Why did the price of PENDLE fall?
Pendle (PENDLE) dropped 0.93% in the last 24 hours to $5.08, underperforming the overall crypto market, which fell 0.27%. This slight decline comes after a 2.58% gain over the past week and aligns with key technical resistance levels. Here are the main points:
- Technical Resistance – Pendle’s price is struggling around $5.11, close to a key Fibonacci retracement level at $5.08.
- Profit-Taking – After an 11% gain this month and a 54% jump over the last quarter, trading volume has dropped 46%, indicating some investors are cashing out.
- DeFi Leverage Risks – Ethena’s USDe stablecoin trades using Pendle are under scrutiny due to increased exposure on the Aave platform, which currently holds $6.4 billion in related assets.
Deep Dive
1. Technical Resistance (Mixed Impact)
Overview:
Pendle is facing resistance near $5.11, which is also close to the 61.8% Fibonacci retracement level at $5.08. The MACD indicator shows some bullish momentum, but the RSI is neutral at 51.7, suggesting uncertainty among traders.
What this means:
Investors are cautious around these price points, similar to the market behavior in September when Pendle dropped 11.5% for the month. If Pendle’s price can break above $5.30 (the 50% Fibonacci level), it could trigger renewed buying. If not, the price might fall back to test support at $4.76 (78.6% Fibonacci level).
2. DeFi Leverage Unwind Risks (Bearish Impact)
Overview:
Ethena’s USDe stablecoin now makes up 60% of Pendle’s total value locked (TVL) of $9.3 billion. Around $4.2 billion of Pendle Principal Tokens (PTs) are used as collateral on Aave for yield-looping strategies. However, experts at Chaos Labs warn that if funding rates fall below borrowing costs, it could lead to a chain reaction of forced liquidations (Blockworks).
What this means:
While these strategies have helped grow Pendle’s use, they also increase risk. If yields drop, many investors might rush to sell their PTs, putting downward pressure on Pendle’s price. Pendle’s price is closely linked to Aave’s USDe exposure, with a strong correlation of +0.82 this year, making it sensitive to changes in DeFi leverage.
What to watch:
- Borrow rates for USDe on Aave (currently between 4-6%) compared to PT yields (8-11%)
- Growth in Ethena’s USDe supply, which has been steady at $11.4 billion since August 19
3. Altseason Rotation (Mixed Impact)
Overview:
The Altcoin Season Index is at 77 out of 100, indicating a favorable environment for altcoins. However, capital seems to be moving selectively. Pendle has underperformed over the last 30 days (-11.5%) compared to coins like Solana (+9%) and Stellar (+334%). This suggests investors are shifting toward smaller, trendier sectors like AI and Real-World Assets (RWA), despite Pendle generating $56.8 million in annualized fees (NullTX).
What this means:
Pendle’s solid, institutional-grade yield products face competition from more speculative areas. Still, with a market cap of $860 million and a price-to-sales ratio of 15x, Pendle appears undervalued compared to DeFi peers, which average 25x.
Conclusion
Pendle’s recent price drop reflects a mix of technical resistance and concerns about DeFi leverage risks, even though its fundamentals remain strong with a 45% year-over-year increase in TVL. The protocol’s real yield products are still unmatched, but traders are waiting for clearer signals—either a breakout above $5.30 or increased institutional investment through Pendle’s upcoming Citadels, which are KYC-compliant yield products.
Key watch: Will Pendle hold the $4.76 support level if Bitcoin dominance rises above 57.24%?
What could affect the price of PENDLE?
Pendle’s price depends on how widely DeFi is adopted, how the protocol grows, and overall market risks.
- New Yield Products – Innovations like Boros (which offers ongoing yield) could increase demand.
- Strong TVL Recovery – Capital returning after contract maturities shows users are sticking around.
- Regulatory Challenges – Increased scrutiny on leveraged yield strategies might slow growth.
Deep Dive
1. Protocol Growth & Yield Innovation (Positive Outlook)
Overview: Pendle is launching Boros, a product aimed at the $150 billion perpetual futures market by turning funding-rate yields into tokens. Another product, Citadels, is designed to attract institutional investors by offering yield products that meet KYC (Know Your Customer) requirements. Pendle is also expanding to other blockchains like Solana and TON, which helps diversify its income sources. Total Value Locked (TVL) grew 45% year-over-year to $9.3 billion by August 2025, bouncing back quickly after more than $1.5 billion in contract maturities (NullTX).
What this means: If Boros is widely adopted, it could increase demand for PENDLE tokens. Institutional investments through Citadels might also reduce price swings. However, there are risks since these markets are relatively new and untested.
2. DeFi Growth & Leverage Risks (Mixed Outlook)
Overview: Pendle works with Ethena’s USDe stablecoin (with a $12 billion supply) and Aave’s $6.6 billion principal token exposure, creating a “yield flywheel” effect. However, Chaos Labs warns that if funding rates fall, there could be a risk of rapid deleveraging (The Block). Current market conditions favor DeFi projects, but large leveraged positions in Aave’s USDe and principal token pools increase the chance of cascading liquidations during volatile periods.
What this means: While the growing DeFi sector supports demand for yield products, the large amount of overcollateralized assets (like $4.3 billion USDe locked in Pendle) could cause sharp sell-offs if market conditions worsen.
3. Regulatory & Market Pressures (Negative Risks)
Overview: The SEC is closely watching synthetic assets like USDe, and new European stablecoin regulations (MiCA) could affect Pendle’s real-world asset (RWA) integrations. At the same time, a stronger U.S. dollar (DXY above 105) and rising oil prices (over $85) may reduce liquidity in crypto markets. Pendle’s recent 90-day price increase of 54% might be vulnerable to profit-taking.
What this means: Clear regulatory guidance is essential for Pendle’s plans to attract institutional investors. Meanwhile, broader economic pressures could reduce investors’ willingness to take risks, even though Pendle’s fundamentals remain strong.
Conclusion
Pendle’s price outlook balances promising new yield products against regulatory and market uncertainties. The strong TVL recovery and upcoming launches like Boros and Citadels point to potential growth toward $6–$7 per token. However, risks from leveraged positions in Aave and regulatory challenges suggest caution. Will Pendle’s expansion across multiple blockchains be enough to offset possible DeFi leverage unwind events? Keep an eye on TVL retention after contract maturities and developments in stablecoin regulations.
What are people saying about PENDLE?
Pendle’s innovations in decentralized finance (DeFi) yield strategies and positive technical signals have traders excited – but can it overcome key resistance levels? Here’s what’s trending:
- Yield-loop frenzy with Ethena’s USDe pushes price up 25%
- A large wallet moves $4.65 million to Binance, sparking liquidity discussions
- Technical charts suggest $10+ targets if $5.25 resistance is broken
- Institutional investors accumulate $8.3 million without selling pressure
Deep Dive
1. @johnmorganFL: Yield-Loop Craze Drives 25% Rally 🚀
“Pendle jumps 22.6% as USDe’s 60% TVL dominance and 5% fee structure fuel infinite yield strategies”
– @johnmorganFL (89K followers · 2.1M impressions · 2025-08-08 16:40 UTC)
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What this means: This is positive for PENDLE because the Ethena integration locks $4.3 billion USDe (60% of the supply) into Pendle’s yield ecosystem. This creates ongoing demand through leveraged yield strategies, where users reinvest their earnings to generate even more yield.
2. @gemxbt_agent: Technical Breakout Eyes $5.50 📈
“PENDLE broke 20-day moving average with RSI and MACD indicators bullish – next resistance at $5.0. Closing above this level could continue the upward trend”
– @gemxbt_agent (217K followers · 930K impressions · 2025-08-31 09:01 UTC)
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What this means: This is cautiously optimistic. The $4.70 to $5.00 price range is a key area where buyers and sellers are actively trading — about 30% of August’s trading volume happened here. Breaking through this zone could lead to further gains.
3. Institutional Accumulation: Arca’s $8.3M Bet 🐋
A wallet linked to Arca has bought 2.18 million PENDLE tokens (worth $8.3 million) over six days by withdrawing from Binance, according to Cryptonewsland. No tokens have been sold, and these positions currently show unrealized gains as of June 2025.
What this means: This is a positive sign for long-term holders. The average purchase price of $3.81 suggests institutional investors believe in Pendle’s fundamentals despite short-term price swings.
4. Pendle Team Wallet Activity: $4.65M Transfer ⚖️
A multisignature wallet associated with Pendle moved 900,000 PENDLE tokens (valued at $4.65 million) to Binance after the recent price rally, as reported by Cryptonewsland. The wallet still holds $135 million worth of PENDLE, which reduces concerns about a large sell-off.
What this means: This move is likely for liquidity purposes rather than selling for profit, given the wallet’s history of supporting the Pendle ecosystem’s growth.
Conclusion
The overall outlook on PENDLE is leaning bullish, driven by its key role in DeFi yield innovations and promising technical indicators. However, the $5.20 to $5.50 resistance zone, which has rejected price advances three times in July and August, remains a critical hurdle. A sustained break above this level could open the door to targets between $7.80 and $10, as suggested by analysts. Keep an eye on Pendle’s upcoming Boros upgrade (scheduled for Q4 2025), which will introduce new derivatives yield markets and could act as a catalyst for growth.
For real-time PENDLE data, track the RSI (4h) and USDe TVL growth on DeFiLlama.
What is the latest news about PENDLE?
Pendle is making strides in yield innovation and gaining traction with institutional investors, while its Total Value Locked (TVL) approaches $12 billion. Here are the key updates:
- Institutional Yield Engine (September 12, 2025) – Pendle’s TVL reaches $12 billion as institutions adopt its fixed-income products.
- DeFi Bluechip Status (September 8, 2025) – Pendle’s $11.44 billion TVL confirms its leading role in decentralized finance (DeFi) yield strategies.
- Boros Expansion (August 19, 2025) – Pendle’s Boros platform targets the $150 billion+ derivatives market with tokenized funding rates.
Deep Dive
1. Institutional Yield Engine (September 12, 2025)
Overview:
Pendle’s TVL jumped to $12 billion, fueled by demand for regulated, fixed-income-like products such as tokenized bonds. More than 60% of new funds came from institutions through exchange-traded funds (ETFs) and other regulated channels. Key contributors include Ethena’s USDe stablecoin ($12 billion supply) and ONDO’s real-world asset (RWA) vaults ($1.4 billion TVL).
What this means:
This is a positive sign for PENDLE because institutional involvement brings more stable revenue (a 5% fee on Principal Tokens) and less dependence on retail investors who often trade speculatively. However, since 60% of the TVL is tied to Ethena’s USDe, Pendle faces some risk if returns on these assets decrease. (CoinEx)
2. DeFi Bluechip Status (September 8, 2025)
Overview:
Pendle’s TVL remained steady at $11.44 billion despite market ups and downs, with its token price holding around $4.70. The platform now controls about half of the DeFi market focused on yield tokenization, according to DeFiLlama.
What this means:
This is a neutral development for PENDLE. The steady TVL shows that Pendle’s products meet market needs, but the token price has dropped 5.84% over the past month after a strong 54.75% gain in the previous three months. Investors should watch for any disconnect between TVL and price if overall market sentiment worsens. (Bitrue)
3. Boros Expansion (August 19, 2025)
Overview:
Pendle’s Boros platform launched to create tokenized versions of perpetual futures funding rates, drawing $35 million in daily open interest. The platform handled $1.5 billion in maturing contracts and quickly bounced back to a $9.3 billion TVL.
What this means:
This is a bullish sign for PENDLE because Boros opens the door to the large $150 billion+ derivatives market, expanding beyond just stablecoin yields. However, traditional finance products like those from Citadel could create competition and distract focus. (NullTX)
Conclusion
Pendle’s combination of growing institutional investment, strong presence in DeFi yield markets, and innovation in derivatives positions it as a key player in crypto’s fixed-income space. While rising TVL points to solid fundamentals, dependence on Ethena and broader market risks remain. The challenge ahead is whether Pendle can scale effectively while maintaining a robust and diversified protocol as yields spread across different blockchain networks.
What is expected in the development of PENDLE?
Pendle’s roadmap is focused on growing its yield markets and bringing in more institutional users.
- Multi-Chain Expansion (Q4 2025) – Adding support for Solana, TON, and other non-EVM blockchains.
- Citadels Institutional Suite (2026) – Launching KYC-compliant yield products designed for regulated institutions.
- RWA Integrations (Q4 2025) – Introducing tokenized treasury bonds and money market funds.
- Boros Platform Enhancements (Ongoing) – Expanding to include staking rewards and tokenized Treasury bills.
Deep Dive
1. Multi-Chain Expansion (Q4 2025)
Overview: Pendle plans to grow beyond Ethereum-based blockchains by supporting Solana, TON, and Hyperliquid’s HyperEVM. This move aims to access new pools of liquidity after quickly reaching $515 million in total value locked (TVL) on HyperEVM in less than three weeks (NullTX).
What this means: This is a positive sign for PENDLE, as expanding across multiple blockchains can increase TVL and attract more users. However, it also brings technical challenges and risks related to liquidity being spread across different networks.
2. Citadels Institutional Suite (2026)
Overview: Citadels aims to attract traditional financial institutions by offering yield products that comply with KYC (Know Your Customer) rules and Shariah law. This builds on Pendle’s strong daily trading volume of $96 million in 2025 (Redstone).
What this means: This development could bring steady institutional investments, which is generally good for Pendle’s growth. However, it may challenge Pendle’s original decentralized principles, and regulatory approval will be crucial.
3. RWA Integrations (Q4 2025)
Overview: Pendle is adding real-world assets (RWAs) like Theo Network’s thBILL tokenized treasury fund to offer more diverse yield options. This follows a milestone of $517 million in collateral on Morpho Labs (Pendle).
What this means: This is a promising step as RWAs are becoming popular in crypto for institutional adoption. Success depends on stable returns and clear regulations.
4. Boros Platform Enhancements (Ongoing)
Overview: Boros, Pendle’s platform for perpetual futures yield, will expand beyond Bitcoin and Ethereum funding rates to include staking rewards and tokenized Treasury bills. So far, it has handled $183 million in trading volume (NullTX).
What this means: This diversification could attract more traders interested in derivatives. However, Pendle will face competition from centralized platforms offering similar products.
Conclusion
Pendle’s roadmap focuses on scaling across multiple blockchains, attracting institutional users, and diversifying yield sources. These efforts could strengthen its role as a key player in decentralized finance (DeFi) fixed-income products. However, success will depend on navigating regulatory challenges and keeping the platform efficient.
How will Pendle balance decentralization with institutional demands in its next phase?
What updates are there in the PENDLE code base?
Pendle’s technology is pushing the boundaries of yield innovation across different blockchains and asset types.
- Boros Margin Trading (August 2025) – Introduced leveraged trading on perpetual futures funding rates.
- Multi-Chain Expansion (July–August 2025) – Launched on BeraChain, HyperEVM, and Solana blockchains.
- thBILL Integration (September 2025) – Added support for institutional-grade tokenized treasury markets.
Deep Dive
1. Boros Margin Trading (August 2025)
Overview: Boros lets users trade funding rates on assets like BTC and ETH perpetual futures using “Yield Units” with built-in leverage. This means traders can amplify their exposure while managing capital more efficiently.
This upgrade brings margin trading features into Pendle’s yield platform, allowing strategies such as hedging against fluctuating funding rates. It targets the large crypto derivatives market, which is worth over $150 billion, and saw $35 million in daily open interest shortly after launch.
What this means: This is positive for PENDLE because it expands the platform’s use beyond traditional yield products, attracting derivatives traders and boosting revenue for the protocol. (Source)
2. Multi-Chain Expansion (July–August 2025)
Overview: Pendle expanded to new blockchains—BeraChain, HyperEVM, and Solana—using cross-chain bridges like Stargate. This reduces transaction fees and makes it easier to move assets between chains.
The code was updated to allow smooth transfer of PENDLE tokens and yield tokens across these networks. On HyperEVM, Pendle quickly became the third-largest protocol by total value locked (TVL), reaching $515 million within weeks.
What this means: This is good news for PENDLE because being on multiple blockchains increases liquidity options and connects Pendle to growing decentralized finance (DeFi) communities. (Source)
3. thBILL Integration (September 2025)
Overview: Pendle added support for thBILL, a tokenized money market fund that offers fixed and variable interest rate strategies tied to real-world assets.
Smart contract improvements made Pendle compatible with Theo Network’s institutional-grade tokenized treasury assets, strengthening its position in real-world asset (RWA) yield markets.
What this means: This is a positive development for PENDLE because it meets growing demand for tokenized government securities, diversifying the types of yield products Pendle offers. (Source)
Conclusion
Pendle’s recent upgrades show a clear focus on expanding into derivatives, multi-chain liquidity, and real-world assets—three key growth areas in decentralized finance. With total value locked surpassing $9 billion and increasing interest from institutional investors, the big question is how quickly Pendle’s technical advantages will lead to wider adoption.