CAKE, the tokens powering decentralized finance application PancakeSwap, have been under bearish momentum lately. The tokens have lost over 80% of their value in about a year. PancakeSwap’s community voted overwhelmingly at the start of May 2022 to cap the token supply at 750.
Could the limited supply cap of CAKE tokens revive the fortunes of CAKE tokens, or are we likely to see more liquidations? Look no further if you are looking for PancakeSwap (CAKE) price projections for 2022-2025. We will look at the recent CAKE pricing to see what to expect from the future price changes.
What is PancakeSwap?
PancakeSwap is a decentralized exchange on BNB Chain that uses an automated market-making system to fill trading orders. The DEX was forked from SushiSwap with a nearly similar codebase. PancakeSwap benefits from the lower transaction cost of the BNB Chain. Additional features include yield farming, Initial Farm Offering, and lotteries.
PancakeSwap is a platform for facilitating the exchange of BEP-20 tokens without an order book. In the place of an order book, the DEX allows users to deposit assets into a pool that can be traded. The price of the digital assets to exchange is set algorithmically depending on the amount of the assets traded.
PancakeSwap was founded in 2020 by anonymous developers. The DEX grew in popularity due to relatively lower trading fees of about 0.2% compared to the industry standard of 0.3%. Since then, the platform has recorded a surge in transactions and plans to enter the prediction market, margin trading, lending, and borrowing.
CAKE is a BEP-20 standardized token powering PancakeSwap that is used in governance. The protocol users can get CAKE tokens by providing liquidity to multiple liquidity pools on the network. The LPs can also stake their tokens in exchange for CAKE rewards.
Pancakeswap: should you invest in a Cake token today?
PanCake’s token is currently facing a bearish momentum, according to the daily price chart. The token found resistance at $10.4 on April 4 before embarking on a downward momentum. CAKE tanked 42% on May 9, then consolidated around $4.2. The token remains below the 100 and 200 MAs, which are expected to offer resistance to the upside.
According to the Relative Strength Index, CAKE is trading slightly above the 30 oversold zones and possibly at the trend reversal point. However, an upward trend will only be seen when the price rises above $10. CAKE is an ideal buy only for long-term investment based on the above technical analysis.
Will CAKE reach 20 USD in 2022?
Our price projection is based on the potential of the decentralized exchanges in the crypto sector, the platform’s technological advancement, and the overall uptake of cryptos.
- Our in-depth technical and fundamental analysis shows that it could rise between $8 and $10 in 2022, with an average trading price of $6.
- In 2022, the token is predicted to trade at a maximum price range of between $15 and $20. The average trading price in the year will be $13.
- The 2023 price prediction puts CAKE at a maximum price range of $30 and 40$. On average, the token is expected to trade at about $28 in the period.
- This crypto price prediction in 2024 is forecasted to rise to as high as $45 and a minimum price of $38. On average, the token could trade at about $25.
CAKE past price analysis
According to data from CoinMarketCap, CAKE is currently trading at $4.36, a 2.23% jump in the past day and a 4.53% decrease in the past week. The number of CAKE tokens in circulation is 185,261,522.94 from a total supply of 298,262,625 and a maximum supply of 750,000,000. CAKE’s market rank is #61, with a valuation of $809,411,099.64.
CAKE has plunged 46% in the past month since trading at $8.1 and a further 30.6% in the past three months. The yearly outlook shows a further loss in popularity in CAKE tokens, with the price having tanked 70.2% and 63.27% year-to-date. From the ATH of $42.59 in April 2021, CAKE has lost a whopping 89.74%.
PancakeSwap allows its users to contribute to the liquidity pools for the automated market maker. CAKE can be staked using a supported cryptocurrency wallet like MetaMask and Trust wallets.
A user who wants to stake CAKE tokens must hold CAKE and BNB. There is no minimum amount of CAKE that can be staked on the DEX. The amount of return depends on the amount of staked tokens and the duration of staking.
Want to buy CAKE?
CAKE tokens are available on multiple exchanges, including Binance, Huobi Global, and KuCoin. The tokens are listed against USDT, BUSD, BNB, and BTC. To buy CAKE tokens, follow these steps:
Create an account with Binance.
Buy or download a crypto software wallet that connects to PancakeSwap.
Fund your accounts using cryptocurrencies, fiat, or stablecoins. The available options are CAKE/USDT, CAKE/BTC, and CAKE/BUSD pairs.
Exchange stablecoin for CAKE tokens.