The PancakeSwap (CAKE) token has experienced significant upward momentum, reaching its highest price in over two months amid recent protocol upgrades and strategic changes. Key factors driving the rally include the implementation of Tokenomics 3.0 and the launch of PancakeSwap Infinity with the Brevis trustless hooks system.
Tokenomics 3.0: Introduced in April and gradually phased in, Tokenomics 3.0 decreases daily token emissions from 29,000 to 14,500 CAKE, reducing supply through ongoing token burns that remove approximately 5.3 million CAKE tokens annually. This supply contraction, combined with lowered ecosystem fund allocations and elimination of gauge voting and veCAKE models, has enhanced investor confidence and incentivized buying despite resumed token unlocking.
PancakeSwap Infinity and Brevis Hooks: Launched end of April, this upgrade enables dynamic real-time fee discounts based on users' CAKE holdings and trading volumes—no staking required. The system automatically applies personalized fee reductions on popular trading pairs like USDT–USDC and ETH–USDT, encouraging holders and traders to accumulate CAKE to benefit from lower fees.
The price of CAKE rose more than 16% on May 27 to $2.91, representing a two-month high, and has surged over 30% in the last month. Technical indicators support a bullish outlook with a pending golden cross for the 50-day and 200-day EMAs, a bullish MACD crossover, and rising Relative Strength Index (RSI) nearing overbought territory at 67.
Trading volume on PancakeSwap increased to $106 billion, reflecting growing platform activity. Open interest in CAKE derivatives rose sharply by over 80% in 24 hours to $90.53 million, while short liquidations indicate strong bearish pressure being covered. Resistance levels at $2.77 and $2.80 have recently been tested, with potential to push CAKE toward $3.00 and $3.57 Fibonacci retracement targets if momentum sustains.