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Unveiling the Secret Behind CAKE’s 20% Surge: What You Missed!

Crypto
Last updated: March 18, 2025 10:11 am
Crypto
Published March 18, 2025
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Unveiling the Secret Behind CAKE’s 20% Surge: What You Missed!

PancakeSwap’s CAKE Token Surges as Trading Volume Soars

On March 18, CAKE, the native token of PancakeSwap, experienced a significant rally. It jumped 23%, reaching an intraday high of $2.63. This surge pushed its weekly gains close to 70%. The daily trading volume tripled to $1.12 billion, with the market cap nearing $760 million.

The rise in CAKE’s value coincided with increased interest from derivative traders. CoinGlass data reveals that open interest rose 73% to $96 million, up from $30 million at the start of 2025. The altcoin’s success is linked to its growing popularity. pancakeswap became the most active decentralized exchange by trading volume for two consecutive days. according to DefiLlama, the platform’s 24-hour trading volume hit nearly $1.64 billion, surpassing competitors like Uniswap and Raydium. This growth reflects strong investor confidence. The platform now holds over 30% of the decentralized exchange market share.

Several factors contributed to this surge.Binance’s decision to delist Tether (USDT) and eight other stablecoins for European users due to EU regulations has driven many traders to move their USDT to PancakeSwap.

Another factor is Binance’s $2 billion investment in MGX, boosting confidence in Binance-linked projects. Additionally, PancakeSwap burned over 9.3 million CAKE tokens, worth about $23 million, which can increase scarcity and value.

Technical indicators show a bullish trend. The 50-day EMA is poised to cross the 200-day EMA,and the MACD lines are trending upward. CAKE is targeting $2.65, with potential for $2.95. However, it must hold above the $2.40-$2.70 support range to maintain momentum.

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