- The exponential rise caused PENDLE holders to lock in gains
- The price rally can be linked to a rise in deposits on parent platform Pendle Finance
PENDLE, the native token of the decentralized finance (DeFi) protocol Pendle Finance, has emerged as a hot commodity due to an astronomical increase in value in recent weeks.
Why PENDLE is in the news?
The altcoin has risen in value by almost 5o% over the week, and by a whopping 108% in a month. CoinMarketCap. Since the beginning of the year, PENDLE has increased in value by over 5x and had a market cap of over $1 billion at the time of writing.
The upward trend led to a sharp increase in the profitability of coin holders. According to AMBCrypto’s analysis of Santiment’s data, approximately 99.73% of PENDLE’s total offering was profitable at the time of writing.
Furthermore, an average PENDLE holder can realize a 50% return on their investments, as evidenced by the 30-day MVRV ratio.
Source: Santiment
Moreover, holders are already finding it difficult to resist such temptations. For example – According to an on-chain tracking platform Spot on chain, A trader was seen moving a large portion of his PENDLE holdings to cryptocurrency exchange Binance.
The investor transferred 200,000 tokens on Thursday, worth $1.25 million at the time of writing. Just four days prior to this transaction, they deposited 162,000 tokens, worth $919,000. Both transfers took place when PENDLE was reaching its peak.
Interestingly, they bought these tokens in 2022-2023, when the price of PENDLE was $0.147. The whale still has 200,000 PENDLE in his wallet, indicating further price increases are expected.
Pendle Finance sees a spike in TVL
PENDLE is the governance token of Pendle Finance, a unique platform that allows users to trade and price tokenized yield assets. The rally can be linked to a rise in deposits on the platform, which stood at almost $4 billion at the time of writing.
Source: DeFiLlama
Further investigation by AMBCrypto revealed that the recent TVL boost was due to large inflows of USDe, a so-called synthetic stablecoin from Ethena Labs. The asset appeared to offer a 37% annual return at the time of writing, encouraging users to deposit them on Pendle and increase their income.