Why did the price of CAKE fall?

PancakeSwap (CAKE) dropped 1.56% in the last 24 hours, underperforming the overall crypto market, which gained 1.4%. This decline is driven by negative technical signals, cautious sentiment around altcoins, and profit-taking following recent growth in the PancakeSwap ecosystem.

1. Technical Signals – Bearish momentum and broken support levels
2. Altcoin Sentiment – Investors shifting focus to Bitcoin amid market caution
3. Post-Partnership Effects – Initial excitement fades after Ondo Finance alliance

In-Depth Analysis

1. Technical Momentum Turns Bearish (Mixed Impact)

Summary: CAKE’s price fell below its 30-day moving average ($3.06) and a key support level at $2.75. The MACD indicator, which helps identify momentum, shows a bearish signal. The Relative Strength Index (RSI) is neutral at 45.17 but aligns with a recent 7-day downward trend of 2.84%.

What this means: Losing the $2.75 support level, which now acts as resistance, suggests short-term traders are exiting positions to limit losses. CAKE faces resistance near $3.91 (based on Fibonacci retracement levels). If it fails to rise above $2.85, the price could drop further toward $2.38.

What to watch: A daily close above $2.85 would challenge the current bearish trend and could signal a recovery.

2. Altcoin Sentiment Stalls (Bearish Impact)

Summary: The Fear & Greed Index, which measures market sentiment, is at 32 out of 100, indicating “Fear.” Bitcoin dominance remains high at 59.14%, showing investors prefer Bitcoin over alternative cryptocurrencies like CAKE. Although CAKE’s 24-hour trading volume increased by 9.47% to $236 million, the turnover ratio (volume relative to market cap) is low at 0.25, signaling weak buying conviction.

What this means: Investors are favoring Bitcoin and stablecoins, reducing interest in mid-sized altcoins such as CAKE. Even though the BNB Chain recently hit a $2 trillion milestone in decentralized exchange (DEX) volume (Binance News), CAKE’s position as the top DEX token on the chain hasn’t translated into price gains.

3. Profit-Taking After Partnership Announcement (Neutral Impact)

Summary: CAKE’s price dipped despite PancakeSwap joining Ondo Finance’s Global Markets Alliance on October 21, a move aimed at expanding tokenized assets. While this partnership could enhance CAKE’s long-term value, it wasn’t enough to overcome broader market pressures.

What this means: The recent price drop suggests traders sold off after the news, taking profits following CAKE’s 47% gain over the past year. Weekly token burns of 566,000 CAKE (PancakeSwap) have not yet reduced selling pressure, as the circulating supply remains high at 342 million CAKE.

Conclusion

CAKE’s recent decline reflects a combination of technical weakness, cautious investor sentiment toward altcoins, and profit-taking after positive developments. While PancakeSwap’s strong position on the BNB Chain and ongoing token burns provide some support, reclaiming the $2.85 level is crucial for a bullish turnaround.

Key to watch: Will CAKE hold above its 200-day exponential moving average ($2.61) as Bitcoin continues to dominate? Keep an eye on BNB Chain activity and CAKE burn rates for signs of a potential reversal.

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What could affect the price of CAKE?

CAKE’s price is currently caught between two forces: the long-term benefits of reducing supply and the short-term risks of more tokens entering the market.

1. Tokenomics Changes (Mixed Effects)
   Burning tokens reduces supply, but unlocking a large amount of CAKE could increase selling pressure.
2. Growth of BNB Chain (Positive)
   Increased trading and new partnerships boost CAKE’s usefulness.
3. Market Mood (Negative)
   Overall cautious sentiment in crypto and Bitcoin’s dominance limit gains for altcoins like CAKE.

In-Depth Look

1. Tokenomics 3.0: Supply Reduction or Market Flood? (Mixed Effects)

What’s happening:
PancakeSwap’s new tokenomics plan aims to reduce CAKE’s supply by 4% annually by cutting daily token emissions by 44% (from 40,000 to 22,500 CAKE) and burning fees collected. However, if approved, about 60 million staked CAKE tokens will become available immediately, which could lead to increased selling.

What this means:

• Positive: The faster token burns could reduce supply by 20% by 2030, potentially increasing CAKE’s value over time.
• Negative: The sudden release of a large number of tokens, especially from partners like CakePie (which holds 25% of veCAKE), might cause selling pressure. In the past, CAKE’s price dropped 50% after similar staking unlocks in 2023.

2. BNB Chain’s Growing Ecosystem (Positive)

What’s happening:
BNB Chain’s decentralized exchange (DEX) trading volume recently surpassed $2 trillion, with PancakeSwap leading the way. New projects like BPN’s $50 million payment system and Robinhood adding BNB support could bring more users and liquidity to CAKE.

What this means:

• More people using BNB Chain means higher demand for CAKE, the chain’s main DEX token.
• Partnerships with platforms like Ondo Finance, which tokenizes real-world assets like stocks and ETFs, could expand CAKE’s use cases beyond just crypto trading.

3. Overall Market Sentiment & Technical Signals (Negative)

What’s happening:
The crypto fear and greed index is low at 32, indicating fear, and Bitcoin controls 59.25% of the market. CAKE’s technical indicators like RSI (45.17) and MACD (-0.085) show weak momentum. The $2.75 price level is acting as resistance.

What this means:

• Investors are favoring Bitcoin over altcoins like CAKE right now.
• If CAKE falls below $2.38 (a key Fibonacci level), it could drop another 15% to around $2.00 support.

Conclusion

CAKE’s future depends on balancing supply reduction with the risk of token unlocks causing sell-offs. While BNB Chain’s growth and token burns offer positive potential, short-term risks and cautious market sentiment remain challenges. The key question is: Will the cuts in token emissions outweigh the selling pressure from newly unlocked tokens? Keep an eye on how quickly tokens are redeemed and the overall health of BNB Chain as important signals.

What are people saying about CAKE?

The PancakeSwap (CAKE) community is torn between hopeful optimism about its shrinking supply and concerns about the token being overbought. Here’s what’s trending right now:

1. Expansion on Base network sparks bullish bets – CAKE’s upgrade to work across multiple blockchains is boosting hopes for wider use.
2. Stakers face an October 23 deadline – If you don’t withdraw your staked CAKE by then, your tokens might be locked permanently.
3. Golden cross vs. RSI 80 debate – Traders are split on whether strong momentum outweighs signs that CAKE might be overbought.

Deep Dive

1. @StargateFinance: CAKE goes multi-chain on Solana – bullish news

“Move $CAKE [...] via Stargate between 8 chains with zero slippage”
– @StargateFinance (283k followers · 12.4k impressions · 2025-07-28 13:30 UTC)
View original post
What this means: This is good news for CAKE because allowing it to move easily across multiple blockchains increases its usefulness in decentralized finance (DeFi). This can lead to more people using CAKE for trading and governance, which may boost demand.

2. @PancakeSwap: Staking withdrawal deadline – neutral impact

“Deadline to withdraw staked CAKE: Oct 23, 2025, 08:00 AM UTC”
– @PancakeSwap (4.1M followers · 89k impressions · 2025-07-31 05:15 UTC)
View original post
What this means: This is neutral in the short term. Some stakers might sell their CAKE before the deadline, which could put downward pressure on the price. However, if many tokens remain locked after the deadline, it could reduce the available supply and support the price over time.

3. @johnmorganFL: Price breakout above $2.75 – mixed signals

“Volume explodes – CAKE eyes $3.32 on liquidity surge”
– @johnmorganFL (217k followers · 18.3k impressions · 2025-07-28 16:33 UTC)
View original post
What this means: The price breaking above $2.75 is a positive sign, showing strong buying interest. But the Relative Strength Index (RSI), a measure of how overbought an asset is, is at 80.3, which suggests CAKE might be due for a price pullback soon. Traders are cautious about potential profit-taking near the $2.95 resistance level.

Conclusion

The overall outlook on PancakeSwap (CAKE) is optimistic but cautious. Upgrades to its infrastructure on networks like Base and Solana, along with ongoing token burns (reducing supply by 2.5 million CAKE in July), support positive sentiment. However, overbought technical signals and the upcoming staking withdrawal deadline could cause price swings. Keep an eye on the $2.73 support level after October 23—if it holds, it could signal renewed buying interest.

What is the latest news about CAKE?

PancakeSwap is heating up with new partnerships and product improvements, driving innovation in decentralized finance (DeFi). Here are the latest highlights:

1. BNB Chain Teams Up with BPN (October 21, 2025) – A $50 million investment to create a multi-stablecoin payment system, integrating PancakeSwap for on-chain trading.
2. Joins Ondo Finance’s Global Market Alliance (October 21, 2025) – A group effort to standardize tokenized stocks and ETFs, using CAKE for liquidity.
3. CAKE.PAD Launch Breaks Records (October 15, 2025) – WhiteBridge Network’s token sale oversubscribed by over 20,000% in just one hour.

Deep Dive

1. BNB Chain Teams Up with BPN (October 21, 2025)

What’s happening:
BNB Chain partnered with Better Payment Network (BPN) to build a fast payment system using stablecoins like BBRL (Brazilian Real) and EURI (Euro). With a $50 million investment through YZi Labs, the goal is to cut cross-border payment fees from 2% down to 0.3% and reduce settlement times to just a few hours. PancakeSwap will play a key role by enabling trading and arbitrage on this platform.

Why it matters:
This partnership is a big win for CAKE because it increases its use in global payments and strengthens its role within the BNB Chain ecosystem. More institutional use could boost demand for CAKE liquidity pools. (Yahoo Finance)

2. Joins Ondo Finance’s Global Market Alliance (October 21, 2025)

What’s happening:
PancakeSwap joined a coalition of over 30 companies, including Chainlink and CoinMarketCap, led by Ondo Finance. The goal is to create standards for tokenized real-world assets like stocks and ETFs. PancakeSwap will support trading of these tokenized assets using CAKE liquidity pools.

Why it matters:
This move puts CAKE at the crossroads of traditional finance (TradFi) and DeFi, potentially attracting new users interested in regulated real-world assets. However, PancakeSwap will face competition from centralized platforms offering similar products, which could affect trading fees. (Crypto.News)

3. CAKE.PAD Launch Breaks Records (October 15, 2025)

What’s happening:
WhiteBridge Network’s token generation event (TGE) on PancakeSwap’s CAKE.PAD platform was oversubscribed by over 20,000% within one hour, selling 20 million WBAI tokens. The platform uses a deflationary model that burns CAKE tokens collected from participation fees, following Tokenomics 3.0 principles.

Why it matters:
The huge demand shows CAKE’s growing importance in launching new tokens. However, such extreme oversubscription could lead to speculative bubbles. On the positive side, ongoing token burns may reduce CAKE’s supply, potentially increasing its value as demand grows. (Daily Hodl)

Conclusion

PancakeSwap is strategically expanding into payments, institutional assets, and token launches—key areas that increase CAKE’s usefulness. While these partnerships signal growth, success will depend on balancing innovation with sustainable token economics.

Can CAKE keep its deflationary momentum going while growing across multiple blockchains?

What is expected in the development of CAKE?

PancakeSwap’s roadmap is focused on expanding across multiple blockchains, improving user experience, and forming strategic partnerships.

1. Crosschain veCAKE Expansion (Q4 2025) – Allowing users to use their locked CAKE tokens for voting power on several blockchain networks.
2. Turbo Farms on Solana (Ongoing) – Offering extra rewards in CAKE to encourage liquidity on Solana’s fast network.
3. Tab-Based Wallet Interface (Q1 2026) – A new wallet design that lets users manage multiple blockchain wallets in one place.
4. Ondo Finance Alliance (Q4 2025) – Partnering to enable trading of tokenized real-world assets like stocks and ETFs.

Deep Dive

1. Crosschain veCAKE Expansion (Q4 2025)

Overview: PancakeSwap plans to extend its veCAKE governance system to other blockchains such as Base and zkSync. This means users who lock their CAKE tokens can have voting power across different blockchain networks, building on their current multichain staking setup.
What this means: This is positive for CAKE’s usefulness because it encourages more people to lock their tokens, which can reduce the number of tokens available for trading. However, managing voting across multiple blockchains is technically challenging and could face issues.

2. Turbo Farms on Solana (Ongoing)

Overview: Since August 2025, PancakeSwap has been running Turbo Farms on Solana, offering over 50 liquidity pools with a total of 500,000 CAKE tokens as rewards over 100 days. This aims to attract traders and liquidity providers by leveraging Solana’s fast transaction speeds.
What this means: This could increase the total value locked (TVL) on PancakeSwap, which is generally good, but the impact depends on how stable Solana’s network remains. The price of CAKE might fluctuate as users claim their rewards.

3. Tab-Based Wallet Interface (Q1 2026)

Overview: PancakeSwap will introduce a new wallet interface that allows users to manage wallets from Solana, Ethereum-compatible (EVM), and Aptos blockchains all in one place. It will also support social logins like Google and Twitter (X), and enable transactions without requiring manual signing each time.
What this means: This upgrade should make it easier for new users to get started with decentralized finance (DeFi), which is a positive step for adoption. Still, ensuring strong security for these cross-chain features is essential.

4. Ondo Finance Alliance (Q4 2025)

Overview: PancakeSwap has joined Ondo Finance’s Global Markets Alliance to support trading of tokenized real-world assets (RWAs), such as stocks and ETFs. This move aligns with the growth of stablecoin liquidity on the BNB Chain, which has reached $14.7 billion.
What this means: This partnership could attract a broader range of users by offering more traditional investment options on PancakeSwap. However, regulatory approval and clarity will be important for this to succeed.

Conclusion

PancakeSwap is focusing on making its platform work seamlessly across multiple blockchains, improving how users interact with it, and bringing real-world assets into decentralized finance. While the success of these plans depends on technical execution and market conditions, CAKE’s deflationary model—over 24 million tokens burned this year—provides a solid foundation. One question to watch is how increasing Bitcoin dominance might affect platforms like PancakeSwap that focus on alternative cryptocurrencies.

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What updates are there in the CAKE code base?

PancakeSwap has rolled out major updates focused on expanding across multiple blockchains, protecting users from unfair trading practices, and making the platform easier to use.

1. Arbiter MEV Capture Hook (July 2025) – Redirects profits from certain blockchain validators to liquidity providers through clear auctions.
2. Infinity Expansion to Base (July 2025) – Introduces new types of liquidity pools and reduces transaction costs.
3. Social Login Integration (July 2025) – Lets users log in easily using Google, X, Telegram, or Discord accounts.

Deep Dive

1. Arbiter MEV Capture Hook (July 2025)

What it is: This update tackles a problem called maximal extractable value (MEV), where some blockchain validators can unfairly profit by reordering or inserting transactions. The new system redirects these profits back to the people who provide liquidity (those who supply funds to the platform) through transparent auctions. Validators bid for these profits, and the money goes to liquidity providers.
Why it matters: This builds more trust in PancakeSwap’s liquidity pools, encouraging more users to add funds. This is a positive sign for PancakeSwap’s token, CAKE. (Source)

2. Infinity Expansion to Base (July 2025)

What it is: PancakeSwap launched new features on the Base blockchain, including two types of liquidity pools—one that concentrates liquidity for better efficiency, and another that eliminates price impact on trades. The update also drastically cuts the cost of creating new pools by 99% and supports tracking multiple tokens more easily. Developers can now set up automatic fee changes based on market conditions.
Why it matters: While this upgrade improves PancakeSwap’s technical setup and lowers fees, it faces competition from other decentralized exchanges on similar blockchains. This could help increase trading activity but is neutral for CAKE’s value. (Source)

3. Social Login Integration (July 2025)

What it is: Users can now sign in to PancakeSwap using familiar social media accounts like Google, X, Telegram, or Discord. This creates secure wallets without the need to manage complicated seed phrases (a series of words used to recover wallets). It also supports transactions that don’t require manual signing, making it easier for new users to get started.
Why it matters: This lowers the barrier for people new to decentralized finance (DeFi), making PancakeSwap more accessible to mainstream users. This is a positive development for CAKE. (Source)

Conclusion

PancakeSwap’s recent updates focus on protecting users from unfair practices, improving cross-chain functionality, and simplifying access. These improvements strengthen its position as a leading decentralized exchange that operates across multiple blockchains. While CAKE’s usefulness grows with these features, wider adoption will depend on overall market conditions. The key question remains: how will PancakeSwap continue to innovate while scaling to new blockchains?