Why PancakeSwap (CAKE) is Growing and What is The Price Prediction For 2024
PancakeSwap (CAKE) saw a sharp rise to $3.47 this week. Let's see the reason for this price performance and make a prediction for 2024.
PancakeSwap (CAKE) crisis
In the first half of 2023, the CAKE token saw a decline. The asset's price was affected by the impact of the market. Neither numerous partnerships nor other initiatives of the PancakeSwap team influenced the growth of the coin: CAKE remained under pressure.
Moreover, the first half of the year saw a negative mood of market participants, who expressed their concerns about both centralized and decentralized exchanges. Therefore, many sought to exit PancakeSwap.
Why PancakeSwap (CAKE) is growing?
Despite the fact that CAKE's performance has dropped by 18% year-over-year, the token has started to actively grow in the last six months. One of the main reasons was the general market sentiment. In addition, the PancakeSwap team announced back in the fall the distribution of rewards, including staking. The protocol is also expanding its capabilities, moving away from the concept of being an exclusively decentralized exchange. Not long ago, PancakeSwap introduced p2p functionality. A number of updates and offerings have also spurred CAKE's price to rise.
The growth of the protocol token is also due to the burning of CAKE. This week, the protocol burned about 10 million coins worth more than $35 million. This reduced the circulating supply of CAKE tokens from 275 million to 265 million, which also caused the price to surge. And intraday trading volume totaled $393 million, soaring 163%. Amid such positive changes, the PancakeSwap team announced the practice of burning CAKE token on a weekly basis.
PancakeSwap (CAKE) forecast for 2024
CAKE has risen 57% over the past seven days. At the time of writing, the asset was trading at $3.47. Now CAKE is on the threshold of a new recovery, the bearish momentum is changing into a bullish one.
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Experts claim that the team's decision to conduct a burn every week and the general bullish mood in the market allows CAKE price to continue its recovery. However, technical analysis warns of a soon price pullback, as the ADX slope is at 32%.
If the project team continues to actively update the network and develop the community, experts predict that the CAKE price could reach $4.13 by the end of 2024. This forecast is not a 100% statement. Be aware of market risks and do your own research.
