Why did the price of CAKE go up?

PancakeSwap (CAKE) increased by 1.35% to $2.79 in the last 24 hours, pushing its weekly gain to 5.8%. This growth is driven by faster token burns, expansion to the Solana blockchain, and positive technical signals, all happening as interest in alternative cryptocurrencies improves.

1. Deflationary momentum – CAKE tokens burned for the 24th month in a row (26.26 million tokens)
2. Utility expansion – CAKE now connects to Solana using Stargate’s zero-slippage OFT bridge
3. Technical strength – Bullish MACD crossover and neutral RSI suggest room for price growth

Deep Dive

1. Deflationary Momentum (Positive for Price)

Overview: In August 2025, PancakeSwap permanently removed 26,259,089 CAKE tokens (about $73 million), marking 24 consecutive months of reducing the token supply. Since 2023, 26% of CAKE’s total maximum supply has been burned.

What this means: By lowering the number of tokens available, CAKE becomes scarcer, which can help increase its value. Currently, 345 million CAKE tokens are circulating out of a 450 million maximum supply. The burns are funded by fees from trading activity, and with $136 million in daily trading volume in August, this deflationary process is sustainable.

What to watch: Whether the number of tokens burned continues to exceed the number of new tokens created (currently about 22,250 CAKE per day).

2. Cross-Chain Growth (Mixed Impact)

Overview: On July 28, CAKE became available on the Solana blockchain through Stargate’s OFT bridge, allowing seamless transfers between eight different blockchains. PancakeSwap also partnered with Coinbase Retail DEX in August.

What this means: Being accessible on multiple blockchains like BNB Chain, Ethereum, Solana, and Base increases CAKE’s usefulness for trading and staking. However, competition from established Solana-based decentralized exchanges like Raydium and Orca limits immediate growth. CAKE’s trading volume on Solana reached $100 million but still makes up less than 5% of its total volume.

3. Technical Breakout (Positive Signal)

Overview: On September 22, CAKE’s price rose above its 200-day exponential moving average (EMA) at $2.45. The MACD indicator turned positive (+0.0328), and the Relative Strength Index (RSI) was neutral at 55.6.

What this means: These technical signals suggest growing buying momentum. If CAKE’s price closes above $2.83 (a key Fibonacci retracement level), it could aim for resistance at $2.95. However, trading volume dropped by 7.6% in the last 24 hours, indicating cautious investor participation.

Conclusion

CAKE’s recent price increase reflects ongoing token burns, expanding blockchain support, and improving technical indicators, all within a generally neutral cryptocurrency market (Fear Index at 39). While this isn’t a major breakout, the current setup favors buying above the $2.73 level.

Key point to watch: Can CAKE maintain support at $2.75 as PancakeSwap’s unstaking deadline on October 23 approaches?

What could affect the price of CAKE?

The price of PancakeSwap (CAKE) depends on changes in its tokenomics, competition, and overall market mood.

1. Tokenomics 3.0 Update – Daily token emissions cut by 44%, unlocking over 60 million staked CAKE by October 2025. This may cause short-term price drops but could be positive in the long run.
2. Deflation Strategy – Aiming to burn 4% of tokens annually by redirecting fees; growing decentralized exchange (DEX) trading volume supports this plan.
3. Exchange Listings & Partnerships – Coinbase listing in June 2025 and new collateral options with Lista DAO in August 2025 increase CAKE’s usability.
4. Market Sentiment – The Fear & Greed Index is at 39 (indicating fear), but the Altcoin Season Index is rising 42% monthly, suggesting growing investor interest in altcoins.

In-Depth Analysis

1. Tokenomics 3.0: Balancing Emissions Cuts and Token Unlocks

What’s happening:
PancakeSwap’s Tokenomics Proposal 3.0 reduces daily CAKE emissions from 40,000 to 22,500 tokens (a 44% cut) and ends veCAKE staking. This will unlock about 60 million CAKE tokens by October 23, 2025. The goal is to reduce total supply by 20% by 2030, but unlocking tokens could increase selling pressure in the short term.

What this means for investors:

• Short-term downside: When large amounts of tokens become available, prices often dip 8–15%. For example, CAKE’s price dropped 12% after a previous unlock in 2023.
• Long-term upside: Lower emissions combined with increased token burning (15% of fees) could reduce supply and support price growth, especially if trading volume keeps growing around 7.5% weekly.

2. Competition and Expansion Across Blockchains

Current landscape:
PancakeSwap leads on the BNB Chain, generating 64% of the protocol’s revenue there. However, it faces competition from Uniswap, which dominates cross-chain trading. PancakeSwap’s recent launch on Solana reached $100 million in daily trading volume by August 2025, and its Coinbase listing has made CAKE more accessible in the U.S.

What this means:

• Solana’s low fees might capture 10–15% of CAKE’s trading volume by 2026, according to Dune Analytics.
• On Ethereum, PancakeSwap’s market share is small (0.3% vs. Uniswap’s 77%), but the upcoming Infinity upgrade could cut gas fees by 50%, potentially attracting more users.

3. Regulatory and Market Sentiment Risks

Key points:
Turkey blocked PancakeSwap in July 2025, showing how regulations can impact access. The Fear & Greed Index is currently at 39, signaling cautious investor sentiment. However, the Altcoin Season Index is rising, indicating growing interest in alternative cryptocurrencies.

What this means:

• Regulatory actions in important markets like Turkey (which accounts for 9% of CAKE users) could slow down trading volume growth.
• When the Fear & Greed Index moves above 50 (toward “Greed”), CAKE has historically seen price rallies of 20–30%, as it did in May 2025.

Conclusion

CAKE’s price is likely to fluctuate as the effects of Tokenomics 3.0 play out—balancing supply reductions with the impact of unlocking tokens. Keep an eye on the October 23, 2025 unlock date and trading volume trends on Solana. If daily volume on Solana stays above $150 million, it could reduce PancakeSwap’s reliance on the BNB Chain. The big question remains: will token burning outpace selling pressure?

What are people saying about CAKE?

PancakeSwap’s CAKE token is showing signs of both excitement and hesitation. Here’s what’s happening right now:

1. Traders are watching the $2.95 price level closely after a teased “major announcement.”
2. CAKE is expanding to new blockchains like Solana and Base, sparking discussions about its usefulness.
3. More than 24 million CAKE tokens have been burned since 2023, creating a supply shortage story.

In-Depth Look

1. Bullish Signs from Technical Analysis

John Morgan (@johnmorganFL) points out that CAKE has broken through an 8-month resistance level. He says if CAKE stays above $2.64, it could reach $4.25.

• What this means: Traders who use charts believe CAKE could go up if it stays above $2.80. But if it falls below that, it might test support at $2.50. The current Relative Strength Index (RSI) is 62.5, indicating moderate buying strength.
  See John Morgan’s original post

2. Expanding Across Multiple Blockchains

PancakeSwap announced that CAKE is now available on Solana through LayerZero, allowing transfers without slippage (price changes during transfer).

• What this means: Being on 8 different blockchains increases CAKE’s usefulness. However, some worry this could reduce the trading volume dominance of the BNB Chain, which currently holds 96.7% of CAKE’s trading volume (source).
  See PancakeSwap’s announcement

3. Supply Reduction Through Token Burns

A community forum highlights that over 26 million CAKE tokens have been burned since 2023, reducing the supply by about 0.567% in August alone.

• What this means: Burning tokens (permanently removing them from circulation) can create scarcity, potentially increasing value. CAKE’s circulating supply has dropped to 345 million, down 4.2% year-to-date.
  Read the full proposal

Summary

Opinions on CAKE are mixed. Some traders are optimistic based on technical charts, while others worry about competition from other decentralized exchanges (DEXs) and reliance on the BNB Chain. Keep an eye on the $2.95 resistance level this week—breaking above it could confirm both the technical and supply-driven bullish outlook. The big question remains: will CAKE’s move to multiple blockchains bring in new investors or spread its liquidity too thin?

What is the latest news about CAKE?

PancakeSwap is heating up with new features and expanding worldwide. Here’s a quick look at the latest news:

1. Turbo Farms Launch on Solana (September 2, 2025) – Over 50 boosted farms offering more than $1 million in CAKE rewards to encourage DeFi activity.
2. Perpetuals Trading Upgrades (September 2, 2025) – Up to 1,000x leverage on Ethereum perpetual contracts and stock perpetuals for Apple (AAPL), Amazon (AMZN), and Tesla (TSLA).
3. Asia Tour & Coinbase Integration (September 2, 2025) – On-chain events in Tokyo, Hanoi, and Jakarta, plus trading on the Base blockchain now available through the Coinbase app.

Deep Dive

1. Turbo Farms Launch on Solana (September 2, 2025)

What’s happening: PancakeSwap has launched Turbo Farms on the Solana blockchain, featuring more than 50 liquidity pools. They’re offering 500,000 CAKE tokens (about $1.4 million) in rewards over 100 days. This comes after PancakeSwap’s Solana-based decentralized exchange (DEX) quickly reached $500 million in monthly trading volume.
Why it matters: This move encourages users to move their liquidity to Solana, which could increase CAKE’s use across different blockchains. However, PancakeSwap will face competition from established Solana DEXs like Raydium.
(PancakeSwap Blog)

2. Perpetuals Trading Upgrades (September 2, 2025)

What’s happening: PancakeSwap now offers up to 1,000x leverage on Ethereum perpetual contracts and introduced stock perpetuals for Apple, Amazon, and Tesla with 25x leverage. They also added Take Profit orders that can lock in gains up to 500%.
Why it matters: These advanced trading options may attract traders willing to take higher risks, increasing trading fees for PancakeSwap. In August, the platform saw $58.7 million in 24-hour perpetuals trading volume (The Block), showing growing interest. However, very high leverage can lead to quick losses if the market moves suddenly.

3. Asia Tour & Coinbase Integration (September 2, 2025)

What’s happening: PancakeSwap started its “Cooked Onchain Tour” in Tokyo, celebrating BNB Chain’s 5th anniversary, with upcoming events in Hanoi and Jakarta. At the same time, assets on the Base blockchain are now tradable directly through Coinbase’s Retail DEX.
Why it matters: These events help build stronger connections with users in fast-growing Asian markets. The Coinbase integration makes it easier for new users to trade on PancakeSwap through a well-known and regulated platform.

Conclusion

PancakeSwap is focusing on making its platform accessible across multiple blockchains like Solana and Base, offering powerful trading tools, and growing its presence in Asia. With CAKE’s price up 30% over the past 90 days and a reduction of 26 million CAKE tokens in August through token burns, the project is balancing growth with careful management of its token supply. The big question is whether the new leveraged trading options and Solana farms can keep up momentum as competition in the altcoin space heats up.

What is expected in the development of CAKE?

PancakeSwap is moving forward with several key updates:

1. $L2APP DEX Launch (October 31, 2025) – The launch has been delayed to fine-tune the long-term strategy.
2. Crosschain veCAKE Expansion (Q3 2025) – Governance will expand to Ethereum and BNB Chain, allowing more influence across blockchains.
3. Web3 Quest Platform (2025) – A new gamified system to engage users through blockchain tasks and rewards.

In-Depth Look

1. $L2APP DEX Launch (October 31, 2025)

What’s happening:
PancakeSwap postponed the $L2APP token launch to October 31, 2025. Instead of rushing, they’re focusing on a solid plan that includes a 100-day "Turbo Farms" campaign on the Solana blockchain, offering 500,000 CAKE tokens as rewards. They’re also using LayerZero technology to enable crosschain transfers, making it easier to move assets between blockchains.

Why it matters:
This delay might cause some short-term uncertainty for CAKE holders, but it aims to improve the token’s long-term value and use. If successful, it could make CAKE more useful across different blockchain networks. However, if the plan doesn’t go smoothly, it could put some pressure on CAKE’s price.

2. Crosschain veCAKE Expansion (Q3 2025)

What’s happening:
Following the end of the original veCAKE system in April 2025, PancakeSwap is expanding its governance model to include Ethereum and BNB Chain. This means CAKE holders will have a say in how liquidity rewards are distributed across multiple blockchains, simplifying governance as part of their Tokenomics 3.0 update (learn more).

Why it matters:
This is a positive move for CAKE because it could encourage more users to stake their tokens, reducing the number of tokens being sold. However, managing governance across several blockchains can be complex and may present challenges.

3. Web3 Quest Platform (2025)

What’s happening:
PancakeSwap plans to launch a gamified platform where users earn rewards like NFTs or CAKE tokens by completing blockchain-based tasks such as trading or providing liquidity. This will work alongside existing features like predictions and lotteries.

Why it matters:
This could help keep users engaged and increase revenue for the platform. The success of this feature will depend on how easy it is to use and how appealing the rewards are.

Summary

PancakeSwap is working on both technical improvements ($L2APP launch, veCAKE expansion) and user-friendly features (Web3 Quests) to strengthen its position across multiple blockchains. With CAKE’s price up 29% over the past 90 days and growing interest from institutions like Coinbase, these updates could help PancakeSwap maintain its leadership in decentralized finance (DeFi).

How will PancakeSwap’s focus on crosschain interoperability impact its competition with Uniswap?

What updates are there in the CAKE code base?

PancakeSwap’s development is actively focused on expanding cross-chain capabilities and improving efficiency.

1. SDK Upgrades (Sept 19, 2025) – Several software development kits (SDKs) updated to support Ethereum-compatible (EVM) and Solana blockchains.
2. Solana Integration (July 28, 2025) – CAKE tokens can now be moved to Solana using LayerZero’s OFT standard.
3. Open-Source Rebrand (April 28, 2025) – PancakeSwap Infinity launched with customizable smart contract features called "Hooks."

Deep Dive

1. SDK Upgrades (September 19, 2025)

What happened: PancakeSwap updated key software tools (v3-sdk, v2-sdk, smart-router) to better support multiple blockchains like Ethereum, BNB Chain, and Solana. These updates improve how the platform handles transactions across chains and reduce transaction fees by using new storage methods (EIP-1153) for quick accounting.

Why it matters: These improvements make cross-chain trading smoother and cheaper, which could attract more users and increase trading volume, benefiting CAKE holders. (Source)

2. Solana Integration via LayerZero (July 28, 2025)

What happened: CAKE tokens can now be transferred between Solana and eight other blockchains using Stargate’s bridge technology. This uses LayerZero’s OFT standard, allowing one-to-one transfers without any loss or slippage.

Why it matters: This expands CAKE’s reach into Solana’s large trading market, which sees over $500 million in monthly volume. While this increases token accessibility, it also means PancakeSwap faces competition from Solana-native decentralized exchanges (DEXs). Success depends on attracting users from Solana’s growing DeFi space. (Source)

3. PancakeSwap Infinity Rebrand (April 28, 2025)

What happened: PancakeSwap’s version 4 was rebranded as “Infinity,” introducing open-source code and new modular smart contracts called "Hooks." These allow developers to create custom features like adjustable fees. Additionally, a new architecture called Singleton drastically cut the gas costs for creating liquidity pools by 99%.

Why it matters: Customizable pools encourage innovation and can increase liquidity on the platform. Developer activity is tied to CAKE’s token burn mechanism through the Ecosystem Growth fund, which could positively impact CAKE’s value. (Source)

Conclusion

PancakeSwap is focusing on making its platform more interoperable across blockchains like Solana and Ethereum, giving developers more flexibility, and reducing transaction costs. While the SDK updates improve the current system, the Solana bridge and open-source approach aim to attract new users and developers. The key question is whether PancakeSwap’s new "Hooks" feature will help it outpace competitors like Uniswap V4.