- PancakeSwap burned a total of 7,153,999 CAKE tokens worth $27 Million.
- The network also announced a $135,000 airdrop to celebrate its V3 upgrade.
- PancakeSwap recorded a 10% drop in weekly trading volume.
PancakeSwap has burned 7,153,999 CAKE tokens in preparation for the V3 launch, which is scheduled for April.
The DEX announced on Monday that it had burned $27 million in CAKE tokens. The protocol obtained these tokens through various means, including trading fees, predictions, lotteries, and a non-fungible token (NFT) marketplace.
PancakeSwap, like other DEXs, uses smart contracts to allow users to swap cryptocurrencies without intermediaries, earning revenue on each swap and distributing a portion of that revenue in the form of rewards to liquidity providers.
PancakeSwap also announced an upgrade to V3 beginning in the first week of April 2023. V3 will be available exclusively on the BNB Smart Chain (BSC), known for its fast and low-cost transactions. It is also available on the Aptos and Ethereum blockchains.
PancakeSwap Announces $135,000 Airdrop
The DEX claims in a Medium article that V3 will introduce competitive trading fees, trading incentives, improved liquidity provisioning, and yield farming experience. To commemorate its migration, it has also announced a $135,000 airdrop in CAKE tokens.
$105,000 of the total airdrop amount is set aside to reward existing users. Simultaneously, the protocol intends to reward new users with the remaining $30,000. Users who provide a minimum of $500 in specified liquidity pools qualify for the airdrop.
Winners will also receive NFT and CAKE tokens from PancakeSwap. However, the NFT will not be transferable to other wallets.
Trading Volume/ TVL Declines
Some community members have expressed their dissatisfaction with CAKE’s poor pricing action. Despite the positive developments in the project, the CAKE token’s price has fallen by 1.38% in the last 24 hours. It has fallen 91% from its all-time high of $44. PancakeSwap has over $2.48 billion in Total Value Locked, according to DefiLlama.
According to Token Terminal data, the weekly trading volume decreased by 10%, while the weekly average of daily users decreased marginally.
On-chain Activity Slows Down
According to Santiment data, daily active addresses have dropped by 23% since the weekly peak on March 3. The decrease in dynamic addresses reduced the frequency with which CAKE tokens moved across the network.
However, if the sharp increase in daily transaction volume in profit is to be believed, this could change. The prospect of higher profits may encourage holders to transact more. However, it may result in increased selling pressure in the short term.
The weighted sentiment has also been negative, indicating that investors hesitate to place bets on CAKE.