities on the Solana network, offering over $1 million in CAKE rewards.
In-Depth Look
1. Web3 Quest Platform (Q3 2024)
What it is:
This platform makes using PancakeSwap more engaging by turning activities like trading, adding liquidity, and interacting with NFTs into rewarding challenges. Although planned for Q3 2024, ongoing development and recent user interface improvements suggest it may launch closer to August 2025. You can learn more in PancakeSwap’s Roadmap.
Why it matters:
This could be great for CAKE because it encourages users to stay active and use multiple blockchains, which can increase fees collected by the platform and lead to more CAKE tokens being burned (removed from circulation). However, delays might allow competitors like Galxe to gain an edge.
2. Multichain Simple Staking (Q3 2024)
What it is:
This feature will let users stake their CAKE tokens easily across different blockchains like BNB Chain, Ethereum, and Solana, all from one place. Recent updates mention using LayerZero technology to connect these chains, as detailed in their August 2025 blog.
Why it matters:
This could attract more users, especially smaller investors, by simplifying the staking process. However, its success depends on offering competitive returns and managing token supply carefully to avoid reducing the value of CAKE through too many new tokens being issued.
3. Turbo Farms on Solana (September 2025)
What it is:
Starting in August 2025, PancakeSwap launched over 50 boosted farms on the Solana blockchain, distributing 500,000 CAKE tokens as rewards over 100 days. With Solana’s trading volume reaching $500 million per month, this move aims to capture more users from Solana’s growing decentralized finance (DeFi) community. More details are in their August 2025 recap.
Why it matters:
This is positive for CAKE because it taps into a large and active market. However, heavy reliance on reward programs can cause price swings once the incentives end.
Conclusion
PancakeSwap’s plans focus on expanding its ecosystem—especially through Solana and the Web3 Quest Platform—while improving user experience with easier staking and better interfaces. By supporting multiple blockchains and offering incentives, PancakeSwap aims to increase CAKE’s usefulness and demand. Still, how quickly they deliver these features and manage token supply will be key to keeping CAKE’s value strong, especially as more tokens are introduced through multichain farming.
What updates are there in the CAKE code base?
PancakeSwap is actively improving its platform with a focus on making cross-chain transactions smoother, reducing transaction fees, and integrating with the Solana blockchain.
- Solana SDK Support (August 21, 2025) – The core software now supports Solana, enabling easy swaps between Solana and Ethereum-compatible blockchains.
- Turbo Farms on Solana (August 2025) – Over 50 new farms launched on Solana, offering more than $1 million in CAKE rewards.
- EIP-5792 Implementation (June 2025) – A new feature that combines token approvals and swaps into one step, cutting transaction costs.
Deep Dive
1. Solana SDK Support (August 21, 2025)
Overview: The latest update to PancakeSwap’s software development kit (SDK) now includes native support for Solana. This means developers can create apps that let users swap tokens seamlessly between Solana and Ethereum-compatible blockchains like Binance Smart Chain.
The SDK also works smoothly with popular Solana wallets such as Phantom and Solflare, handling Solana’s unique transaction format.
What this means: This is a positive development for PancakeSwap and CAKE holders because it expands the platform’s reach to Solana users, potentially increasing adoption and trading volume (Source).
2. Turbo Farms on Solana (August 2025)
Overview: PancakeSwap introduced more than 50 Turbo Farms on the Solana blockchain, offering a total of 500,000 CAKE tokens (worth about $1.3 million) as rewards over 100 days.
These farms use LayerZero technology to bridge CAKE tokens across blockchains, allowing liquidity providers to earn rewards while participating in Solana’s fast and low-cost network.
What this means: This move encourages more users to provide liquidity, which is good for the ecosystem. However, distributing rewards can also lead to increased selling pressure on CAKE tokens, making the overall impact neutral (Source).
3. EIP-5792 Implementation (June 2025)
Overview: PancakeSwap adopted Ethereum Improvement Proposal 5792 on multiple blockchains including BNB Chain, Ethereum, and Base. This update lets users approve tokens and make swaps in a single transaction instead of two separate steps.
By cutting down unnecessary steps, users save about 15% on transaction fees if their wallets support this feature.
What this means: Lower fees make trading more attractive, which can help increase user activity and benefit CAKE’s growth (Source).
Conclusion
PancakeSwap’s recent updates focus on improving cross-chain compatibility (with Solana), reducing transaction costs (via EIP-5792), and boosting liquidity incentives (through Turbo Farms). These enhancements support PancakeSwap’s goal to be a leading decentralized finance (DeFi) platform across multiple blockchain ecosystems. The key question remains: how will these technical improvements affect CAKE’s popularity compared to competitors like Uniswap V4?
Why did the price of CAKE fall?
PancakeSwap (CAKE) dropped 0.4% in the last 24 hours, slightly underperforming the overall crypto market, which fell 0.36%. This small decline comes after a strong 7.9% gain over the past week and is influenced by several factors:
- Concerns About Binance Support – Social media rumors suggest Binance might be reducing its support for CAKE (source)
- Staking Deadline Reminder – Users are being reminded to withdraw CAKE tokens staked in older pools by October 23, 2025 (source)
- Technical Market Correction – The Relative Strength Index (RSI) indicates CAKE was overbought after its recent rally
In-Depth Analysis
1. Binance Support Concerns (Negative Impact)
What happened:
A tweet on September 3 claimed that Binance might be favoring its own token, BNB, over CAKE. This message spread quickly, even though PancakeSwap is closely connected to Binance’s BNB Chain. Interestingly, while CAKE’s price fell 0.4%, BNB’s price rose by 0.5% during the same period.
Why it matters:
Although these claims aren’t confirmed, they highlight how much CAKE’s value depends on Binance’s ecosystem. In fact, PancakeSwap’s August report showed that nearly 97% of its trading volume in the second quarter came from the BNB Chain. So, any perceived change in Binance’s priorities can affect CAKE’s price.
2. Staking Deadline Approaching (Neutral to Slightly Negative Impact)
What happened:
PancakeSwap reminded users that they need to withdraw their CAKE tokens from older staking pools by October 23, 2025. This is part of an update called Tokenomics 3.0. In August, over $99 million worth of CAKE tokens were permanently removed from circulation to reduce supply.
Why it matters:
This deadline might encourage some users to sell their tokens as they exit the old staking system. However, current trading volume ($65.4 million in 24 hours) suggests there isn’t a rush to sell just yet, since the deadline is still several weeks away.
3. Market Technical Correction (Neutral Impact)
What happened:
The 7-day Relative Strength Index (RSI) for CAKE reached 69.65 on September 12, which is close to the overbought threshold of 70. After this, the price pulled back slightly to $2.59 but remains above its 7-day simple moving average (SMA) of $2.48.
Why it matters:
This price dip is typical profit-taking after a strong weekly gain of 7.9%. Traders will be watching key support levels: bulls hope the price stays above $2.56 (30-day SMA), while bears look at $2.47, a key Fibonacci retracement level, as a potential target.
Conclusion
The small drop in CAKE’s price reflects a mix of profit-taking, the upcoming staking deadline, and unconfirmed rumors about Binance’s support. This is happening alongside strong token deflation, with 24 million CAKE tokens burned since the start of 2023.
What to watch next: Will Binance’s new Kickstart Program, which includes PancakeSwap liquidity, help offset these negative sentiments?