PENDLE TVL Experiences Rapid Growth as Price Struggles to Gain Momentum
PENDLE TVL, or Total Value Locked, has seen an exponential increase from $200 million to an impressive $6.633 billion in 2024. Despite this significant growth, the price of Pendle has been facing challenges in moving upward.
Currently, the price of Pendle is hovering around $5.43, showing a 4% gain in the past 24 hours. While this gain is positive, it is not reflective of the substantial increase in TVL.
The Pendle Protocol is a decentralized finance (DeFi) platform that allows for the tokenization and trading of future yields. With its unique automated market maker (AMM) approach, Pendle supports assets with time decay, granting users greater control over their future yield and providing a more efficient way to generate yield. The platform’s design addresses issues such as volatility and underlying asset performance, enabling the creation and trading of new financial instruments.
Notably, Arthur Hayes, a prominent figure in the cryptocurrency space, has recently locked over 1.65 million PENDLE tokens, amounting to approximately $8.5 million, until September 2024. However, on June 6th, 2024, he decided to unstake PENDLE tokens worth over $9.41 million. This staking activity by Hayes has caught the attention of other large investors in the asset.
Despite a decline in earnings, venture capitalists remain confident in the potential of Pendle. The token has a maximum supply of 258,446,028 PENDLE, with 154.5 million tokens currently circulating in the market. The top 10 token holders on the Ethereum blockchain control around 68.9% of the total supply.
According to Coincarp, Pendle has a TVL of $6.48 billion, representing a significant increase from its initial $200 million value. Since its inception, the platform has facilitated over $20.8 billion in trading volume.
Pendle offers attractive yields on different assets, such as 4.02% on stETH, 21.3% on eETH, and 20.19% on rsETH, as listed on their website. Inflows into the platform have also shown substantial growth, reaching an average daily amount of $35 million.
While Pendle’s TVL and user base have been steadily growing, the price of PENDLE has faced challenges. It currently has a market capitalization of $839 million, ranking it 88th in the cryptocurrency market. However, its trading volume has declined by 35% in the past 24 hours. PENDLE’s price currently sits at $5.43, experiencing a small drop during the intraday session.
On the bright side, Pendle is displaying bullish candle patterns on the daily chart. Additionally, it is trading near the 50 and 100-day exponential moving averages (EMAs), which could potentially lead to a bullish crossover in the near future.
The upside trend for PENDLE’s price could face resistance near $7, while its support level appears to be around $5. The relative strength index (RSI) for PENDLE is currently around 49, indicating a slightly bearish sentiment.
To summarize, Pendle TVL has undergone significant growth, and the platform has seen a surge in active users. While the price of PENDLE has struggled to gain momentum, it is currently in a weak bullish trend and has the potential to reach new highs in the future.
Please note that this article is for informational purposes only and does not provide any financial or investment advice. The author and any individuals mentioned in this article are not liable for any financial losses resulting from investments or trades. It is essential to conduct thorough research before making any financial decisions.