$CAKE
1. The shift in model: From "Inflation" to "Supply Reduction"
The biggest weakness of CAKE in the past was issuing too many tokens for rewards (extremely high inflation). However, the project has undergone a major turning point with PancakeSwap v3 and CAKE Tokenomics v3:
Reducing supply: The maximum total supply is now capped at 450 million CAKE (instead of unlimited as before).
Aggressive Burn mechanism: PancakeSwap uses revenue from transaction fees to buy back and burn CAKE weekly. Currently, CAKE has reached a deflationary state for several consecutive months (the amount burned exceeds the amount issued).
2. Potential from diversification (Multi-chain)
CAKE is no longer only on the BNB Chain. To maintain its position, they have expanded to:
Ethereum, Base, Arbitrum, and zkSync: Dominating the market share on Layer-2 helps CAKE access new cash flows outside of Binance's ecosystem.
GameFi sector: PancakeSwap has launched a Marketplace for games, adding more utility for the CAKE token instead of just being used for farming.
