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CAKE, the token issued by PancakeSwap has recently seen an impressive 54% increase in just seven days. This is a notable event in blockchain and decentralized financial (DeFi). The fact that PancakeSwap is gaining prominence in the industry of decentralized finance can be seen by the fact the token market value reached $900 million with a fully-diluted valuation at $1.3 billion.

Burning Tokens in a Strategic Way

PancakeSwap's strategic decision to burn tokens on December 26 led to the destruction of over 10 million CAKE tokens worth around $34million. CAKE's price increased significantly as a result. This action led to a 40% reduction in supply. This increased the scarcity of the tokens and made it more attractive. The token burning not only made investors feel good, but also contributed to the platform becoming a more popular decentralized exchange.

Accumulation and Performance of the Market

CAKE managed to maintain a strong performance in spite of the consolidation on the market. The price of the token continued to rise and reached $3.37. This was higher than its previous value of $2.1. This price action was a departure from a falling wedge pattern. The burn caused a decrease in the number of CAKE tokens in circulation. This brought the total tokens from 275 to 265 and increased the price by 18%. The 24-hour trading volume for CAKE also increased by 37%, reaching a total $284 million. This is a rise of over 50% in just one month.

Proposal of a recent Supply Cap

A new suggestion made by the PancakeSwap Community on December 21, contributed to CAKE's popularity spike. Once this idea was developed, it was suggested that the entire CAKE supply be reduced from 750 to 450 millions. The modification was done for several reasons. These include the fact that CAKE had been consistently deflationary in the past few months, aspirations to achieve ultrasonic CAKE and the need to get away from hyperinflationary tokenomics. The market accepted the revisions much more than before, as evidenced by the 21% increase in CAKE's price after the proposal.

The Monetary Policy Committee of the Central Bank of the Republic of Turkey appointed Professor Fatma Ozkul to the position. Prof. Ozkul is a well-known specialist in crypto assets and blockchain technology. The Turkish President Recep Erdogan made this appointment. This appointment will come into effect on December 23rd, 2023. It represents an integration of blockchain knowledge and cryptocurrency within the framework for the nation's financial policy.

According to President Erdogan's plan, Professor Ozkul's hiring is part of a larger initiative aimed at restructuring Turkey’s economic team. Erdogan, after winning the May general elections, took the initiative to create a new economic group. In this process, Erdogan appointed Hafize Gaie Erkan, an ex-banker from Goldman Sachs to the position as governor of the Central Bank. This strategic decision is in accordance with Turkey's increasing emphasis on digital banking. The first test of the Digital Turkish Lira was successful in 2022.

Professor Ozkul has taught accounting, finance and auditing since 2012 at Marmara University, Istanbul. Auditing, finance, and accounting are his areas of expertise. Her academic and research efforts have heavily incorporated blockchain technology and digital assets, which culminated in the publication of a book about crypto asset accounting by 2022. Professor Ozkul will bring her extensive knowledge of digital finance and her experience to the Monetary Policy Committee when she takes on her new role. This is an important instrument in controlling inflation in Turkey.

The Turkish political and economic environment has created favorable conditions for Bitcoin use. Chainalysis reports that Turkey has recorded almost 170 billion dollars in cryptocurrency transactions between July 20,22 and June 20,23. This places Turkey in the fourth position worldwide for raw transaction volume. The Turkish government, in response to the recent surge in cryptocurrency activity is looking at the possibility of passing laws for the industry. They are focusing on licensing and taxation. The goal is to lower Turkey's ranking on the "greylist" maintained by Financial Action Task Force, and bring it in line with global financial standards.