PancakeSwap’s native token, CAKE, has experienced a remarkable surge of 60% in just 24 hours, reaching a price of $3.08. This surge has propelled CAKE’s market cap to $899.41 million, with a 24-hour trading volume of $1.07 billion, marking a 335% increase in activity. The source of this information is CoinMarketCap.
One of the main drivers behind this surge is PancakeSwap’s revenue-sharing program, which has been offering substantial rewards to stakers. Since the beginning of 2024, 770,527 CAKE tokens, equivalent to around $1.9 million, have been distributed to stakers through the platform. This has incentivized more investors to lock up their CAKE tokens, leading to a decrease in supply and an increase in demand.
PancakeSwap has also been enhancing its protocol to facilitate smoother cross-chain swaps with MEV protection. By offering attractive staking rewards, the platform has attracted more liquidity providers, thereby strengthening its decentralized exchange (DEX) ecosystem.
Prior to this surge, CAKE had been experiencing a prolonged correction period, causing traders to be skeptical about its price movement. However, the recent 100% increase in price over the past week has dispelled bearish sentiment and restored confidence in the altcoin.
With CAKE’s fully diluted valuation now standing at $972 million, analysts believe that the momentum could continue as long as demand remains strong and staking incentives remain appealing.
In conclusion, PancakeSwap’s CAKE token has seen a significant price surge driven by staking rewards, protocol upgrades, and increased liquidity provision. The question now is whether this momentum is sustainable in the long term.