Connect with us
Active Currencies 14771
Market Cap $2,545,197,356,518.00
Bitcoin Share 51.23%
24h Market Cap Change $-0.84

CAKE price craters 32% in January: Are February’s predictions better?

2min Read

CAKE’s price declines despite an uptick in PancakeSwap’s monthly trading volume.

CAKE price craters 32% in January: Are February's predictions better?

Share this article

  • CAKE’s price has dropped by over 30% in the last month.
  • This has occurred despite the growth in PancakeSwap’s trading volume.

CAKE, the token that powers BNB Chain’s leading decentralized exchange (DEX) PancakeSwap, has witnessed a 32% decline in its value since it peaked at $3.6 on the 29th of December 2023, according to CoinMarketCap.

At press time, the token exchanged hands at a month-low of $2.45.

This price dip has occurred despite a recent surge in trading volume on the DEX.

According to data from DefiLlama, in January, the trading volume on PancakeSwap totaled $15 billion, representing its highest since May 2023. 

As of the 31st of January, PancakeSwap’s TVL was $1.56 billion, marking a 3% decline from December’s $1.52 billion.

Source: DefiLlama

Interestingly, despite the surge in trading volume on PancakeSwap, it recorded a double-digit decline in protocol fees in January.

Data from Token Terminal showed that the DEX recorded a total of $9.4 million in transaction fees in January. This represented a 16% decline from the $11.4 million it saw in fees in December.

Due to the decrease in transaction fees, protocol revenue from the same also plummeted. In January, PancakeSwap recorded $3.1 million in total monthly revenue.

In the preceding month, the protocol’s revenue totaled $3.6 million. 

CAKE lovers avoid the sugar rush

CAKE’s momentum indicators rested below their respective center lines at the time of writing, suggesting a decline in buying pressure. 

For example, the token’s Relative Strength Index (RSI) trended close to the oversold zone at 38.56, while its Money Flow Index (MFI) returned a value of 38.15.

At these values, these indicators suggested that CAKE sell-offs significantly outpaced accumulation. 

Confirming the high bearish sentiments, CAKE’s MACD line (blue) was less than zero at -0.105.

When an asset’s MACD is lower than zero, it means that the shorter-term average is below the signal that selling pressure is stronger than buying pressure.

Read PancakeSwap’s [CAKE] Price Prediction 2023-24

Showing that CAKE’s recent high was reached a long time ago, its Aroon Up Line (orange) was 0%.

Source: TradingView

This indicator identifies trend strength and potential trend reversal points in a crypto asset’s price movement.


Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.