PancakeSwap’s native token, CAKE, skyrocketed by 23% on March 18, hitting an intraday high of $2.63 and pushing its weekly gains close to 70%. The rally was fueled by a surge in trading volume and increasing investor confidence, solidifying PancakeSwap’s dominance in the decentralized exchange (DEX) market.
CAKE’s Rally and Trading Volume Surge
CAKE’s price surge was accompanied by a threefold increase in daily trading volume, reaching approximately $1.12 billion. Meanwhile, the token’s market capitalization approached $760 million.
CoinGlass data further revealed that open interest in CAKE derivatives jumped 73% in a single day, climbing from $30 million at the start of 2025 to $96 million—a strong indication of heightened interest from traders.
PancakeSwap Becomes the Most Active DEX
A major catalyst behind CAKE’s surge is PancakeSwap’s rise as the most active decentralized exchange by daily trading volume. According to DefiLlama, PancakeSwap processed $1.64 billion in trading volume on March 18, outperforming competitors like Uniswap ($1.021 billion) and Raydium ($334.98 million). As a result, PancakeSwap now commands over 30% of the total DEX market share.
Key Drivers Behind CAKE’s Price Surge
1. Binance’s USDT Delisting in the EEA
One of the primary factors fueling CAKE’s rally is Binance’s decision to delist Tether (USDT) and eight other stablecoins for users in the European Economic Area (EEA) due to compliance with the EU’s Markets in Crypto-Assets (MiCA) regulations. This move has driven Binance users to PancakeSwap, significantly increasing USDT trading volume on the DEX.
PancakeSwap recorded $352.4 million in USDT trades within 24 hours, accounting for 31% of its total volume.
2. Changpeng Zhao’s Memecoin Hype
A separate catalyst for PancakeSwap’s trading volume spike is Binance founder Changpeng Zhao’s (CZ) influence on the memecoin market. A recent tweet by Zhao inspired the launch of MUBARAK, a BNB Chain-based memecoin, which has surged 270% in the past week.
Following Zhao’s mention, MUBARAK became the third most traded asset on PancakeSwap V3, trailing only USDT and Wrapped BNB (WBNB).
3. Binance’s $2 Billion Investment in Abu Dhabi’s MGX
Another contributing factor to CAKE’s rally is Binance’s recent $2 billion investment in Abu Dhabi-based MGX, a tech investment firm. This move has boosted confidence in Binance-linked projects, including PancakeSwap, which operates on the BNB Chain.
4. Massive CAKE Token Burn
PancakeSwap has also conducted a major token burn, permanently removing 9.3 million CAKE tokens worth approximately $23 million from circulation. Token burns help reduce supply, increasing scarcity and potentially driving up prices.
On-Chain Metrics Indicate Bullish Sentiment
On-chain analytics from Santiment show that social sentiment surrounding CAKE has turned positive. Additionally, daily active addresses have spiked in the past 48 hours, reflecting heightened user engagement. Large holders have also been accumulating CAKE, indicating confidence in its long-term potential.
CAKE Price Outlook: Bullish Breakout in Sight?
Technical Analysis
CAKE has successfully broken above a descending resistance trendline that has been in place since February 13.
- The 50-day Exponential Moving Average (EMA) is close to crossing above the 200-day EMA, forming a golden cross, a bullish indicator signaling potential further gains.
- The MACD (Moving Average Convergence Divergence) lines are trending upward, reinforcing the bullish momentum.
- The Supertrend indicator has turned green, another sign of an ongoing uptrend.
Resistance and Support Levels
CAKE is currently testing resistance at $2.65. A successful breakout above this level could see the token climb toward $2.95, its highest point in February 2025.
However, if CAKE fails to sustain its momentum, a pullback to $2.33 is possible. Analysts suggest that for the bullish trend to continue, CAKE must hold above the $2.40–$2.70 support range. If it does, the next upside target remains at $2.90.
PancakeSwap’s rising dominance in the DEX market, Binance-related catalysts, and strong technical indicators have positioned CAKE for sustained bullish momentum. With growing trading activity, institutional backing, and continued token burns, CAKE could be set for further gains in the coming days.
