Why PancakeSwap (CAKE) is Soaring

PancakeSwap (CAKE) surged by 24.55% in the last 24 hours, significantly outperforming the broader crypto market, which rose by just 1.6%. Extending its weekly rally to 27.5%, CAKE’s rapid growth has been fueled by BNB’s record highs, massive trading volumes, and key technical breakthroughs.

1. BNB’s Record High and Its Impact on the Ecosystem

On October 3, BNB reached a new all-time high of $1,112, driven by rising spot demand and a 12% increase in derivatives open interest, reaching $2.11 billion.

As the largest decentralized exchange on the BNB Chain, PancakeSwap directly benefits from this surge in network activity. In the past 24 hours, the platform generated $1.51 million in trading fees—a sharp increase compared to July averages—highlighting CAKE’s appeal as a revenue-sharing token.

Whether BNB can sustain above $1,100. A drop below this level could dampen momentum across the ecosystem.

2. Record Trading Volumes and Tokenomics

PancakeSwap recorded an unprecedented $476.36 billion in trading volume during Q3 2025. This extraordinary activity not only boosted protocol revenues but also triggered significant token burns, supporting CAKE’s scarcity.

• In May 2025 alone, 71.8 million CAKE tokens (approximately $162.7 million) were burned, reducing circulating supply amid growing demand.

• Features like Fee-Earning Limit Orders further incentivize liquidity providers, tightening CAKE’s circulating supply even more.

The sustainability of these volumes is critical. Should daily trading fees fall below $5 million (July average), the ongoing rally may start to lose steam.

3. Technical Breakout Driving Momentum

CAKE recently broke through key resistance levels, creating a strong bullish signal. This technical breakout has boosted investor confidence and triggered further buying pressure, serving as a key factor behind the token’s rapid ascent.

This article is for informational purposes only and should not be considered financial advice.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.