Burn Rate of Shiba Inu [SHIB] and PancakeSwap [CAKE] Skyrockets – What’s Next?

• Shiba Inu and PancakeSwap tokens both experienced a massive increase in their burn rate.
• The SHIB burn rate went up by over 26,000% and CAKE burned tokens worth $16 million.
• Despite the increase in fees, PancakeSwap’s revenue remained unaffected and its performance was not the best on Ethereum [ETH].

Massive Uptick in Shiba Inu and PancakeSwap’s Burn Rate

Shiba Inu [SHIB] and PancakeSwap [CAKE] are two of the most popular deflationary tokens. Both tokens have registered a massive uptick in their respective burn rates; SHIB’s burn rate went up by over 26,000%, while CAKE burned tokens worth $16 million.

Impact of Increased Burn Rate on Network

The increase in SHIB’s and CAKE’s burn rate resulted in an increase in trading fees, but the surprising part was that despite this hike, PancakeSwap’s revenue remained unaffected. Furthermore, when it came to evaluating the performance of PancakeSwap v3 on Ethereum [ETH], it was observed that the daily transactions and users had decreased sharply over time. However, things were more stable on BNB Chain.

Bearish Price Action for CAKE

Although both SHIB’s and CAKE’s burn rates increased significantly, it was interesting to note that despite this development, CAKE still maintained a bearish price action. This suggests that even though these tokens experience increases in their respective burn rates from time to time, they might not necessarily benefit from this growth in terms of market capitalization or price action.

Deflationary Tokens Benefit Investors

It is important to understand that deflationary tokens are beneficial for investors as these assets experience continual decreases in supply due to burning mechanisms such as those witnessed with SHIB and CAKE recently. This decrease ultimately puts upward pressure on prices as demand rises while supply continues to drop; thus creating a favorable environment for traders who hold these assets long-term.


In conclusion, Shiba Inu [SHIB] and PancakeSwap [CAKE] are two popular deflationary tokens which recently experienced increases in their respective burn rates – SHIB’s skyrocketed by over 26,000%, while CAKE burned tokens worth $16 million – however this didn’t affect their overall price action negatively or positively. As such it is important for investors to understand how deflationary protocols work before investing so they can make informed decisions about which asset would be best suited for them based on their goals/strategies.