PancakeSwap (CAKE) announced a burn of 8,703,247 CAKE on Monday, pulling $35 million worth of DeFi tokens from circulation. The DEX’s move catalyzed gains in the asset. A key announcement by PancakeSwap regarding a collaboration with Stryke is likely another catalyst driving gains in the DEX’s native token CAKE.
CAKE price added nearly 3% to its value on Monday. There are two key events that likely catalyzed the rally in the DeFi token. The first is the $35 million CAKE token burn by the DEX. PancakeSwap burned the fees collected across V3, V4, NFTs, games, Automated Market Makers (AMM) and the prediction market.
The DEX announced the token burn in an official tweet on X.
8,703,247 $CAKE just burned - that’s $35M!
— PancakeSwap v4 (@PancakeSwap) April 8, 2024
Trading fees (AMM V2): 115k CAKE ($465k) -35%
Trading fees (AMM V3): 99k CAKE ($400k) -45%
Trading fees (Non-AMM like Perpetual, Position manager etc): 14.8k CAKE ($60k) +3520%
Prediction: 40k CAKE ($160k) +4%
️ Lottery:… pic.twitter.com/8S7RIue3Hn
The other catalyst is PancakeSwap’s introduction of CLAMM Options Trading, in collaboration with Stryke, a decentralized options exchange. PancakeSwap users can trade options, build on-chain options liquidity, earn premiums and swap fees on Arbitrum.
⚡️Introducing CLAMM Options Trading on PancakeSwap in Collaboration with @stryke_xyz
— PancakeSwap v4 (@PancakeSwap) April 8, 2024
You can now trade options, build on-chain options liquidity, earn premiums, and earn swap fees on @arbitrum PancakeSwap https://t.co/YP1mfEVEh4https://t.co/JrbJWPgZd7
CAKE price is $4.039 at the time of writing. The DeFi token wiped out nearly 13% of its value in the past seven days; the gains on Monday could help CAKE begin its recovery.