Why did the price of CAKE go up?

PancakeSwap (CAKE) increased by 2.67% in the last 24 hours, outperforming the overall crypto market’s 2.33% rise. This growth is driven by upgrades to the BNB Chain that enhance decentralized exchange (DEX) activity, new AI-powered trading tools that use CAKE, and technical indicators suggesting positive momentum.

1. BNB Chain fee reductions – Validators proposed cutting transaction fees by 50%, making PancakeSwap more competitive.
2. Griffin AI’s TEA Turbo launch – New AI tools allow easy, natural-language DeFi trades on PancakeSwap, increasing usage.
3. Neutral RSI at 50 – Price stabilized above a key support level ($2.64), easing selling pressure.

Deep Dive

1. BNB Chain Upgrades (Positive Outlook)

Overview: Validators on the BNB Chain have suggested lowering gas fees to $0.005 per transaction, a 50% reduction, and speeding up block processing times to 450 milliseconds (source). This comes after BNB reached a new all-time high and supports PancakeSwap’s position as the leading DEX on the BNB Chain.

What this means: Lower fees make PancakeSwap more attractive to traders and liquidity providers, increasing the usefulness of CAKE. Past fee cuts (like in May 2025) led to a 140% jump in BNB Chain transactions, indicating similar potential growth.

What to watch: The outcome of the validator vote expected this week and whether PancakeSwap’s total value locked (TVL) rises with cheaper transactions.

2. AI-Driven Trading Tools (Mixed Effects)

Overview: Griffin AI introduced TEA Turbo on the BNB Chain, allowing users to perform DeFi swaps through chat commands on PancakeSwap and 1inch (source). However, a security breach involving Griffin’s GAIN token on September 25 caused $36 million in losses, briefly increasing CAKE’s trading volume.

What this means: TEA Turbo makes PancakeSwap easier to use for everyday traders, but the GAIN token hack highlights risks with new tokens. CAKE’s 24-hour trading volume ($62.4 million) is still 13% below its weekly average, showing cautious adoption.

3. Technical Rebound (Neutral)

Overview: CAKE’s price bounced back above the 61.8% Fibonacci retracement level at $2.64 after testing support near $2.33. The Relative Strength Index (RSI) is neutral at 50.17, while the Moving Average Convergence Divergence (MACD) remains bearish with a -0.0103 histogram.

What this means: Short-term traders may see the price holding above the Fibonacci level as a positive sign, but the weak MACD suggests limited upward movement without stronger trading volume. A close above $2.73 (the 50-day simple moving average) could open the way to test resistance at $2.95.

Conclusion

CAKE’s recent gains reflect optimism about BNB Chain’s efficiency improvements and new AI-powered tools, balanced by some technical uncertainty. While lower fees could help PancakeSwap grow its market share sustainably, traders should watch if CAKE can stay above $2.60 given the neutral RSI.

Key point to watch: Will CAKE break its 30-day resistance at $2.73 as the BNB Chain validator vote decision approaches?

What could affect the price of CAKE?

The future price of PancakeSwap’s CAKE token depends on changes to its tokenomics, growth in its ecosystem, and overall market mood.

1. Tokenomics 3.0 Update – Plans to reduce supply through token burns versus risks from unlocking staked tokens.
2. BNB Chain Growth – Lower transaction fees and increased decentralized finance (DeFi) activity.
3. Altcoin Market Trends – More interest in alternative cryptocurrencies could increase price swings.

Deep Dive

1. Tokenomics 3.0: Balancing Supply Cuts and Token Unlocks (Mixed Effects)

Overview:
PancakeSwap’s Tokenomics Proposal 3.0 aims to shrink the total supply of CAKE by 20% by 2030. This will happen through daily reductions in new token emissions (from 40,000 to 22,500 CAKE per day) and burning 5% of liquidity provider fees. However, a big change is the planned unlocking of about 60 million staked CAKE tokens (about 25% of all circulating CAKE) by October 2025, which could lead to increased selling pressure.

What this means:

• Positive: The accelerated token burns (about 4% deflation per year) could help increase CAKE’s value over time by reducing supply.
• Negative: The unlocking of a large amount of staked tokens might cause holders to sell quickly, potentially driving prices down. Past unlock events in 2023 coincided with a 60% drop in CAKE’s price.

2. BNB Chain Growth and Integrations (Positive Outlook)

Overview:
The BNB Chain recently cut gas fees by 50% (source) and saw a surge in perpetual futures trading volume to $21.5 billion (source). PancakeSwap dominates this chain’s decentralized exchange (DEX) market with 85% of trading volume. Additionally, new cross-chain swaps with Solana through Relay integration (source) are expanding liquidity options.

What this means:
Lower fees and increased activity on BNB Chain could boost CAKE’s use and demand as the leading DEX token on the platform. Historically, every 10% increase in BNB Chain volume has lifted CAKE’s price by about 7% (CMC data).

3. Altcoin Season and Market Sentiment (Neutral to Positive)

Overview:
The Altcoin Season Index rose 15.79% month-over-month to 66 out of 100 in September 2025, indicating more investment moving from Bitcoin to alternative cryptocurrencies. CAKE’s price has a strong 90-day correlation (0.87) with BNB, but recently CAKE dropped 8.56% over a week while BNB gained 2.3%, showing weaker momentum.

What this means:
If the altcoin rally continues, CAKE could benefit. However, current technical indicators like the Relative Strength Index (RSI) at 50.17 and Moving Average Convergence Divergence (MACD) at -0.0103 suggest weak momentum. A price move above $2.95 (the 23.6% Fibonacci retracement level) would be a positive sign for a bullish trend.

Conclusion

CAKE’s price is caught between long-term supply reductions and short-term risks from unlocking staked tokens. Growth in the BNB Chain ecosystem and shifting market interest toward altcoins add complexity. While emission cuts and token burns support long-term value, the October 2025 unlock date is a key test for the token’s price stability.

Will CAKE holders hold strong through the unlock period, or will selling pressure outweigh the benefits of deflation? Keep an eye on redemption rates and weekly burn reports for early signals.

What are people saying about CAKE?

Traders of PancakeSwap (CAKE) are torn between excitement over potential price gains and concerns about reducing the total supply. Here’s what’s trending right now:

1. Technical signals – Charts show a “golden cross” and a target price of $3.32
2. Supply cut debate – Proposal to reduce max supply by 40% sparks mixed opinions
3. Cross-chain growth – Trading volume on Solana jumps as PancakeSwap expands

Deep Dive

1. Breakout to $3.32? Positive Signs

John Morgan (@johnmorganFL) reports:
"CAKE broke through the $2.90 resistance level with a 203% increase in trading volume. If it holds above $3.18, we could see a 25% price rally."
See original post
What this means: This is a bullish signal for CAKE. The price breakout is supported by a rising Relative Strength Index (RSI) of 62.52 and expanding Bollinger Bands, both technical indicators suggesting upward momentum if $3.18 acts as a new support level.

2. Supply Cut Proposal Sparks Mixed Reactions

On the PancakeSwap Governance Forum, a proposal suggests reducing the maximum supply of CAKE tokens from 750 million to 450 million.
"Cutting the max supply by 40% could speed up deflation, but some worry it might limit future growth across different blockchains."
Forum discussion
What this means: Opinions are divided. While fewer tokens could make CAKE more scarce and potentially more valuable, some community members are concerned this might restrict PancakeSwap’s ability to incentivize users on multiple blockchains. Currently, CAKE token burns are about 513,000 tokens weekly, equivalent to $1.41 million as of August 12, 2025.

3. Solana Volume Surges, Boosting Multi-Chain Strategy

Stargate Finance (@StargateFinance) shares:
"CAKE now connects smoothly to Solana through LayerZero technology. Trading volume on Solana has surpassed $100 million, showing strong cross-chain adoption."
See original post
What this means: This is positive news for CAKE. Solana’s low transaction fees and fast processing complement PancakeSwap’s efforts to operate on multiple blockchains, expanding its reach beyond the Binance Smart Chain (BNB Chain).

Conclusion

Overall, the outlook for PancakeSwap (CAKE) is cautiously optimistic. Technical indicators suggest potential price gains, and expanding to other blockchains like Solana adds growth opportunities. However, debates about reducing the token supply create some uncertainty. Keep an eye on the $2.95 resistance level—if CAKE stays above it, the bullish trend could continue. If it falls below, some traders might take profits. The community’s decision on the supply cut will likely influence CAKE’s value in the coming months.

What is the latest news about CAKE?

PancakeSwap is expanding its reach across multiple blockchains while managing some challenges in its ecosystem. Here are the key updates:

1. Solana Cross-Chain Integration (September 22, 2025) – PancakeSwap now supports token swaps across 7 blockchains, including Solana, using Relay technology.
2. BNB Chain Fee Reduction Proposal (September 24, 2025) – Validators want to cut transaction fees in half to make the network more competitive.
3. Griffin AI Token Exploit Impact (September 25, 2025) – A large sell-off of GAIN tokens on PancakeSwap caused price swings and volatility.

In-Depth Look

1. Solana Cross-Chain Integration (September 22, 2025)

What happened:
PancakeSwap added Solana to its cross-chain swap feature through Relay, enabling users to trade tokens smoothly between Ethereum, BNB Chain, Solana, and four other blockchains. Transactions complete in under a minute, with PancakeSwap charging only its usual fees.

Why it matters:
This move strengthens PancakeSwap’s role as a hub for trading across multiple blockchains, potentially attracting users from Solana’s large ecosystem, which is valued at over $120 billion. However, PancakeSwap will face competition from Solana-native decentralized exchanges like Raydium, which handles about $767 million in daily trading volume.
(Source: Crypto Times)

2. BNB Chain Fee Reduction Proposal (September 24, 2025)

What happened:
Validators on the BNB Chain proposed cutting gas fees from $0.01 to $0.005 per transaction and speeding up block times to 450 milliseconds. This follows Binance Coin (BNB) reaching an all-time high of $1,000 and aims to compete with Solana’s low transaction costs.

Why it matters:
Lower fees could encourage more users to transact on PancakeSwap, which currently handles 85% of decentralized exchange activity on BNB Chain. When fees were cut in May 2025, daily transactions on BNB Chain jumped by 140%.
(Source: Yahoo Finance)

3. Griffin AI Token Exploit Impact (September 25, 2025)

What happened:
A security flaw in LayerZero allowed hackers to create 5 billion fake GAIN tokens. About 147 million of these were sold on PancakeSwap, causing the GAIN token price to drop 90% within 24 hours. This led to increased price swings for PancakeSwap’s native token, CAKE.

Why it matters:
Although PancakeSwap itself wasn’t hacked, this event shows the risks involved in listing new tokens. CAKE’s trading volume increased slightly by 1.1% to $60.5 million in 24 hours, but the incident may affect short-term confidence as traders use PancakeSwap to exit their positions.
(Source: Crypto.news)

Conclusion

PancakeSwap is focusing on expanding its cross-chain capabilities with Solana integration and improving cost efficiency through proposed BNB Chain fee cuts. However, it faces challenges from external risks like the Griffin AI exploit. Despite CAKE’s recent 8.5% drop over the past week, it has gained 13% over the last 90 days. The question remains whether PancakeSwap’s multichain approach can overcome concerns about risky tokens in decentralized finance.

What is expected in the development of CAKE?

PancakeSwap’s roadmap focuses on expanding across multiple blockchains, improving user experience, and growing its ecosystem. Key upcoming projects include:

1. Crosschain veCAKE Expansion (Q4 2025) – Allowing governance voting across different blockchain networks
2. Web3 Quest Platform (Q4 2025) – A gamified system to engage users with rewards
3. UI/UX Revamp (Ongoing) – Enhancing the platform with a mobile-first design

Deep Dive

1. Crosschain veCAKE Expansion (Q4 2025)

Overview: PancakeSwap plans to extend veCAKE, its governance token locked for voting power, to blockchains beyond Ethereum-compatible ones, such as Solana and Aptos. This means users who stake CAKE can influence decisions and liquidity incentives across multiple networks.

What this means:

• Positive: This increases the usefulness of CAKE as a governance token and may attract users who want a say in the platform’s future.
• Challenge: Coordinating voting across different blockchains is technically complex and could cause delays.

2. Web3 Quest Platform (Q4 2025)

Overview: This new feature will let users complete tasks on the blockchain—like trading or providing liquidity—to earn rewards. PancakeSwap is partnering with projects like Privasea_ai to offer privacy-focused challenges (PancakeSwap X post).

What this means:

• Positive: Encourages users to stay active and helps generate revenue through partnerships.
• Uncertain: Success depends on how appealing the rewards are compared to other platforms.

3. UI/UX Revamp (Ongoing)

Overview: PancakeSwap is redesigning its interface to make it faster and easier to use, especially on mobile devices. Updates include support for cross-chain swaps on Solana through Relay (CoinDesk).

What this means:

• Positive: Simplifies the experience for everyday users and fits well with BNB Chain’s low transaction fees.
• Key metric: Watch for growth in active users, which currently exceeds 5 million per month.

Conclusion

PancakeSwap is focusing on making its platform work seamlessly across different blockchains while improving how users interact with it. Although there are risks in implementing these technical upgrades, success could increase CAKE’s value and help PancakeSwap stay competitive.

The big question: How will PancakeSwap balance introducing new features while keeping its core automated market maker (AMM) liquidity strong?

What updates are there in the CAKE code base?

PancakeSwap has been focusing on expanding across multiple blockchains, simplifying how governance works, and phasing out older systems.

1. veCAKE Sunset (April 2025) – PancakeSwap ended veCAKE staking and governance features, now directing fees to burn CAKE tokens.
2. CAKE on Solana (July 2025) – Made it possible to transfer CAKE tokens 1:1 on the Solana blockchain using LayerZero’s OFT standard.
3. Infinity on Base (July 2025) – Launched a new multichain decentralized exchange (DEX) on Base with a more efficient system that lowers transaction costs.

Deep Dive

1. veCAKE Sunset (April 2025)

What happened: PancakeSwap stopped veCAKE staking and voting, and now 5% of revenue-sharing fees are used to burn CAKE tokens, reducing supply. Users have until October 23, 2025 to withdraw their staked CAKE.

• Technical details: The veCAKE smart contracts were removed, and the rewards system was changed to burn tokens instead.
• What this means for you: This change simplifies how CAKE works but removes some incentives for staking. If you have staked CAKE, make sure to redeem it before the deadline to avoid losing access (Source).

2. CAKE on Solana (July 2025)

What happened: CAKE tokens can now be moved seamlessly to Solana’s blockchain using Stargate and LayerZero’s OFT standard.

• Technical details: This uses a 1:1 minting and burning process with no slippage, running on Solana’s mainnet.
• What this means for you: This is a positive development for CAKE, as it increases its usefulness by connecting it to Solana’s fast and low-cost network, improving liquidity across more than eight blockchains (Source).

3. Infinity on Base (July 2025)

What happened: PancakeSwap launched Infinity on Base, Coinbase’s Layer 2 network, with new technology to reduce transaction costs.

• Technical details: By using Singleton contracts and Flash Accounting, gas fees for creating liquidity pools dropped by 99%.
• What this means for you: This upgrade makes PancakeSwap more scalable and attractive for developers, offering customizable fee options that could boost CAKE’s growth (Source).

Conclusion

PancakeSwap is focusing on making CAKE more useful across different blockchains like Solana and Base, while also simplifying its token system by ending veCAKE staking. These changes improve long-term potential but may reduce short-term staking demand. The big question is: Will the growing trading volume on Base’s DEX make up for the drop in staking?