Pendle's Explosive TVL Growth Contrasts With Undervalued Token

Pendle (PENDLE) has achieved a significant milestone with its Total Value Locked (TVL) surpassing $12 billion, marking a new all-time high and signaling increased adoption of the DeFi protocol. As of the latest data, Pendle's TVL has surged by more than 51% in the past 30 days, pushing it to the sixth position among DeFi protocols by TVL. Despite this growth, the PENDLE token remains outside the top 30 in market capitalization, highlighting a potential disparity between the protocol's market position and token valuation.

This rapid increase in TVL is attributed to Pendle's role in the DeFi yield space, particularly through the Ethena-Pendle-Aave DeFi engine. In this structure, Ethena issues USDe, a yield-bearing stablecoin, which Pendle then tokenizes into Principal Tokens (PTs) and Yield Tokens (YTs). Aave enables further leverage by allowing investors to borrow against PT deposits, which can be reinvested into USDe, reinforcing the capital recycling loop. This mechanism has contributed to Pendle's ability to process a $1.5 billion maturity event without disruption, demonstrating its resilience and capacity to scale.

Pendle’s TVL growth also aligns with broader trends in decentralized finance, where yield-bearing strategies have become central. The protocol’s annualized fees currently stand at $72 million, yielding a price-to-fees ratio of approximately 10x, a metric that the research team at CaptainAltcoin has cited as favorable compared to similar platforms such as Ethena (ENA) or Hyperliquid (HYPE). This suggests that the market may not yet be fully pricing in Pendle’s revenue potential, offering an attractive entry point for investors.

In addition to on-chain activity, Pendle benefits from rising decentralized exchange (DEX) volume, which has reached $300 million in daily all-time highs. Each transaction generates revenue for vePENDLE holders, creating a direct link between protocol usage and token value appreciation. The CaptainAltcoin Research team has identified several upcoming catalysts for Q4 2025 that could further bolster Pendle’s ecosystem, including the launch of Citadels—KYC-compliant yield products and fiat ramps aimed at attracting institutional investors—as well as Boros, which is already boosting capital efficiency through funding-rate arbitrage. Additionally, Pendle's expansion to Solana, TON, and Hyperliquid is expected to bring new liquidity and user bases.

Looking ahead, technical analysis from crypto analyst Ali Martinez suggests that PENDLE is nearing a critical support level at $4.4, a price that represents the lows of an ascending channel. If the token holds above this level, analysts believe a potential rally to $7 could become viable. Given Pendle’s current market positioning and the anticipated catalysts, the protocol is being positioned as a key player in DeFi yield strategies, with a potential for further growth as the ecosystem continues to evolve.