With claims to have the most users than any decentralized platform with over $4.3 billion in funds, pancake swapon May 12, published a new board proposal. It came up with the idea of ​​limiting the stock of its original token, CAKE, to 750 million. Although more than 100 participants oppose this, the main essence of the proposal is to effectively reduce the circulating supply of CAKE.

The new board proposal also outlined plans of the protocol to introduce additional utility and incentives. These would only be enjoyed by users who lock their CAKE. With about 294 million in stock, let’s see how CAKE fared throughout the year.

Not enough CAKES for everyone?

As of going to press, it was trading at $4.20 after a 64% decline since the start of the year. 134 days ago, the token was valued at $11.

In fact, since the April 2021 ATH of $44.18, CAKE is down more than 90%.

Source: CoinMarketCap

What the above indicates is a bearish bias.

With the RSI, with MFIs largely maintaining their positions below 50, the first three months were characterized by continued selling pressure. However, by April 2022, the token registered an upward price trend that pushed CAKE into the $9 region.

A corresponding upward move towards overbought positions for the RSI and MFI was obtained. In addition, the 50 EMA maintained a position below the price during the same period, indicating a bullish trend.

However, the upward trend was short-lived. On April 26, a reversal occurred, one that pushed the price of the token further downward, a trend that has been maintained ever since. At 28 and 20, the RSI and MFI were respectively in overbought zones at the time of writing.

Source: TradingView

Well…

Again, the market cap is worth looking at. Ranked 49th on CMC, CAKEs the market cap is down >50% in just over 100 days.

Does the altcoin need a new BAKER?

On-chain analysis showed that transaction volume for CAKE peaked at 667.68 million on March 16. However, this was followed by a decline in transaction volume. At the time of writing, the transaction volume was 118.84 million – a drop of 37% in 48 hours.

Source: Santiment

Socially, CAKE saw its social dominance rise to 4.16% on April 16. After that, it steadily declined and stood at 1.16% at the time of writing.

Similarly, on April 16, social volume peaked at 3,506. Likewise, it also began a decline on this front, to 1058 at press time.

Source: Santiment

Anyone want a piece?

With plans to curtail existing supply, the price of the CAKE tokens is expected to spike in the coming months. In addition, as the protocol begins to implement plans for additional utilities and incentives for token holders, it is only a matter of time before everyone wants to get a piece of CAKE.



This post What can you expect when there is no more CAKE to bake?

was published first on https://ambcrypto.com/what-can-you-expect-with-no-more-cake-to-bake/

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