PancakeSwap's CAKE Token Surges 3.73% on Tokenomics 3.0 Upgrade

PancakeSwap (CAKE) has experienced a significant resurgence, with its token price surging to near $1.95 after a tumultuous start to April that saw it dip to $1.52. This rally, marking a 3.73% daily gain, has been driven by the much-anticipated CAKE Tokenomics 3.0 upgrade, which has sparked bullish sentiment among investors. The upgrade introduces sweeping changes to staking, yield farming, and CAKE emissions, with a notable shift from a 5% revenue share model to a more aggressive 15% token burn strategy. This structural change is expected to tighten the supply of CAKE, a move typically well-received in crypto markets.

The new tokenomics model allows investors to redeem their staked CAKE and veCAKE over a six-month window, with full access to veCAKE on a 1:1 ratio depending on the staking duration. This change is expected to enhance user incentives and make the protocol more attractive to long-term holders. The upgrade comes at a favorable time, with Bitcoin holding firm above $87,500 and Ethereum stabilizing around $1,600, providing a supportive macro environment for CAKE’s rally.

Technical indicators also support the bullish case for CAKE. The MACD indicator has flipped to a buy signal, while the RSI trending above 50 shows increasing strength. On-chain metrics further bolster the recovery, with PancakeSwap’s Total Value Locked (TVL) standing at $1.6 billion. With a market cap of $573.98 million and a total supply of 372.31M CAKE, the increased burn rate could soon make scarcity a tailwind for the token’s price.

Ask Aime: What's behind the surge in PancakeSwap's token price after CAKE Tokenomics 3.0 upgrade?

Traders are now focusing on three crucial resistance points: the 100-day EMA at $2.08, the 200-day EMA at $2.16, and the descending trendline. A successful break above all three would validate the recent bullish momentum and clear the path toward $2.85, a level not seen since Q1 2024. However, the rally is not without risks. Profit-taking and the upcoming staking unlock period could introduce sell-side pressure, potentially leading to a dip back to support levels at $1.80 or even $1.52.

Despite these risks, the long-term outlook for PancakeSwap appears favorable. The CAKE Tokenomics 3.0 upgrade, with its tightened supply and enhanced user incentives, positions CAKE as a more resilient DeFi asset. The improved revenue redirection to burns and the strong structure of crypto markets make the protocol more attractive to long-term holders. Whether CAKE climbs toward $2.85 or dips back below $2.00 will depend largely on user engagement and macro sentiment. For now, PancakeSwap is baking bullish momentum into its roadmap, and the next few weeks will be critical in determining whether this DeFi favorite can sustain its gains.