Shiba Inu [SHIB] and PancakeSwap’s [CAKE] burn rate skyrockets; this is the outcome
- SHIB’s burn rate went up by over 26,000% in the last 24 hours, while CAKE burned tokens worth $16 million.
- CAKE increased burn rate resulted in an increase in trading fees, but its revenue remained low.
When we talk about deflationary tokens, Shiba Inu [SHIB] and PancakeSwap [CAKE] are two of the most popular assets. It was also interesting that in the recent past, both tokens have had updates related to their burn rates.
Read PancakeSwap’s [CAKE] Price Prediction 2023-24
Shiba Inu and PancakeSwap’s burn rate on fire
Shiba Inu, the world’s second largest memecoin, registered a massive surge in its burn rate. As per Shibburn’s data, the SHIB burn rate increased by 26,000% in the last 24 hours. In the last 24 hours itself, 3,034,309,519 SHIB tokens were burned in two transactions.
While SHIB’s burn rate looked promising, CAKE’s situation was also somewhat similar. PancakeSwap recently burned 8,554,482 CAKE, which was worth over $16 million.
🔥We just witnessed an EPIC burn!
💥A staggering 8,554,482 $CAKE just burned, amounting to a jaw-dropping $16M!
👀The increase in trading fees, shooting up by 191%, was primarily due to the inclusion of the v3 fee (since launch till last Friday) and Market Marker fee in April… pic.twitter.com/3aDaBwkPsH
— PancakeSwap🥞Ev3ryone's Favourite D3X (@PancakeSwap) May 15, 2023
CAKE burn’s impact on the network
PancakeSwap revealed in the tweet that the massive surge in burn rate caused its trading fees to go up by over 190%. The increase in trading fees was primarily due to the inclusion of the v3 fee and Market Marker fee in April.
However, it was surprising to see that despite the increase in fees, PancakeSwap’s revenue remained unaffected.
PancakeSwap v3’s performance was also not the best on Ethereum [ETH]. As per Dune’s data, the number of daily transactions and users went down sharply over the last few days. However, things were in check on BNB Chain, as evident from the chart.
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CAKE is drifting further below
CAKE’s piece action has been a matter of concern for quite some time now. The token’s position on the list of the top 10 cryptos by market cap has also declined lately. At press time, CAKE was trading at $1.86, with a market cap of more than $373 million.
A look at the token’s on-chain metrics suggested that, despite the higher burn rate, investors might have more days of hardship. CAKE’s MVRV Ratio remained low, which is typically bearish.
The number of daily active addresses also declined, suggesting less usage. Additionally, negative sentiments around CAKE were dominant in the market, as evident from its low weighted sentiment.