Multi-chain DEX PancakeSwap Announces a Huge Token Burn of $19M

PancakeSwap, a multi-chain decentralized exchange (DEX), has announced a large token burn. In a post on the X platform, PancakeSwap revealed that it has successfully burned $19 million worth of its native token, CAKE. This move is likely to heighten investor anticipation for a bullish CAKE price movement.

The details of the PancakeSwap burn show that 8,947,590 CAKE tokens were burned, which is equivalent to over $19 million at current prices. PancakeSwap has undertaken similar tactics in the past to manage the supply of CAKE, whose total supply currently stands at 380.22 million CAKE, while the maximum supply is capped at 450 million CAKE.

PancakeSwap burned 36.1 million CAKE, valued at over $113.3 million as of the end of December. Furthermore, the exchange reported a monthly net mint of 955,146 CAKE, which reduced the overall supply by 0.25%.

The DEX experienced substantial growth, with the Total Value Locked (TVL) exceeding $2.1 billion. The platform saw $53.46 billion in total trading volume in December, with an average of $1.72 billion daily. Moreover, PancakeSwap recorded a rise in unique trades, totaling 2.61 million.

Despite the $19 million token burn, the broader market sentiments surrounding CAKE are bearish. The token price has fallen from its peak last month of $4.20. At press time, CAKE is trading at $2.17, down 6.15% in the last 24 hours and 33.58% in the past month. The trading volume, however, increased by 57.9% to $87.6 million, suggesting investors’ willingness to accumulate CAKE.

Recently, Coinspeaker reported that PancakeSwap closed 2024 with a $310 billion crypto trading volume. This figure is largely attributed to the growing interest in DEXs and the general expansion of Layer-2 networks. The DEX platform is available across multiple chains, including BNB Chain, Ethereum, Base, Aptos, Linea, and Arbitrum.

PancakeSwap Introduced Springboard for Token Creation

PancakeSwap continues to innovate with recent introductions. The platform recently launched Springboard, reaffirming its mission to advance Decentralized Finance (DeFi) inclusivity. Springboard is a no-code token launchpad, similar to Pump.Fun. The platform allows users to develop and launch tokens directly on the BNB Chain.

The new launchpad offers zero launch fees and a “fair launch” mechanism that ensures equitable token distribution without pre-sales or seed funding. Additionally, it integrates tokens with PancakeSwap’s liquidity pools once they reach 100% on the bonding curve.

This model helps simplify the process for token creators by eliminating reliance on external decentralized exchanges.

Before Springboard, PancakeSwap introduced the MEV Guard and PancakeSwapX to empower users and compete with other DEXes. The Miner Extractable Value (MEV) attacks DEX users, denying them the best swap prices through frontrunning and sandwiching. The PancakeSwap MEV Guard, developed by the 48 Club team, is multi-wallet compatible, including custom RPC support.