- PancakeSwap recorded a net mint of -23,618 CAKE in September.
- The burned tokens equated to just about 0.01% of CAKE’s total supply.
Coin burning is one of the most sought-after events in the crypto space as it exerts a significant deflationary pressure on the asset and raises hopes for an upward swing in its value.
Read PancakeSwap’s [CAKE] Price Prediction 2023-2024
CAKE becomes scarcer
Popular decentralized exchange (DEX) PancakeSwap [CAKE] recently published its burn report for the month of September, showcasing the protocol’s accomplishments in reducing the supply of native token CAKE.
As per the report, PancakeSwap removed about 1.8 million CAKE tokens out of circulation in September. Adjusted against newly minted tokens, PancakeSwap recorded a net mint of -23,618 CAKE.
This meant that more tokens were burned than emitted during the month, therefore resulting in deflation.
Is it worth celebrating?
However, the figures flattered to deceive. The burned tokens equated to just about 0.01% of CAKE’s total supply. From a macro perspective, this wasn’t a very significant number.
As of this writing, nearly a billion CAKE tokens have been burned and over 217 million tokens were in circulation between public hands.
On expected lines, the CAKE fanbase was yet to see a meaningful impact of the burning events on the token’s value. Over the last month, CAKE shed 3.83% of its value to settle at $1.18 at the time of writing, per data from CoinMarketCap.
Having said that, the impact of scarcity on value of assets like Gold and Bitcoin [BTC] hasn’t been lost on anyone. It remains to be seen if CAKE could replicate something on those lines in the future.
Monthly volumes continue to tumble
At the time of writing, PancakeSwap was the second-largest DEX, registering traders worth nearly $200 million in the last 24 hours, according to DeFiLlama. This also marked a 28.44% growth over the last seven days.
How much are 1,10,100 CAKEs worth today?
However, volumes have steadily fallen in recent months, as shown below. Since the memecoin frenzy in May which drove a record number of users to the DEX, trading activity slipped lower with each passing month.
Moreover, the total worth of assets held by the DEX has been declining for the last two quarters. The total value locked (TVL) was $1.609 billion at the time of writing, less than half of what it was at the beginning of 2023.