Why did the price of CAKE go up?

PancakeSwap (CAKE) jumped 32.17% in the last 24 hours to $3.52, outperforming the overall crypto market, which rose just 0.96%. This continues a strong weekly rally of 36.59%. The main reasons behind this surge include growth across multiple blockchains, the impact of BNB’s all-time high (ATH), and positive technical signals.

1. Record Q3 Growth – The platform saw $772 billion in trading volume for the quarter, up 42% from the previous quarter, with expansion on Base and Solana blockchains.
2. BNB Chain Boost – CAKE’s price rose alongside BNB reaching $1,112 (its ATH), increasing activity in the ecosystem.
3. Technical Breakout – CAKE formed an ascending triangle pattern, aiming for $4.11 if it breaks the $3.84 resistance level.
4. New Fee Features – A new limit order feature encouraged large investors (“whales”) to increase holdings by 5.8%.

Deep Dive

1. Multichain Expansion & Fundamentals (Positive Impact)

Overview: CAKE’s 24-hour trading volume surged 975% to $771 million, driven by its launch on Coinbase’s Base chain (which has $1.6 billion in daily volume) and Solana. This diversification helps PancakeSwap earn fees from multiple blockchains. In Q3 2025, the platform hit a record $772 billion in volume, a 42% increase from the previous quarter. Additionally, 15% of fees collected were burned, reducing CAKE’s total supply and making it more scarce.

What this means:

• Expanding to multiple blockchains reduces dependence on BNB Chain and attracts new users.
• Base’s low transaction fees and Coinbase’s backing could help PancakeSwap reach mainstream users.
• CAKE’s circulating supply has dropped 4.3% year-over-year due to token burns (Coinspeaker).

2. BNB Ecosystem Momentum (Positive Impact)

Overview: BNB’s price rose 6.1% to $1,108, its all-time high, which helped lift CAKE since PancakeSwap is the leading decentralized exchange (DEX) on the BNB Chain, handling $3 billion in daily volume.

What this means:

• The price of CAKE and BNB are closely linked, with a 0.89 correlation in 2025, meaning BNB’s strength brings more liquidity and interest to CAKE.
• The total value locked (TVL) on BNB Chain increased 2% to $8.16 billion, with PancakeSwap generating $1.51 million in daily fees (Yahoo Finance).

3. Technical & On-Chain Signals (Mixed Impact)

Overview: CAKE broke through a 9-month resistance level at $3.10. The Relative Strength Index (RSI) is at 65.18, which is neutral, and the Moving Average Convergence Divergence (MACD) shows a bullish crossover. However, futures funding rates turned slightly negative (-0.0017%), suggesting some traders may be taking profits.

What this means:

• Technical analysis points to potential price targets between $3.77 and $4.11 if CAKE can break above $3.84.
• There is a bearish warning as open interest (the number of active futures contracts) dropped 6.75% despite the price rising, indicating some traders might be closing positions.
• It’s important for CAKE to stay above $3.22 (a key Fibonacci retracement level) to keep the momentum going.

Conclusion

CAKE’s recent price surge is driven by strong momentum in the BNB ecosystem, growth across multiple blockchains, and positive technical patterns. While the 32% jump may be a bit stretched in the short term, PancakeSwap’s solid fundamentals—such as a $2.5 billion TVL and 143 million users—along with ongoing fee burns, support its long-term growth potential.

Key watch: Will CAKE hold above $3.46 (the 127.2% Fibonacci extension) during U.S. trading hours today? Closing above this level would confirm the bullish trend.

What could affect the price of CAKE?

The future price of PancakeSwap (CAKE) depends on changes to its tokenomics, the growth of the BNB Chain, and overall market mood.

1. Tokenomics 3.0 Update – Cutting supply vs. risks from unlocking staked tokens
2. BNB Chain Growth – Expanding ecosystem and new ways to earn fees
3. Technical Trends – Positive price patterns but signs of being overbought

In-Depth Look

1. Tokenomics 3.0: Balancing Supply Cuts and Unlock Risks

What’s happening:
PancakeSwap’s new Tokenomics Proposal 3.0 plans to reduce the total CAKE tokens by 20% by 2030 by:

• Lowering daily token emissions from about 40,000 to 22,500 CAKE (a 44% cut).
• Using 5% of fees from version 3 pools to burn tokens, increasing the burn rate from 10% to 15%.
• Unlocking all staked CAKE immediately, which could release around 60 million tokens (about 17% of the current supply).

Why it matters:
Reducing supply through burns can increase token value over time. However, unlocking staked tokens all at once might lead to a lot of selling pressure in the short term. Past events, like a 40% price drop in 2023 after a similar unlock, show this can cause volatility. Success depends on balancing fewer new tokens entering the market with steady demand.

2. BNB Chain’s Growth and Competition in Decentralized Exchanges (DEXs)

What’s happening:
BNB’s price rally to $1,100 in 2025 helped boost activity on the BNB Chain. PancakeSwap’s trading volume hit $476 billion in Q3 (CCN). New features like fee-earning limit orders (which give a 0.1% rebate per trade) helped push CAKE’s price up 25% on October 3.

Why it matters:
As the leading DEX on BNB Chain, PancakeSwap benefits from more users and liquidity. Total value locked (TVL) is up to $8.1 billion, and stablecoin deposits increased 17% in two weeks, showing growing trust and use. Still, PancakeSwap faces competition from other platforms like Uniswap v4 and Hyperliquid.

3. Technical Analysis: Upward Trends vs. Overbought Warnings

What’s happening:
CAKE broke out of a downward wedge pattern and is now trading in an upward channel, with potential price targets up to $4.56 (CCN). However, the Relative Strength Index (RSI) is at 73.82, indicating the token might be overbought. The Fibonacci retracement tool points to $2.44 as a key support level.

Why it matters:
A short-term price pullback is possible, but if CAKE stays above $3.84, the upward momentum could continue. Traders should watch for lower trading volumes or bearish signals from indicators like MACD, which might suggest a reversal.

Conclusion

CAKE’s price outlook is a mix of strong deflationary plans and risks from unlocking a large amount of tokens. The expanding BNB Chain and PancakeSwap’s new features, like cross-chain support, offer positive momentum. However, the success of Tokenomics 3.0 will depend on whether holders choose to keep their tokens for long-term gains or sell for quick profits. Keep an eye on token redemption rates and burn statistics after the new tokenomics take effect.

What are people saying about CAKE?

PancakeSwap’s CAKE token is gaining momentum, with traders setting their sights on a $5 price target. Here’s what’s driving the excitement:

1. Breakout patterns – Charts show strong signals like symmetrical triangles and golden crosses.
2. Multi-chain growth – Integration with multiple blockchains is expanding CAKE’s use cases.
3. Token burns – Regular token burns are helping reduce supply, supporting price stability.

Deep Dive

1. @johnmorganFL: Symmetrical Triangle Breakout – Positive Signal

"CAKE ended an 841-day downtrend with a 16.99% price jump. Technical analysis points to a possible $40 target if buying interest continues."
– @johnmorganFL (89k followers · 1.2M impressions · July 28, 2025, 10:10 AM UTC)
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What this means: Breaking a long-term downtrend is a strong positive sign for CAKE. However, the $40 target represents a very optimistic scenario and depends on sustained trading volume.

2. @PancakeSwap: Base Chain Integration – Positive Outlook

"Infinity v4 on Base reached $7.82 billion in trading volume in August. CAKE now supports decentralized exchange operations across 10 different blockchains."
– @PancakeSwap (2.1M followers · 4.8M impressions · August 8, 2025, 3:07 PM UTC)
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What this means: This is good news for CAKE because expanding onto popular blockchains like Base (Coinbase’s network) can increase transaction fees and demand for governance tokens.

3. CMC Community: Token Burn Rate – Neutral Impact

"Weekly burns removed 587,000 CAKE tokens (worth about $1.36 million). Total supply has decreased by 4.95% since 2023 thanks to the Ultrasound CAKE burn model."
– @PancakeSwap (2.1M followers · 3.1M impressions · June 24, 2025, 6:00 AM UTC)
View original post
What this means: While token burns reduce supply, CAKE’s overall inflation rate remains slightly positive (+0.89% annually) until late 2025, so the impact on price is balanced for now.

Conclusion

The overall outlook for CAKE is optimistic but cautious. Technical indicators and cross-chain expansion support growth, but resistance at $3.84 (the 2025 high) and doubts about maintaining recent volume spikes remain challenges. Keep an eye on the CAKE/BNB correlation this week—since BNB controls 58% of the market, its performance, especially if Bitcoin stabilizes, could influence CAKE’s price movement.

What is the latest news about CAKE?

CAKE heats up with new 2025 highs as BNB surges and fresh features increase demand – here’s the latest update:

1. CAKE Hits $3.58 on BNB Rally (October 3, 2025) – Price jumps 25% as activity on the BNB Chain spikes.
2. Fee-Earning Limit Orders Launch (September 30, 2025) – Users can now earn 0.1% fees on trades, encouraging big investors to buy more.
3. Q3 Volume Hits $476 Billion (October 2, 2025) – Record trading volume supports a strong technical breakout.

In-Depth Look

1. CAKE Hits $3.58 on BNB Rally (October 3, 2025)

Summary:
CAKE’s price climbed to $3.58, its highest since 2024, as BNB surged 17% in one week, reaching a new all-time high of $1,112. This growth was fueled by an $8.16 billion increase in total value locked (TVL) on the BNB Chain and over $3 billion in decentralized exchange (DEX) trading volume in just four days.

What this means:
BNB’s strong performance suggests investors are moving money into projects on the BNB Chain. PancakeSwap, as the chain’s leading DEX, is benefiting from this influx, with CAKE’s 24-hour trading volume jumping 528% to $619 million. However, the overall TVL on BNB Chain only grew 2% in 24 hours, indicating that much of the price action may be driven by short-term speculation rather than steady growth. (Crypto.News)

2. Fee-Earning Limit Orders Launch (September 30, 2025)

Summary:
PancakeSwap rolled out a new feature called fee-earning limit orders. This lets traders earn a 0.1% fee whenever their limit orders are executed. The feature generated $410 million in trading volume within three days.

What this means:
This update encourages more advanced traders to add liquidity to the platform. Over three days, 17 million CAKE tokens were bought compared to 14 million sold. Still, net spot flows turned positive by $2.89 million, suggesting some traders are taking profits. The long-term success of this feature depends on whether it continues to attract users beyond the initial excitement. (AMBCrypto)

3. Q3 Volume Hits $476 Billion (October 2, 2025)

Summary:
PancakeSwap’s trading volume for the third quarter reached $476 billion, a 36% increase from the previous quarter and the highest since 2021. CAKE’s price broke out of a downward wedge pattern, with a potential target of $4.56 if it can surpass resistance at $3.84.

What this means:
The surge in volume highlights PancakeSwap’s strong position in BNB Chain decentralized finance (DeFi) and growing use across different blockchains. The Chaikin Money Flow indicator at 0.38 shows strong capital inflows, but the Relative Strength Index (RSI) near 69.8 warns the token might be overbought. If CAKE fails to break past $3.84, it could fall back to support around $2.44. (CCN)

Conclusion

CAKE’s recent rally is driven by BNB’s ecosystem momentum, new product features, and record trading volumes. However, it faces a key resistance level at $3.84. Traders will be watching closely to see if profits are locked in or if the price pushes higher toward $4 as deflationary token burns speed up. Keep an eye on BNB’s stability and CAKE’s daily buy/sell balance for signs of what’s next.

What is expected in the development of CAKE?

PancakeSwap is moving forward with some key updates:

1. Crosschain veCAKE Expansion (Q3 2024) – Making governance voting work across multiple blockchains.
2. Web3 Quest Platform (Q3 2024) – A game-like system where users earn rewards by completing tasks on the blockchain.
3. Multichain Perpetuals (2025) – Bringing advanced trading options to more blockchains.

In-Depth Look

1. Crosschain veCAKE Expansion (Q3 2024)

What it is: This update will let users who hold veCAKE vote on important decisions not just on one blockchain, but across Ethereum, BNB Chain, and Solana. This means CAKE holders can help shape how liquidity incentives and fees work on several networks.
Why it matters: This could make CAKE more useful and keep users engaged longer by giving them more influence. But it’s a complex technical challenge, and PancakeSwap will face competition from other platforms like Uniswap.

2. Web3 Quest Platform (Q3 2024)

What it is: A new feature that turns using PancakeSwap into a game. Users complete tasks like swapping tokens or adding liquidity to earn rewards such as NFTs or CAKE tokens. It will connect with existing features like Prediction and Lottery.
Why it matters: This could attract new users and encourage more activity. However, the success depends on balancing rewards so they’re appealing but don’t hurt the overall token economy.

3. Multichain Perpetuals (2025)

What it is: PancakeSwap will expand its perpetual contracts (a type of advanced trading) to more blockchains like Base and opBNB, after already launching on BNB Chain and Arbitrum. They aim to offer up to 25x leverage and better pricing through partnerships with market makers (PancakeSwap Docs).
Why it matters: This could increase trading fees and revenue, but derivatives markets can be risky and volatile. PancakeSwap will need to stand out against strong competitors like dYdX and GMX.

Conclusion

PancakeSwap is focusing on making its platform work across multiple blockchains, engaging users with fun features, and growing its advanced trading options. These moves could help it stay among the top decentralized exchanges (DEXs). Still, challenges like technical complexity and tough competition mean it’s important to watch how well these plans are executed. Will better governance and gamification help PancakeSwap stay ahead in the crowded world of multichain DeFi?

What updates are there in the CAKE code base?

PancakeSwap’s recent updates focus on making transactions cheaper, expanding to more blockchains, and improving the user interface.

1. SDK Patches (Sept 23, 2025) – Small fixes to improve price accuracy and update software dependencies.
2. Perpetuals Upgrade (Aug 2025) – Added up to 1,000x leverage for ETH trading and introduced stock trading options.
3. Infinity on Base Launch (July 2025) – New tech reduces transaction costs dramatically on the Base network.
4. EIP-5792 Rollout (June 2025) – Combines approval and swap steps into one, cutting transaction fees.

Deep Dive

1. SDK Patches (September 23, 2025)

What happened: PancakeSwap updated several software development kits (SDKs) to fix how prices are handled and to keep software components compatible. This helps ensure smooth trading across different blockchains and avoids pricing errors.

Why it matters: This is routine maintenance that keeps PancakeSwap reliable as it grows across multiple blockchains. It doesn’t directly affect the value of CAKE tokens.

(Source)

2. Perpetuals Upgrade (August 2025)

What happened: PancakeSwap improved its ETH perpetual contracts, allowing traders to use up to 1,000 times leverage and set Take Profit orders up to 500%. They also launched stock perpetual contracts for companies like Apple (AAPL), Amazon (AMZN), and Tesla (TSLA) with 25x leverage.

Why it matters: These features attract more active traders, which can increase trading fees and benefit CAKE holders.

(Source)

3. Infinity on Base Launch (July 22, 2025)

What happened: PancakeSwap introduced “Infinity” on the Base Layer 2 network, which includes:

• Singleton Model: Combines multiple liquidity pools into one contract, cutting gas fees for creating pools by 99%.
• Flash Accounting: Tracks net balances to reduce gas fees for multiple swaps.
• Native ETH Support: Swaps using native Ethereum are 50% cheaper than using wrapped ETH.

Why it matters: Lower transaction costs make PancakeSwap more attractive to users on Base, potentially increasing trading volume and CAKE demand.

(Source)

4. EIP-5792 Implementation (June 2025)

What happened: PancakeSwap adopted EIP-5792, a new Ethereum improvement proposal that allows users to approve tokens and make swaps in a single transaction on BNB Chain, Ethereum, and Base.

Why it matters: This reduces transaction fees and the chance of failed trades, making the platform easier to use, especially for beginners.

(Source)

Conclusion

PancakeSwap is focusing on cutting transaction costs and expanding its product offerings, like leveraged trading and stock perpetuals. With CAKE’s supply down 24% since 2023 and trading volume reaching $500 million on Solana in August, these upgrades support its goal of increasing token value through deflationary mechanics. The question remains: will innovations in cross-chain liquidity drive the next big growth phase for CAKE?