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CAKE’s May success may not carry into June: Here’s why

3min Read

Despite multiple migrations, PancakeSwap v3’s transactions declined in May. CAKE’s state was also concerning, as metrics were bearish.

CAKE's May success may not carry into June: Here's why

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  • PancakeSwap’s total volume nearly reached $15 billion in May.
  • Market indicators were bearish and suggested a price decline in June.

On 5 June, PancakeSwap [CAKE] posted a tweet that highlighted the network’s performance in May 2023. The blog not only mentioned updated statistics, but also all major integrations and developments over the past 30 days. 

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

PancakeSwap in May 2023

As per the official blog, CAKE’s total volume nearly reached $15 billion, with an average daily volume of about $480 million. Burn activity was also high last month, as is evident from the data.

40.7 million CAKE, worth $81 million, was burned last month, with an effective emission rate of 4.57 CAKE/Block. 

Apart from statistics, PancakeSwap mentioned that it made certain changes to its Market Maker Integration for Ethereum [ETH].

In response to the latest updates, developers added support for RNDR and FET while ceasing support for assets such as Aave [AAVE], Fantom [FTM], Decentraland [MANA], Maker [MKR], Yearn Finance [YFI], The Sandbox [SAND], UniSwap [UNI], and SushiSwap [SUSHI]. 

Additionally, multiple farms migrated from PancakeSwap v2 to v3 last month. The blog mentioned that developers successfully migrated six Farms from v2 to v3 in May, including Peel (BUSD), BNBX (BNB), GAL (BNB), ID (USDT), C98 (BNB), and CSIX (CAKE).

PancakeSwap v3’s metrics declined

Though the aforementioned updates looked encouraging. As per Dune’s data, the number of transactions and users of v3 on Ethereum registered a decline. A similar trend was also seen in v3’s performance on BNB Chain [BNB].

However, it was interesting to note that in June, the number of transactions and volume registered upticks on both Ethereum and BNB Chain. 

Source: Dune

CAKE took a huge blow

CAKE’s price action last month did not align with investors’ interest as it continuously registered declines. In the last seven days alone, CAKE’s price has plummeted by over 8%. At the time of writing, it was trading at $1.58, with a market capitalization of over $320 million.

CAKE’s MVRV Ratio remained low during the majority of the days last month, thanks to the price drop. Excluding 26 May, the token’s velocity also remained low. However, CAKE’s daily active addresses remained relatively stable. 

Source: Santiment

Will June be any different?

Interestingly, positive sentiment around CAKE has increased in the last few days. A change in market sentiment can play a role in changing CAKE’s declining price trend. However, as per Token Terminal, CAKE’s P/S Ratio increased.

An uptick in the metric means that the asset was overvalued at press time, suggesting a further downtrend in coming days. 

Source: Santiment

Realistic or not, here’s CAKE’s market cap in BTC’s terms

PancakeSwap’s trend reversal is not likely

Though sentiments around CAKE turned positive, the same is not true for its market indicators. The Exponential Moving Average (EMA) Ribbon displayed a bearish crossover.

The MACD’s findings also complemented those of the EMA Ribbon, minimizing the chances of a sudden northbound price breakout. However, CAKE’s Money Flow Index (MFI) gave much needed hope for a trend reversal as it registered an uptick. 

Source: TradingView


Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
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