PancakeSwap

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
The native token of <a href="https://u.today/3-reasons-why-pancakeswap-cake-suddenly-jumped-20" rel="noopener noreferrer nofollow">PancakeSwap</a> might undergo a massive change if this vote goes through. A proposal to reduce the total supply limit of CAKE from 750 million to 450 million tokens by the PancakeSwap community is <a href="https://pancakeswap.finance/voting/proposal/0x3e014aab40f6551da9f76da0e62e44e9ece55c4997f220057bf3e42dc8307c2f" rel="noopener noreferrer nofollow">live right now</a>.&nbsp;
With the voting showing a staggering 99.47% in favor, the market is bracing for the outcome. Should the proposal be approved before the deadline of Dec. 29, and if it goes into effect on Jan. 4, 2024, we may witness a significant impact on CAKE's value. <img alt="Pancake Proposal" src="https://imgur.com/kGk5kri.png">Source: <a href="https://pancakeswap.finance/voting/proposal/0x3e014aab40f6551da9f76da0e62e44e9ece55c4997f220057bf3e42dc8307c2f" rel="noopener noreferrer nofollow">PancakeSwap</a>
A supply reduction of this magnitude usually leads to bullish sentiment among investors, as the basic economic principle of scarcity can drive up the price. The proposal indicates a proactive community engaged in the governance of its protocol, which can be a positive signal of a healthy ecosystem. Additionally, the anticipated reduction in supply might prompt investors to accumulate <a href="https://u.today/pancakeswap-cake-launches-revenue-sharing-pool-cake-stakers-to-benefit" rel="noopener noreferrer nofollow">CAKE</a> before the change, expecting to profit from a potential price surge due to the increased scarcity.
However, in the cryptosphere, the axiom of "buy the rumor, sell the news" often plays out. It encapsulates the phenomenon where assets experience a run-up in price leading to a significant planned event, only to see a sell-off when the event actually occurs. Investors may have already priced in the expectations of the supply change, and the actual implementation might not have the dramatic impact some are expecting.
Looking at the current performance of <a href="https://u.today/pepeusdt-liquidity-pool-on-bsc-added-by-pancakeswap-cake" rel="noopener noreferrer nofollow">CAKE</a>, the price appears to be in a bullish trend, supported by increasing trading volumes and positive sentiment reflected in technical indicators like the Moving Averages and the Relative Strength Index, which is comfortably above the midline, suggesting bullish momentum.

This Asset Might Explode Soon, But Reason Is Not What You Think

U_Today

Other articles published on Dec 28, 2023

Ethereum jumps 8% in 24 hours post Buterin’s proposal

MicroStrategy’s stock surges 350% in 2023 on Bitcoin ETF expectations

Monex acquires 3iQ majority for crypto-asset integration

Veteran Trader Peter Brandt Spots Intriguing Trend on Ethereum (ETH)

Cathie Wood’s ARK Invest Company Ends 2023 with a Big Shift Ahead of Spot Bitcoin ETFs!

XRP Detractor Switches To Buy Mode, What Changed?

Join our free newsletter for daily crypto updates!