DeFi
DeFi protocol Pendle sees 40% drop in TVL
- Pendle’s TVL has fallen sharply over the past week, from $6.2 billion to $3.7 billion.
- Meanwhile, the price of PENDLE is down 16% over the same period.
Pendle, the yield tokenization protocol that enables trading of yield-generating crypto assets, has seen the total value locked (TVL) of assets on the platform drop by more than 40% in a week.
Data shows that the DeFi protocol’s TVL exceeded $6.18 billion last week.
However, this amount has now fallen to $3.7 billion, with DeFiLlama Data showing a sharp decline that reflects the 40% decrease.
Why is Pendle TVL down?
Well, the market as a whole is down as cryptocurrencies struggle with selling pressure.
However, this drop in Pendle’s TVL also comes amid the maturation of several liquid staking markets within the DeFi project ecosystem. The impacted markets that saw huge pool tokens mature for repurchase included Ether.Fi, Renzo, Puffer, and Swell, among others.
Pendle markets this matured thursday include Ether.Fi’s eETH, Renzo’s ezETH, Puffer pufETH, Kelp’s rsETH, and Swell’s rswETH.
Pendle’s TVL grew rapidly in the first half of 2024 as liquid resttaking protocols attracted more users, particularly amid heightened anticipation for market airdrops such as EigenLayer.
Despite the drop, the protocol has introduced several other new assets for users to join, including a short-dated eETH for July 25 and a long-dated eETH (for December 26). There is also a new pool series from September 26, Ethena USDe, Symbiotic and Mellow LRT, and Karak LRT, among others.
Pendle Prize
The price of PENDLE has also dropped in recent weeks.
Whale activity contributed to the scenario, as did the general hemorrhage of altcoins. According to CoinGecko, PENDLE’s value has dropped by 16% over the past week and is down nearly 3% in the past 24 hours (at the time of writing).