What could affect the price of CAKE?

CAKE’s price is influenced by factors that reduce supply, sudden increases in available tokens, and competition from other decentralized finance (DeFi) platforms.

1. Tokenomics 3.0 Update – Emissions cut by 44% and faster token burns (Positive)
2. Unlocked CAKE Supply – 79 million tokens becoming available after staking ends (Negative)
3. BNB Chain Market Share – PancakeSwap holds 64% of revenue on BNB Chain, but faces competition (Mixed)

In-Depth Analysis

1. Tokenomics 3.0 Implementation (Positive Impact)

What’s happening:
PancakeSwap recently introduced Tokenomics 3.0, cutting daily CAKE token emissions from about 40,000 to 22,500—a 44% reduction. Additionally, 15% of fees from version 3 pools are now used to burn (destroy) tokens, up from 10% before. The goal is to reduce the total CAKE supply by 20% by 2030, aiming for a 4% annual decrease.

Why it matters:
Lower emissions mean fewer new tokens flooding the market, reducing selling pressure. More token burns also shrink the overall supply. If trading activity stays strong, this could help support or increase CAKE’s price. However, CAKE’s price has dropped 32% over the past 90 days, showing some investors are cautious about whether these changes will work as planned.

2. Impact of Unlocked CAKE Supply (Negative Impact)

What’s happening:
Staking with veCAKE ended on April 23, 2025, unlocking about 79 million CAKE tokens—roughly 24% of the tokens currently circulating. Token holders have until October 23, 2025, to claim these tokens, which could lead to ongoing selling pressure as people cash out.

Why it matters:
Large token unlocks often lead to price drops. After this announcement, CAKE’s price fell 22% within 30 days. Partners like Cakepie, involved in the SubDAO ecosystem, may face difficulties redeeming tokens, which could cause more selling and price pressure.

3. BNB Chain Dominance vs. Multi-Chain Expansion (Mixed Impact)

What’s happening:
PancakeSwap controls 64% of decentralized exchange (DEX) revenue on the BNB Chain but is reaching market saturation there. To grow, PancakeSwap is expanding to other blockchains like Solana and Base. While this can attract new users, it may weaken CAKE’s role in governance across multiple chains.

Why it matters:
Expanding to multiple blockchains could increase trading fees and revenue—Q3 2025 trading volume rose 40% quarter-over-quarter to $770 billion. However, competitors like Uniswap V4 and Raydium are also growing. For CAKE to benefit, PancakeSwap needs to maintain daily trading volumes above $1 billion to keep token burns effective.

Conclusion

CAKE’s future depends on balancing the benefits of reduced token supply with the challenges of a large unlocked token supply. Tokenomics 3.0 improves the project’s fundamentals, but the 79 million unlocked tokens and Bitcoin’s strong market position (59% dominance) create short-term challenges.

Key metric to watch: the ratio of tokens burned versus new tokens emitted—will increased burns be enough to offset tokens leaving stakers?

What are people saying about CAKE?

The PancakeSwap community is divided. Some traders are watching for a price breakout, while others worry about the token’s long-term prospects. Here’s a quick summary:

1. Traders see a potential 70% price increase if CAKE breaks above $4.00 🚀
2. The PancakeSwap team is asking users to vote on updates to their Prediction market 🥞
3. Analysts are debating whether changes to tokenomics can fix past inflation problems 📉

Deep Dive

1. @WHALES_CRYPTOt: Bullish breakout pattern spotted

“If confirmed, we could see $CAKE surge toward $4.00”
– @WHALES_CRYPTOt (1K followers · 56K impressions · 2025-12-18 13:12 UTC)
View original post
What this means: If CAKE closes above $1.85 on the daily chart (current price: $1.80), it could confirm a bullish pattern called an ascending triangle, with a target price near $4.00. However, trading volume over the last 30 days is down 23%, which may weaken this momentum.

2. @PancakeSwap: Mixed reactions to Prediction market update

“Vote in the poll below — your answers will guide our next update”
– @PancakeSwap (Official account · 2025-08-19 07:42 UTC)
View original post
What this means: The community is engaged but cautious. While user feedback is positive, the Prediction market only accounts for less than 9% of CAKE tokens burned (see July 2025 burn stats), so its impact on price is limited.

3. @EdgenTech: Concerns over tokenomics and competition

“CAKE battles legacy high emissions… competition inside BNB Chain has increased”
– @EdgenTech (2.3K followers · 169K impressions · 2025-11-28 05:37 UTC)
View original post
What this means: Despite ongoing token burns, CAKE’s circulating supply remains high at 335 million tokens. Meanwhile, other decentralized exchanges on the BNB Chain are gaining users, putting PancakeSwap’s dominant 60%+ market share at risk.

Conclusion

The outlook for CAKE is mixed. Technical indicators suggest there could be upside, but there are still concerns about the token’s structure and competition. Keep an eye on the $1.85 resistance level: breaking above it might trigger more buying, while failing to do so could continue the downward trend of about 32% this year. The big question is whether PancakeSwap’s upcoming version 4 upgrades and expansion to the Base chain can overcome these challenges.

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What is the latest news about CAKE?

PancakeSwap is balancing its deflationary token model with expansion across multiple blockchains as CAKE adapts to changes in the decentralized exchange (DEX) market. Here are the key updates:

1. CAKE.PAD Launch (October 29, 2025) – A new token launch platform that burns 100% of participation fees, helping reduce CAKE’s overall supply faster.
2. Real-World Asset (RWA) Integration (October 29, 2025) – Added over 100 tokenized stocks and ETFs through a partnership with Ondo Finance on the BNB Chain.
3. Expansion to Solana (July 28, 2025) – CAKE can now be transferred across 8 blockchains using Stargate’s zero-slippage bridge.

Deep Dive

1. CAKE.PAD Launch (October 29, 2025)

Overview:
PancakeSwap replaced its Initial Farm Offering (IFO) system with CAKE.PAD, a platform where all CAKE tokens used to participate in new token sales are permanently burned. The first two sales, Sigma.Money and WhiteBridge, were hugely popular, oversubscribed by 99,207% and 142,000%, respectively, burning over 118,000 CAKE tokens.

What this means:
This is positive for CAKE because it reduces the number of tokens in circulation, continuing a trend of 26 months of net deflation as of October 2025. The burn mechanism could reduce the annual supply by 2-4% if adoption keeps growing (PancakeSwap Blog).

2. RWA Integration (October 29, 2025)

Overview:
PancakeSwap teamed up with Ondo Finance to offer tokenized versions of popular stocks like Tesla and Apple, as well as U.S. Treasury bonds, on the BNB Chain. These assets are accessible through PancakeSwapX. In the first week, over $15 million worth of these real-world assets were traded.

What this means:
This move broadens CAKE’s use beyond just decentralized finance (DeFi) speculation, potentially attracting institutional investors. However, real-world assets currently make up less than 1% of PancakeSwap’s trading volume. The success of this initiative depends on clearer regulations around tokenized assets (Bitcoinist).

3. Expansion to Solana (July 28, 2025)

Overview:
Through Stargate Finance, CAKE was integrated into the Solana blockchain, allowing seamless 1:1 transfers across chains using LayerZero’s OFT standard. Within a month, CAKE trading volume on Solana exceeded $100 million.

What this means:
This expansion is cautiously optimistic, increasing CAKE’s presence across multiple blockchains. However, it faces strong competition on Solana, where Raydium controls 63% of DEX trading volume. The BNB Chain remains dominant, accounting for 82% of CAKE’s total value locked (TVL) of $1.68 billion (CoinMarketCap).

Conclusion

PancakeSwap is shifting from heavy token emissions to a deflationary model driven by fees, having burned 33.7 million CAKE since 2023. At the same time, it’s pursuing institutional relevance through real-world assets and expanding cross-chain liquidity. With CAKE down 32% over the last quarter but BNB Chain activity steady, the question is whether PancakeSwap’s protocol-owned liquidity and perpetual trading features can help it outperform newer decentralized exchanges.

What is expected in the development of CAKE?

PancakeSwap is moving forward with several key developments:

1. Multichain Perpetuals Expansion (2025–2026) – Launching perpetual trading on Base and opBNB blockchains.
2. v4 Upgrade & DEX Improvements (2026) – Introducing a flexible system for customizable liquidity pools.
3. Web3 Quest Platform (2026) – Creating a gamified rewards program to encourage user participation.
4. Real-World Asset (RWA) Integration Growth (2026) – Expanding tokenized stocks and ETFs across multiple blockchains.

In-Depth Look

1. Multichain Perpetuals Expansion (2025–2026)

What’s happening: PancakeSwap plans to extend its Perpetuals v2 product to the Base and opBNB blockchains. This builds on its current presence on Arbitrum and BNB Chain, aiming to capture more trading volume in the decentralized derivatives market (Roadmap).

Why it matters: This is positive news for CAKE holders because cross-chain perpetual trading could increase the platform’s fee revenue. Currently, perpetuals make up about 15% of PancakeSwap’s total income (August 2025 Recap). However, PancakeSwap faces competition from other platforms like dYdX and GMX, which could affect how widely these features are adopted.

2. v4 Upgrade & DEX Improvements (2026)

What’s happening: The upcoming v4 upgrade will introduce a modular design with “hooks”—special smart contracts that allow developers to customize how liquidity pools work. This could include features like adjustable fees or advanced order types. A detailed whitepaper is expected in 2026 (Roadmap).

Why it matters: This upgrade could attract more advanced liquidity providers, which is a positive sign. However, the added complexity might be confusing for casual users. The success of this upgrade depends on how many developers adopt and build on this new system.

3. Web3 Quest Platform (2026)

What’s happening: PancakeSwap will launch a gamified platform that rewards users with NFTs or CAKE tokens for completing on-chain activities like trading or providing liquidity. This is part of a broader effort to increase user engagement (Roadmap).

Why it matters: This could boost the utility of CAKE by encouraging more consistent use of the platform. However, similar reward programs, such as Galxe, have seen reduced effectiveness over time unless the rewards remain attractive.

4. Real-World Asset (RWA) Integration Growth (2026)

What’s happening: Following a 2025 partnership with Ondo Finance to list over 100 tokenized assets, PancakeSwap plans to expand support for real-world assets like stocks and ETFs to Ethereum and Aptos blockchains (October 2025 Recap).

Why it matters: This move could attract more institutional investors, which is a positive development. However, regulatory clarity will be important for this growth. Since the integration, RWAs have generated about $92 million in daily trading volume, mostly during U.S. market hours.

Conclusion

PancakeSwap is focusing on expanding multichain derivatives, offering more customizable decentralized exchange features, and integrating real-world assets. These efforts aim to strengthen its role as a leading DeFi platform. With CAKE’s supply down 35% year-over-year (Live Data), these upgrades could help improve its performance compared to other DeFi tokens. Keep an eye on quarterly token burn rates and developer activity around the v4 upgrade for early signs of success.

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What updates are there in the CAKE code base?

PancakeSwap has updated its platform to focus on reducing the total supply of CAKE tokens and improving how it works across different blockchain networks.

1. Tokenomics 3.0 Launch (April 2025) – Stopped veCAKE staking, unlocked all staked CAKE tokens, and increased the rate at which CAKE tokens are burned.
2. Cutting Token Emissions (April–May 2025) – Reduced the daily creation of new CAKE tokens by about 50%, down to 14,500 tokens per day.
3. Cross-Chain Swap Upgrade (July 2025) – Added support for Solana blockchain using LayerZero’s OFT standard, allowing smooth CAKE transfers across multiple blockchains.

Deep Dive

1. Tokenomics 3.0 Launch (April 2025)

What happened:
PancakeSwap ended the veCAKE staking program and the related voting system. Instead, 5% of trading fees are now used to burn CAKE tokens, with some pools burning up to 15%. All CAKE tokens that were locked in staking were unlocked, with users having until October 23, 2025, to redeem them.

Why it matters:
This change is positive for CAKE holders because unlocking staked tokens reduces the pressure to sell, while increasing token burns lowers the overall supply. Simplifying staking makes it easier for users to participate and helps make CAKE more scarce, which can support its value.

(Source)

2. Cutting Token Emissions (April–May 2025)

What happened:
The daily number of new CAKE tokens created was cut roughly in half, from about 29,000 to 14,500 tokens. The Ecosystem Growth Fund’s share was reduced by 50%, and the extra tokens were permanently burned.

Why it matters:
Reducing new token creation helps control inflation, which can protect the value of CAKE over time. However, the impact depends on continued strong trading activity. Lower emissions mean less dilution of existing tokens, supporting long-term supply health.

(Source)

3. Cross-Chain Swap Upgrade (July 2025)

What happened:
PancakeSwap added Solana blockchain support using LayerZero’s OFT standard. This allows CAKE tokens to be transferred one-to-one across eight different blockchains without slippage, thanks to Stargate technology.

Why it matters:
This upgrade is good news for CAKE because it makes the token more useful across multiple blockchain networks. Solana users can now easily access PancakeSwap’s liquidity, which could increase demand for CAKE.

(Source)

Conclusion

PancakeSwap’s recent updates focus on reducing the total supply of CAKE tokens and making the platform accessible across multiple blockchains. By lowering emissions and improving cross-chain transfers, PancakeSwap strengthens CAKE’s deflationary model and expands its use cases. The big question now is whether PancakeSwap can keep its position as a leading decentralized finance (DeFi) platform for liquidity.