Famous analyst Ekta Mourya is evaluating an altcoin today. According to Mourya, there is a bomb coin ready to explode. Let’s look at the details.
Analyst points to altcoin Cake
In the ever-evolving world of decentralized exchanges (DEXs), PancakeSwap recently released an announcement. Announcing a significant token burn of $10.4 million from altcoin CAKE tokens. Token burns are often perceived as a bullish catalyst for cryptocurrencies. However, the CAKE case may not follow the usual scenario. Because reducing its circulating supply alone will not be enough to rekindle the price rally.
Over the past week, PancakeSwap’s native token altcoin CAKE has slumped nearly 3% on Binance over the past 24 hours. The token burn announcement has the potential to increase the value of CAKE. However, other critical factors are contributing to the recent price woes. One of these factors is the steady decline in the total value of assets locked on the PancakeSwap platform throughout 2023. This decrease in Total Locked Value (TVL) will directly affect the price dynamics of the token, signaling decreased user activity and liquidity in the DEX.
TVL and CAKE Staking
The TVL metric represents the combined value of locked assets in the PancakeSwap ecosystem. It has also followed a downward trend this year. In addition, the volume of staked altcoin CAKE tokens also reflects this decline, in line with the overall decline in activity on PancakeSwap.
https://twitter.com/PancakeSwap/status/1693578869146587176
Interestingly, CAKE’s social dominance increased significantly on August 21, as indicated by Santiment’s chart data. This increase marks the highest social relevance for the altcoin CAKE token in 2023. He also pointed to increased interest and participation among crypto holders.
The future of altcoin CAKE price
The big question still remains. Recent token burning and increasing social dominance. I wonder if it can effectively reinvigorate CAKE’s price increase? Token burns traditionally have the potential to fuel price increases. On the other hand, altcoin CAKE’s unique circumstances underscore the importance of considering a broader set of factors, including TVL and user activity, when predicting its price trajectory.
When we look at Kriptokoin.com, the crypto community is waiting for how things will develop. On the other hand, analyst Mourya expects an explosion. PancakeSwap and altcoin CAKE remind of the complex dynamics in the decentralized exchange space. Market participants will watch carefully for signs of a potential price resurgence in response to these developments.
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