Pendle TVL has experienced a remarkable surge of 20x in 2024, reaching a total value locked of $5.4 billion. However, the price of the PENDLE token has seen a slight decline of 2% and is currently trading around $6, displaying weak bullish candles.
Pendle is a protocol designed to tokenize and trade future yields while also creating an automated market maker (AMM) that supports assets with time decay. The protocol separates yield-bearing assets into separate yield and principal components, providing maximum control. It also offers maximum liquidity and a dual fee structure for yield trading.
Pendle Finance provides a 3.04% yield on stETH and a 19.36% yield on rsETH. It is compatible with multiple blockchains and has seen a surge in trade volume across all supported chains.
The strong inflow and TVL growth in Pendle’s ecosystem may trigger a bullish run. The protocol’s novel approach allows users to manage and capitalize on future yields in a flexible and innovative manner. The PENDLE token is used for network security, staking, and participation in the ecosystem’s governance.
The protocol has observed a strong outflow of PENDLE tokens from exchanges compared to the inflow. It has over 25,000 holders, with 21% of them classified as diamond hands (holding for over one year). The total supply of PENDLE tokens is 258.44 million, with holdings distributed among CEX (19.36%), contracts (42.54%), and EOA clusters (25.2%).
Pendle’s TVL has reached a new high in May 2024, nearing $5.74 billion. This represents a 20x growth since the beginning of the year. Although the daily revenue of the protocol has declined from a peak of $140k to $60k within a month, the median APY remains at a solid 10.3%.
The creation of new Pendle wallets has experienced a slight decline recently. However, the total transactions of the protocol have surged to a new high.
Considering the price action scenario, PENDLE bulls may have the potential to move beyond $10. The token currently has a market cap of $988 million and ranks 87th in the cryptocurrency market. The recent surge in trading volume indicates market interest. The token’s price is currently trading around $6.4, forming weak bullish candles on the daily chart.
Although the upside momentum of PENDLE may face resistance near $8, a potential bounceback could occur from $5. The RSI is currently at 63, showing a positive slope, but the overall momentum of the RSI and MACD indicators is bearish.
In conclusion, Pendle has witnessed significant growth in 2024, with its TVL surging to nearly $5.74 billion. While the PENDLE token’s price is currently in consolidation, it has the potential to reach new highs in the future.