CAKE 2.0 and its impact of the overall DEX
- PancakeSwap released CAKE 2.0, which sparked community engagement.
- This increased the maximum supply of CAKE to 750 million and added additional uses for the locked CAKE tokens.
- The additional use-cases could contribute to a higher level of utility and, as such, the growth of CAKE.
PancakeSwap CAKE/USD is a decentralized exchange (DEX) that is known as an automated market maker (AMM).
What this essentially means is that it features no order books, no bid or ask the system, and no limit or market orders.
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All users need to do is trade on the platform and automatically draw liquidity from one or more of the available liquidity pools. This, in turn, rebalances after the trade completes.
CAKE is the native cryptocurrency token of PancakeSwap, which is used for a variety of purposes.
The CAKE 2.0 proposition as a catalyst for growth
On May 11, 2022, PancakeSwap’s official Twitter page introduced the proposed tokenomics update with a maximum supply cap of 750 million CAKE tokens.
Within this proposal, PancakeSwap proposed a maximum supply cap of 750 million CAKE tokens, which will introduce revised tokenomics for locked CAKE.
One such improvement includes bridging boosted IFO benefits, as well as farm yields for all users.
The project believes that by having a maximum supply cap and incentivizing a smaller effective circulating supply, the update can reflect the value, community, and sustainability of the project.
Other additional use-cases for locked CAKE will include weighted voting and increased mining rewards.
We looked at PancakeSwap in March when we discussed if it’s a good buy; however, with this update, it might be shaping up to be an even better purchase.
With all of this in mind, let’s go over how this will shape the future value of the CAKE cryptocurrency.
Should you buy PancakeSwap (CAKE)?
On May 13, 2022, PancakeSwap (CAKE) had a value of $4.36.
To truly see what kind of value point this is for the CAKE cryptocurrency, we are going to go over its all-time high value, as well as its performance throughout the previous month.
The all-time high of PancakeSwap (CAKE) was on April 30, 2021, when the token reached a value of $43.96. At its ATH, the token was $39.6 higher in value or by 908%.
When we go over the performance of the token throughout the previous month, we can see that PancakeSwap (CAKE) had its highest point of value on April 4 at $10.16, while its lowest point was on April 28 at $7.46. Here we can see that CAKE decreased in value by $2.7 or by 26%.
Based on this data, PancakeSwap (CAKE) is a solid buy at $4.36, as it can reach a value of $8 by the end of May 2022, following these recent updates.
CAKE increased in value by 20% in the last 24 hours, and now could be a good time to find a good entry point for the token.
Where to buy right now
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*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.