PancakeSwap has just approved the proposal to reduce the supply cap from
$CAKE of 450 million to 400 million (a reduction of 50 million). The team stated that since April 2025,
$CAKE has been in a net deflationary state, and the ecosystem treasury is growing strongly enough that the likelihood of inflation returning is low. The goal of this adjustment is to increase scarcity and strengthen the long-term value of the protocol.
The announcement triggered a wave of trading activity: volume increased by approximately 30% in the short term, and the price moved close to the $1.98 mark. The community responded positively, with many noting that the reduced supply supports price, and one whale was observed shifting from a short position to a long position, driving increased buying pressure.
Short-term trading perspective: positive trading activity is more suitable at this moment. If the price closes above $2.00 with corresponding volume, consider opening a long position with a reference target of $2.12. Conversely, if the price drops to $1.90, it would be advisable to partially close positions to manage risk.
#Cake