Pendle TVL Hits $8.3B Driven by Yield Tokenization and High-Profile Backing

Pendle (PENDLE) has experienced a significant surge in Total Value Locked (TVL), reaching $8.3 billion as of August 12. This marks a substantial increase from earlier this year, reflecting growing adoption and confidence in the DeFi yield-trading platform. The milestone positions Pendle as one of the leading protocols in the decentralized finance space, surpassing the combined TVL of emerging blockchains such as Sui, Aptos, and Sei [1].

The rise in PENDLE’s popularity has been partly fueled by the actions of high-profile market participants. BitMEX co-founder Arthur Hayes recently disclosed a $1.02 million position in PENDLE as part of a broader $16.43 million altcoin accumulation, signaling renewed interest in Ethereum-based DeFi projects [1]. This move is particularly impactful as Hayes’ investment decisions are often interpreted as market signals by both retail and institutional investors.

Pendle’s growth is largely driven by its integration with yield tokenization strategies, especially within the Ethena (USDe) ecosystem. The platform now holds nearly 60% of the $7.7 billion supply of USDe, reinforcing its role in DeFi’s “infinite yield loop” strategies. The increasing TVL not only reflects strong adoption but also enhances the protocol’s revenue-generating potential, which in turn supports PENDLE’s valuation [1].

Technically, PENDLE is currently trading near $5.39, holding above its 30-day simple moving average ($4.64) and 200-day exponential moving average ($3.99). The MACD histogram has turned positive, suggesting early bullish momentum. However, the RSI-14 indicator is at a neutral level of 59.95, indicating balanced buying pressure [1]. On the downside, bulls are defending the $5.43 Fibonacci retracement level, but a sustained close above $5.97 is seen as a necessary condition to confirm a breakout [1].

Despite the recent uptick, PENDLE’s 24-hour trading volume has declined by 55.66%, highlighting cautious sentiment among traders [1]. Analysts suggest that the market will closely watch near-term resistance levels, particularly the $6.00 threshold, which could determine the next phase of PENDLE’s price action. With a TVL-to-market-cap ratio of 0.1265, Pendle is considered undervalued relative to its peers, offering potential for revaluation should adoption continue to accelerate [1].

Pendle’s TVL reaching record highs follows the launch of its yield-trading platform, which has attracted significant liquidity. As of August 4, TVL had already hit $8.27 billion [2]. The platform’s ability to attract and retain large amounts of capital positions it as a key player in the evolving DeFi landscape [3].

Source: [1] Pendle Surges in DeFi Rankings as TVL Hits $8.3B (https://coindoo.com/market/pendle-surges-in-defi-rankings-as-tvl-hits-8-3b/)

[2] Pendle Price, PENDLE Price, Live Charts, and Marketcap (https://www.coinbase.com/en-au/price/pendle)

[3] Leap Digital Investments (https://leapdigitalinvestments.com.au/)