PancakeSwap network burns over 10M coins to boost CAKE's demand

Crypto platform PancakeSwap unveiled a massive token burn on Tuesday, with the team destroying more than 10 million coins. The event, targeted at reducing the asset’s circulating supply, triggered a significant price uptick for CAKE.

PancakeSwap’s massive token burn

The network revealed that the team removed around 10.17 million CAKE tokens, worth over $35M, from the total supply on Tuesday. Meanwhile, the token burn has reduced PancakeSwap coins in the circulating supply to 265M from 275M. The maximum supply stands at 750M.

Earlier, PancakeSwap planned to lower the max supply to 450M to rescue the altcoin from prolonged price dips. The project is yet to implement the proposal. Therefore, the team will introduce enormous weekly burns to boost the altcoin.

Crypto burns are crucial in the digital assets sector as they reduce asset supply. Reduced assets translate to amplified demand for cryptocurrencies, boosting value and prices.

CAKE prices

PancakeSwap traded with a bullish stance at this publication, up around 27% in the previous day to press time levels of $3.67. The token gained over 6% within one hour of the latest token burn.

Also, CAKE saw increased crowd interest, with the daily volume soaring by 74% to $330,695,669. Nevertheless, the alt remains 92% down from its April 2021 ATHs of $44.18.