Increase in PENDLE's current market value: Why and What's the Reason?
In the world of decentralised finance (DeFi), Pendle (PENDLE) has been making waves with a significant price increase. This surge can be attributed to a combination of increased trading volume, technical bullish indicators, protocol growth, and institutional capital inflows, as well as integration with other DeFi platforms and improved accessibility.
Key Factors Behind the Price Surge
The recent surge in Pendle's token price has been marked by a 20-30% increase above $5, triggered by a 242% spike in trading volume. This strong buyer interest and positive technical signals, such as bullish Bollinger Bands and MACD crossovers, have contributed to the rally.
Whale transfers and growing Total Value Locked (TVL) in the protocol, reaching over $8 billion as of August 2025, reflect institutional inflows estimated at $41 billion into DeFi in general. This boosts fees and token demand for Pendle.
Expanding ecosystem integrations with platforms like Aave, Lido, Ethena, EigenLayer, and new pools like HyperEVM have enhanced liquidity and utility, attracting more users and increasing token usage. Improved onramping via fiat gateways, such as Alchemy Pay, have made the token more accessible to new investors.
Governance participation with around 37% of the circulating supply locked in vePENDLE, aligns long-term incentives and fosters stability.
Sustainability of the Momentum
Analysts caution that Pendle must maintain volume and break above key resistance levels, notably $5.5, to avoid a correction or consolidation below $5, which could undermine the rally. Pendle’s price is heavily influenced by overall DeFi market sentiment and whether TVL continues growing. Any broad DeFi contraction or regulatory volatility (e.g., China's stablecoin crackdown) poses risks.
Price forecasts remain optimistic with some technical predictions expecting Pendle to exceed $11 by the end of August 2025 if yield tokenization adoption and liquidity pool growth continue accelerating. Longer-term price projections vary but generally anticipate upward trends aligned with DeFi ecosystem expansion and institutional adoption, reaching potentially over $14 by 2028.
However, potential risks include market volatility and regulatory uncertainties that could temper gains.
Improved Accessibility and Growth Indicators
Pendle's accessibility has improved through fiat onramps like Alchemy Pay, making it easier for new participants to join. The bull flag breakout has been confirmed, with the price now testing support above $5 for potential further gains.
The rally in PENDLE's price is reinforced by both fundamental and technical factors. USDe from Ethena Labs now constitutes 60% of Pendle's total value locked, which is currently $5.2 billion. The same wallet still holds over $135 million in PENDLE, leading some market watchers to speculate that the transfer may be related to liquidity management or potential partnerships.
More protocols and structured pools are entering Pendle's ecosystem, suggesting accelerating growth. Pendle's total value locked has climbed to all-time highs despite $1.5 billion in maturities last week. HyperEVM pools in Pendle surpassed $100 million in TVL soon after launch, and SUSDe pools in Pendle have already hit their $100 million cap.
The protocol's growth is also indicated by integrations with Aave, Ethena, and HyperEVM pools, boosting liquidity and ecosystem expansion.
In conclusion, the surge in Pendle’s token price can be attributed to strong fundamental growth in its TVL and integrations, combined with favorable technical trading conditions and increased market interest. Continuing momentum will depend on sustained volume, holding key support/resistance levels, and positive broader DeFi market developments. Potential risks include market volatility and regulatory uncertainties that could temper gains.
Investing Opportunities in DeFi:The surge in Pendle's token price, driven by increased trading volume, positive technical signals, and protocol growth, provides an intriguing investment opportunity within the decentralized finance (DeFi) sector.
Technological Integrations Boosting Growth:The boost in liquidity and utility, achieved through integrations with platforms like Aave, Lido, Ethena, EigenLayer, and networks such as HyperEVM, positions Pendle at the forefront of DeFi technology advancements.
