With claims of getting essentially the most customers than any decentralized platform with over $4.3 billion in funds, Pancake Swap, on 12 May, revealed a brand new governance proposal. It put forth the thought to cap the availability of its native token, CAKE, at 750 million. Although opposed by over 100 contributors, the foremost essence of the proposal is to successfully cut back the circulating provide of CAKE.
The new governance proposal additionally outlined plans of the protocol to introduce extra utility and incentives. These would solely be loved by customers who lock of their CAKE. With nearly 294 million in provide, let’s check out how CAKE has fared all 12 months lengthy.
Not Enough CAKES for everybody?
At press time, it was buying and selling at $4.20 after a decline of 64% for the reason that starting of the 12 months. 134 days in the past, the token was valued at $11.
In reality, since its April 2021 ATH of $44.18, CAKE is down by over 90%.
What the aforementioned hints at is a bearish bias.
With the RSI, MFI principally sustaining their positions under 50, the primary three months have been marked with sustained promoting stress. However, by April 2022, the token recorded an uptrend in value which pushed CAKE to the $9-region.
Corresponding upward motion into overbought positions for the RSI and MFI was gleaned. In addition, the 50 EMA throughout the identical interval maintained a place under the worth, indicative of a bullish development.
However, the bullish development was short-lived. By 26 April, a reversal occurred, one which pushed the worth of the token additional downwards, a development it since maintained. With a studying of 28 and 20, on the time of writing, the RSI and MFI, respectively, have been in overbought zones.
Here, the market capitalization is value taking a look at too. Ranked forty ninth on CMC, CAKE’s market capitalization has declined by >50% in simply over 100 days.
Is the altcoin in want of a brand new BAKER?
On-chain evaluation revealed that the transaction quantity for CAKE recorded a excessive of 667.68 million on 16 March. However, this was adopted by a decline in transaction quantity. At the time of writing, the transaction quantity stood at 118.84 million – A 37% decline in 48 hours.
On the social entrance, CAKE noticed its Social Dominance hike to 4.16% on 16 April. It then went on a gentle decline and stood at 1.16%, on the time of writing.
Similarly, the Social Volume hit a excessive of 3506 on 16 April. Likewise, it launched into a decline on this entrance too, falling to 1058 at press time.
Will everybody need a piece?
With plans to put a cap on current provide, it’s anticipated that the worth of the CAKE tokens could witness a spike within the months to come. Furthermore, because the protocol begins to execute plans for added utilities and incentives for token holders, it’s only a matter of time earlier than everybody desires to get a bit of CAKE.