CAKE's Deflationary Push: Will Burns Outpace Sell Pressure?

PancakeSwap's native token CAKE surged 14% to $3.90 in early October 2025 following the launch of CAKEPAD, a new decentralized token launch platformCAKE Crypto Bulls Eye $10 After CAKEPAD Launch - 99Bitcoins^[2]. The platform replaces the previous Initial Farm Offering (IFO) model, enabling users to commit CAKE directly to access early-stage tokens without staking or lock-upsPancakeSwap (CAKE) Price Jumps 14% as DEX Platform Launches CAKEPAD^[1]. A key feature of CAKEPAD is the permanent burning of 100% of participation fees, aligning with PancakeSwap's deflationary strategy to reduce CAKE supply by 20% by 2030PancakeSwap (CAKE) Price Jumps 14% as DEX Platform Launches CAKEPAD^[1]. This initiative has reignited demand for CAKE, with the token's monthly gains reaching 55% and daily trading volumes on PancakeSwap jumping 169% to $663 millionCAKE Crypto Bulls Eye $10 After CAKEPAD Launch - 99Bitcoins^[2].

The launch of CAKEPAD is part of PancakeSwap's broader Tokenomics 3.0 overhaul, which includes slashing daily emissions from 40,000 to 22,500 CAKE and redirecting 5% of v3 pool trading fees to burn mechanismsPancakeSwap (CAKE) Price Prediction For 2025 & Beyond^[7]. These changes aim to accelerate supply reduction, with August 2025's burn program alone eliminating 2.73 million CAKE tokens, equivalent to 0.567% of the total supplyAugust 2025: PancakeSwap's CAKE Burn | PancakeSwap^[6]. Cumulative burns since September 2023 have removed 26.26 million CAKE, contributing to a shrinking circulating supply that analysts argue could drive long-term price appreciationAugust 2025: PancakeSwap's CAKE Burn | PancakeSwap^[6].

Technical analysis suggests CAKE may test critical resistance levels. A breakout above $3.73, a historical resistance point, could signal a path to $10, according to analysts citing the token's triangle pattern and ascending momentumCAKE Crypto Bulls Eye $10 After CAKEPAD Launch - 99Bitcoins^[2]. However, a failure to hold above $3.50 may trigger a short-term correction toward $2.38 supportPancakeSwap (CAKE) Fights Back After 5% Drop – Token Burn …^[4]. The Relative Strength Index (RSI) currently sits at 69, indicating moderate bullish momentum without overbought conditionsCAKE Crypto Bulls Eye $10 After CAKEPAD Launch - 99Bitcoins^[2]. Market observers also highlight CAKE's dominance in the decentralized exchange (DEX) sector, with PancakeSwap handling $840 billion in total volume since its launch, outpacing rivals like UniswapPancakeSwap (CAKE) Price Jumps 14% as DEX Platform Launches CAKEPAD^[1].

The deflationary strategy has been bolstered by strategic ecosystem expansions. PancakeSwap recently deployed cross-chain functionality on Solana and Coinbase's Base network, diversifying liquidity sources beyond the BNB ChainAltcoin Season Lifts PancakeSwap, BNB, Story – Can It …^[5]. These moves aim to mitigate reliance on a single blockchain and capture new user bases. However, risks remain, including the potential sell pressure from 60 million unlocked CAKE tokens (17% of the circulating supply) following the retirement of veCAKE staking mechanismsPancakeSwap (CAKE) Price Prediction For 2025 & Beyond^[7].

Looking ahead, CAKE's trajectory hinges on sustained burn rates and ecosystem adoption. Analysts project annual deflation could reach 4%, but warn that unlocked supply could temporarily depress prices if not offset by increased utilityPancakeSwap (CAKE) Price Prediction For 2025 & Beyond^[7]. Institutional adoption, such as Lista DAO's integration of CAKE as collateral, may strengthen fundamentalsPancakeSwap (CAKE) Price Prediction For 2025 & Beyond^[7]. With CAKE trading at $2.72 as of September 2025 and a market capitalization of $940 million, the token remains 93.81% below its 2021 high of $44.182025 CAKE Price Prediction: Analyzing Growth Trajectories and Ma…^[8]. If deflationary measures and cross-chain growth continue, CAKE could see renewed interest from investors seeking exposure to DeFi's next phase.