- CAKE’s supply has dropped by 3.78M, continuing its deflationary trend, with a total reduction of 18.77M CAKE since the phase began.
- The price is testing key resistance at $2.76, showing strong bullish momentum with a 55% gain this week amid a descending wedge.
- A breakout above $3.70–$4.50 could confirm trend reversal, with potential upside targets between $7.00 and $11.00 if buying sustains.
The supply of CAKE is on downward trajectory, showing a notable decrease in recent months. The total supply has dropped to 372,501,197 CAKE from 376,287,075, a reduction of 3,785,878 CAKE. Since the beginning of its deflationary phase, the supply has shrunk by 18,777,792 CAKE, reflecting a 4.8% decline. Moreover, the current inflation rate is at -0.9 CAKE per block, highlighting the ongoing contraction in the circulating supply.
Supply Dynamics Indicate Deflationary Trend
CAKE’s transition from an inflationary to a deflationary asset is depicted in the supply chart. The supply first rose gradually until peaking in late 2023. Since then, it has shown a declining tendency that has continued into 2024 and 2025. The circulating supply’s oscillations point to recurring increases and decreases that are probably caused by burns, withdrawals, or changes in issuance.
The data shows three distinct phases. Mid-2023 saw an increasing supply, while early 2024 marked stabilization. The latter half of 2024 and early 2025 show a sharp decline. The transition from a rising supply to contraction indicates changes in tokenomics. Besides, the linear trendline confirms the ongoing supply decrease, with a more pronounced drop evident in early 2025.
CAKE Price Eyes Breakout from Key Resistance
Alongside supply contraction, CAKE’s price action is approaching a critical technical juncture. The token has faced multiple rejections from a descending trendline, making it a significant resistance level. Currently, CAKE is testing a mid-support/resistance zone. If this level holds, the next move could be a breakout attempt.
Since early 2022, CAKE has been in a prolonged downtrend, forming lower highs and lower lows. A descending wedge pattern has emerged, with the price now rebounding from a support zone near $1.40. Currently trading around $2.76, CAKE has gained over 55% this week alone, indicating strong bullish momentum.
If the price successfully breaks above the descending wedge, it could confirm a trend reversal. The next resistance levels lie at $3.70 and $4.50. Moreover, if buying pressure sustains, CAKE could target higher levels between $7.00 and $11.00.
