PENDLE Price Outlook as TVL Hits Record High
Pendle [PENDLE], a decentralized finance (DeFi) protocol focused on yield tokenization, has reached a major benchmark. As of press time, its Total Value Locked (TVL) stands at $11.4 billion — a sharp rise from $2.9 billion in mid-April. This near 4x growth in just a few months signals increased user adoption and a stronger position in the DeFi ecosystem.
What’s Driving the Growth?
A major factor behind this surge is the integration of Pendle with Ethena [ENA] and Aave [AAVE], forming a capital-efficient yield engine that mimics traditional finance strategies.
In this structure, Ethena issues USDe — a synthetic dollar-pegged asset — which generates yield for stakers. Pendle then splits this USDe into two components: Principal Tokens (PTs), representing the base value, and Yield Tokens (YTs), which capture the ongoing yield.
PTs are sold at a discount and redeemed 1:1 at maturity. Aave completes the loop by enabling users to borrow against PTs. The borrowed assets are recycled back into Ethena to mint more USDe, which is then funneled back into Pendle — creating a self-reinforcing liquidity cycle.
The EVM compatibility of all three platforms allows seamless integration. With the potential addition of Hyperliquid [HYPE], this cycle could extend into perpetual futures markets.
What’s Next for PENDLE?
Crypto analyst Ali Martinez noted on X,
“PENDLE is approaching the $4.4 support level, which marks the lower boundary of an ascending channel.”
If the level holds, it could open the door to a rally toward the $7 resistance — though no outcome is guaranteed.
