Pendle is a DeFi (Decentralized Finance) protocol designed to let users buy and sell future interest income as a tradable asset in the present. Unlike traditional models where users simply deposit funds and wait to earn interest, Pendle enables the separation of yield from the principal and allows users to trade that yield separately—creating a structure similar to the derivatives market.
This project was launched in 2021 by Tectonic Labs. From the early development phase, the team included members with experience from platforms like Balancer and Venture DAO, forming a strong technical foundation. Especially since the second half of 2023, institutional capital has begun flowing in, drawing greater market attention.
Pendle’s core mechanism is the “Interest Splitting Token Structure.” For example, when a user deposits Ethereum into a DeFi service via Pendle, the asset is split into two tokens:
PT (Principal Token): Represents the original principal and is redeemable upon maturity.
YT (Yield Token): Represents the future interest and can be freely traded in the market.
This system allows users to cash out interest income in advance, or conversely, buy YT tokens speculatively in anticipation of rising yields. As a result, the Pendle ecosystem supports hedging, yield-enhanced investing, and liquidity provision based on interest rate volatility.
As the DeFi market transitions from a slump to structural reorganization, interest in institution-grade yield products has grown. Pendle aligns with this demand and showcases practical applications for interest-based structured products.
Combined with features like EigenLayer’s restaking and Ethena’s USDe, Pendle is gaining traction among community-driven integrations. As of June 2025, Pendle’s TVL (Total Value Locked) surpassed $8 billion, marking an all-time high. Liquidity is also rising rapidly not only on Ethereum mainnet but also on scaling chains like Arbitrum and Blast.
Moreover, recent tracking of Pendle YT tokens held in a BlackRock-affiliated fund wallet has further fueled speculation around institutional adoption.
Technically, RSI currently sits at 42.01, not quite in the oversold zone but hovering near a bottom support level. The deceleration in RSI decline could signal waning downward momentum, though it is not enough to confirm a trend reversal.
The MACD indicator shows convergence between the MACD and signal line, suggesting a slowdown in bearish momentum. The histogram’s negative value is also narrowing, implying that excessive sell pressure may be easing.
In short, a short-term rebound is possible, but there's insufficient evidence for a full-fledged bullish reversal.
In terms of asset distribution, 41.73% of Pendle’s supply is held by the foundation. About 22% of tokens are in wallets holding over 1% of supply, and around 20% are in wallets holding between 0.01% and 1%. This indicates a relatively concentrated distribution, meaning that price movements could be heavily influenced by large holders.
Active wallet counts and new wallet creation have ranged between 3,000 and 5,000 in recent months. However, both metrics declined significantly in late June, pointing to shrinking user participation and decreased on-chain activity.
Pendle (PENDLE) has carved out a unique niche in the DeFi space by enabling the trading of interest income. Its hybrid structure, combining fixed income mechanics with derivatives, makes it a standout protocol. With recent institutional rumors, rising TVL, and chain expansions, it’s once again in the spotlight.
However, from a technical standpoint, it's too early to confirm a trend reversal. On-chain metrics also show signs of user contraction, suggesting that a neutral or conservative stance may be best for now.
Should broader market sentiment and demand for on-chain yield products return, Pendle could be revalued due to its functional design and alignment with institutional use cases.
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