Why did the price of CAKE fall?
PancakeSwap (CAKE) dropped 1.77% in the last 24 hours, underperforming the overall crypto market, which gained 0.49%. The main reasons are:
- BNB Memecoin Crash – Memecoins on the BNB Chain fell sharply by 60–95%, causing PancakeSwap’s trading volume to shrink.
- Technical Breakdown – CAKE’s price fell below important moving averages, with indicators showing it’s oversold.
- Market Sentiment Shift – Indicators show investors moving money from altcoins like CAKE to safer assets like Bitcoin.
Deep Dive
1. BNB Memecoin Collapse (Negative Impact)
What happened:
Memecoins on the BNB Chain, such as HODL and SAFU, lost 60–95% of their value after Binance’s founder, CZ, clarified that his tweets were not endorsements (Yahoo Finance). This caused liquidity on PancakeSwap, the main decentralized exchange (DEX) on BNB Chain, to drop significantly. For example, wrapped BNB (WBNB) liquidity fell to $35 million from a fully diluted valuation of $1.6 billion.
Why it matters:
In October, the memecoin craze drove $30 billion in trading volume on PancakeSwap. The crash reduced fee income (which helps burn CAKE tokens) and led to panic selling among traders involved with BNB-related assets.
What to watch:
Keep an eye on BNB Chain’s 24-hour DEX trading volumes, which have dropped from $80 billion in September to $19 billion now. If liquidity stays low, CAKE’s price recovery could be delayed.
2. Technical Downtrend (Bearish Signals)
What happened:
CAKE’s price fell below its 7-day simple moving average (SMA) of $3.52 and 30-day SMA of $2.93. The Relative Strength Index (RSI) dropped to 36.4, close to the oversold level of 30, and the MACD indicator turned negative, signaling downward momentum.
Why it matters:
Technical traders likely sold their positions as the price broke below a key support level at $2.85. The next support level is at $2.38, based on Fibonacci retracement, while resistance is expected between $3.18 and $3.51.
3. Shift Away from Altcoins (Mixed Impact)
What happened:
Bitcoin’s market dominance rose to 59.67%, up 1.24% over the week, while the Altcoin Season Index dropped to 34, its lowest since April 2025. Fear in the market increased, leading to more selling pressure on mid-cap tokens like CAKE.
Why it matters:
CAKE’s price fell 18.85% over the week, more than the overall crypto market’s 10.48% drop, showing it’s more sensitive to speculative trading. However, CAKE still gained 10.57% over the past 30 days, indicating it has stronger fundamentals compared to pure memecoins.
Conclusion
CAKE’s recent price drop is due to the collapse of BNB Chain memecoins, technical breakdowns, and a general market shift toward Bitcoin as a safer asset. Despite this, CAKE maintains long-term value through token burns and plans for multi-chain growth. Traders should watch if PancakeSwap can regain trading volume after the crash.
Key levels to watch: Can CAKE hold the $2.74 pivot point, or will it drop to the $2.38 Fibonacci support? Also, monitor BNB Chain’s DEX volumes for signs of liquidity returning.
What could affect the price of CAKE?
CAKE’s price is currently caught between two forces: the risk of more tokens being sold as locked tokens become available, and the ongoing reduction of total tokens through burning.
- Tokenomics 3.0 Unlocks – A 6-month period for redeeming unlocked tokens ends in October 2025, which could increase selling pressure.
- BNB Chain Volatility – A recent crash in popular meme coins on the BNB Chain may lower trading activity on PancakeSwap.
- Deflation Momentum – PancakeSwap plans to burn 4% of CAKE tokens annually, aiming to reduce the total supply by 20% by 2030.
Deep Dive
1. Tokenomics 3.0 Unlocks (Short-Term Bearish)
Overview:
In April 2025, PancakeSwap’s new Tokenomics 3.0 policy unlocked about 60 million staked CAKE tokens. Users now have a 6-month window, ending October 23, 2025, to redeem these tokens. Some community members, like Bethoveen, worry that many holders might sell their tokens immediately after unlocking, which could increase supply and push prices down (Forum).
What this means:
In the short term, expect some downward pressure on CAKE’s price as holders may sell unlocked tokens. However, PancakeSwap is also reducing daily token emissions (from 40,000 to 22,500 CAKE per day) and increasing token burns, which could help balance out this selling pressure over time.
2. BNB Chain Ecosystem Health (Mixed Impact)
Overview:
The BNB Chain recently saw a significant crash in meme coins, with losses between 60% and 95%. This, combined with Binance shifting its focus within the BNB ecosystem, has led to a drop in PancakeSwap’s trading volume. Decentralized exchange (DEX) volume fell to $19 billion, down 65% in one week after the crash (AMB Crypto).
What this means:
CAKE’s value is closely linked to the health of the BNB Chain. While BNB itself has rallied 40% since September 2025, the reduced trading activity on PancakeSwap could slow down the burning of CAKE tokens and reduce fee revenue.
3. Deflation Mechanics (Long-Term Bullish)
Overview:
Tokenomics 3.0 aims to reduce CAKE’s total supply by about 4% annually through token burns. The proposal increased the share of fees burned from 10% to 15%. Currently, PancakeSwap burns around 500,000 to 600,000 CAKE tokens weekly, worth approximately $1.2 million to $1.5 million (PancakeSwap Burn Dashboard).
What this means:
If trading volumes pick up again, the higher burn rate could significantly reduce the circulating supply of CAKE (currently about 344 million tokens), potentially increasing the token’s value due to scarcity.
Conclusion
CAKE faces short-term challenges from token unlocks and BNB Chain volatility but has promising long-term potential thanks to its deflationary tokenomics. Traders should watch how many tokens are redeemed after October 2025 and whether the BNB ecosystem stabilizes. The key question remains: Will CAKE’s token burns outpace the selling pressure from unlocked tokens?
What are people saying about CAKE?
Social conversations around PancakeSwap (CAKE) are swinging between excitement over a potential price breakout and concerns about resistance levels. Here’s what’s trending:
- A symmetrical triangle pattern suggests a possible price jump between $3.39 and $4.29
- The launch of Infinity v4 on the Base Network is driving positive stories about CAKE’s usefulness
- The $2.95 resistance level is testing investor patience as trading volume decreases
Deep Dive
1. @johnmorganFL: Technical breakout setup looks promising
"CAKE is baking a breakout! A move above $2.64 could send it to $3.39–$4.29 with solid fundamentals."
– @johnmorganFL (3.2M followers · 12.7K impressions · 2025-05-29 05:24 UTC)
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What this means: This is a positive sign for CAKE. The symmetrical triangle pattern often signals a strong price rally ahead, especially when supported by solid factors like growth in the BNB Chain and token burning (which reduces supply).
2. @PancakeSwap: Base Network integration brings mixed results
"Infinity v4 launched on Base (Coinbase’s L2), driving CAKE utility as Base’s DEX volume hit $1.6B."
– @PancakeSwap (1.8M followers · 45K impressions · 2025-07-23 16:34 UTC)
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What this means: This is a mixed signal for CAKE. Expanding to multiple blockchains can increase adoption, but the Base Network (a layer 2 solution from Coinbase) needs to grow faster than competing decentralized exchanges (DEXs) to keep the momentum going.
3. @Altcoin1hunter: Resistance at $2.95 looks challenging
"CAKE rejected at $2.95 again – liquidity zones at $2.7–$2.8 look shaky without volume support."
– @Altcoin1hunter (89K followers · 3.1K impressions · 2025-08-04 14:21 UTC)
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What this means: This is a warning sign for CAKE. The price has struggled to break above $2.95 multiple times, and low trading volume suggests weak buying interest. If Bitcoin (BTC) weakens, CAKE could fall back to the $2.50 support level.
Conclusion
Overall, opinions on CAKE are mixed. There’s potential for a technical breakout, but resistance at $2.95 and fluctuating trading volume create uncertainty. The Infinity v4 launch on Base and ongoing token burns offer fundamental support, but the $2.95 price point remains a key test for upward momentum. Keep an eye on the RSI(7) indicator, currently at 62.52, as it may signal if the asset is becoming overbought and due for profit-taking.
What is the latest news about CAKE?
PancakeSwap is managing the ups and downs of memecoin trading while expanding its reach across multiple blockchains. Here’s what’s new:
- BNB Memecoin Crash (October 10, 2025) – A huge $18 billion trading volume hides risks as memecoins drop by 95%.
- Crosschain Expansion to Solana (September 29, 2025) – CAKE now connects with 7 blockchains, making token swaps smoother.
- $1 Billion BNB Builder Fund (October 9, 2025) – Grants are available to support DeFi and AI projects on PancakeSwap’s network.
Deep Dive
1. BNB Memecoin Crash (October 10, 2025)
Overview:
The excitement around memecoins on the BNB Chain came crashing down after Binance’s founder, CZ, clarified that his tweets were not investment advice. This caused tokens like $HODL and $BROCCOLI to lose 60% to 95% of their value. PancakeSwap saw a massive $18 billion in trading volume within 24 hours during this frenzy, but actual liquidity was low — for example, Wrapped BNB (WBNB) pools only held about $35 million compared to a $1.6 billion fully diluted valuation (FDV).
What this means:
This crash shows that PancakeSwap’s trading activity heavily depends on speculative hype, which makes it vulnerable when market sentiment changes suddenly. While the high trading volume temporarily increases fee burns (which can reduce token supply), ongoing low liquidity could lead to more price swings and instability. (AMB Crypto)
2. Crosschain Expansion to Solana (September 29, 2025)
Overview:
PancakeSwap has added Solana to its network through a technology called Relay. This means CAKE tokens can now be moved quickly across 7 different blockchains, including BNB, Ethereum, and Arbitrum. The update also introduced a new feature called fee-earning limit orders, where 0.1% of completed trades are shared back with users — a first for on-chain trading platforms.
What this means:
This expansion makes CAKE more useful across multiple blockchain networks and could attract users from Solana’s $3.3 billion decentralized finance (DeFi) market. The new limit order feature encourages users to trade more, benefiting both them and PancakeSwap. However, how well this works depends on how active and stable the Solana ecosystem remains. (PancakeSwap Blog)
3. $1 Billion BNB Builder Fund Launch (October 9, 2025)
Overview:
YZi Labs announced a $1 billion fund to support developers building on the BNB Chain. They are offering grants up to $500,000 for projects focused on DeFi and artificial intelligence (AI). PancakeSwap, which handled over $6 billion in daily trading volume on BNB Chain in October, could benefit from this boost in ecosystem development.
What this means:
This fund aims to bring new projects and liquidity to PancakeSwap, helping it grow. However, success depends on attracting high-quality developers and competing with other popular blockchain platforms like Solana and Ethereum Layer 2 solutions. (NullTX)
Conclusion
PancakeSwap is balancing growth efforts—like adding Solana bridges and launching a builder fund—with the challenges of memecoin-driven market swings. While features like token burns and crosschain access strengthen its foundation, the heavy influence of retail speculation on BNB Chain remains a risk. The big question: Can PancakeSwap move beyond short-term trading spikes to create lasting stability and value for CAKE?
What is expected in the development of CAKE?
PancakeSwap’s roadmap focuses on expanding across multiple blockchains, improving user experience, and driving innovation in decentralized finance (DeFi), though no exact dates are set.
- Crosschain veCAKE Expansion (Q3 2024) – Making governance and rewards available on several blockchains.
- Web3 Quest Platform (Q3 2024) – A game-like system where users complete tasks on the blockchain to earn rewards.
- UI/UX Revamp (Q3 2024) – A redesigned, easier-to-use interface.
In-Depth Look
1. Crosschain veCAKE Expansion (Q3 2024)
What it is: This update will allow users to stake CAKE tokens on different blockchains like Ethereum and BNB Chain. Staking helps users participate in governance (decision-making) and earn extra rewards.
Why it matters: This could increase demand for CAKE tokens and reduce the number available for trading, which is generally positive for the token’s value. However, adoption on newer blockchains might take longer than expected.
2. Web3 Quest Platform (Q3 2024)
What it is: A new feature that turns using PancakeSwap into a game. Users complete tasks such as trading or adding liquidity to earn rewards.
Why it matters: This could encourage more people to use PancakeSwap regularly. Success depends on how appealing the rewards are and how it compares to similar platforms like Galxe.
3. UI/UX Revamp (Q3 2024)
What it is: PancakeSwap will update its website and app to make them simpler and more user-friendly, especially on mobile devices. It will also add real-time data and reduce steps needed to complete transactions.
Why it matters: A better user experience can attract more everyday users, especially in growing markets. However, there’s a chance of technical issues during the update that could temporarily affect user confidence.
Conclusion
PancakeSwap is focusing on making its platform work smoothly across different blockchains, keeping users engaged, and making the experience easier for everyone. While the timeline isn’t fixed, these improvements could help CAKE become a key player in the multichain DeFi space. For more details, keep an eye on updates about v4 DEX enhancements and how well crosschain veCAKE is adopted.
What updates are there in the CAKE code base?
PancakeSwap has upgraded its platform to improve cross-chain trading, automate fee earnings, and enhance its software tools.
- Fee-Earning Limit Orders (September 29, 2025) – Users now automatically earn a 0.1% fee on completed limit orders, paid directly to their wallets without any extra steps.
- Cross-Chain Swaps on Solana (September 29, 2025) – PancakeSwap added Solana to its list of supported blockchains, allowing asset transfers across seven different chains.
- v3 SDK Update (September 23, 2025) – Fixed price display issues and updated software dependencies to make swaps smoother and more reliable.
In-Depth Look
1. Fee-Earning Limit Orders (September 29, 2025)
What’s new? Users now earn 0.1% of the value every time their limit order is filled. This payment happens automatically on the blockchain, so there’s no need to manually claim rewards or use bots.
This feature uses PancakeSwap’s Infinity system for on-chain execution, replacing an older system that was powered by ORBS. The fees are calculated transparently for each completed order.
Why it matters: This is good news for PancakeSwap’s native token, CAKE, because it encourages more people to use limit orders. More trading activity could lead to higher fee burns, which reduces the total supply of CAKE. Traders benefit by earning passive income without extra effort.
(Source)
2. Cross-Chain Swaps on Solana (September 29, 2025)
What’s new? PancakeSwap now supports cross-chain swaps with Solana, expanding its network to seven blockchains including BNB Chain and Ethereum. This is done through Relay, which uses LayerZero technology to bridge assets like CAKE.
This setup reduces the need for third-party bridges and allows transactions to settle almost instantly, with clear fee information shown to users.
Why it matters: This update increases PancakeSwap’s flexibility and strengthens its position as a multi-chain platform. However, its impact on CAKE depends on how widely Solana is adopted by users.
(Source)
3. v3 SDK Update (September 23, 2025)
What’s new? The PancakeSwap development kit (@pancakeswap/v3-sdk) was updated to version 3.9.7. This fixed issues with price displays and updated related software packages to ensure consistent pricing across different blockchains.
These improvements are important for accurate cross-chain swaps and help developers build better tools.
Why it matters: While this update doesn’t directly affect CAKE’s value, it improves the overall user experience by making swaps more reliable and reducing technical issues.
(Source)
Conclusion
PancakeSwap is focusing on making cross-chain trading easier and automating fee rewards, which fits well with its goal of reducing CAKE’s supply over time. The new Infinity architecture and Solana integration show a clear effort to attract more users and grow decentralized finance (DeFi) adoption. It will be interesting to see how these changes influence CAKE’s burn rate as trading volume increases across multiple blockchains.