Pendle is a decentralized finance (DeFi) protocol designed to allow users to buy and sell future interest income as a tradable asset today. Unlike the traditional model in which users simply deposit funds and wait to earn interest, Pendle enables the separation of principal and yield and allows users to trade these yields separately, thereby building a structure similar to a derivatives market.
The project was initiated by Tectonic Labs in 2021. In the early stages of development, team members came from platforms such as Balancer and Venture DAO, with a solid technical foundation. Especially since the second half of 2023, institutional capital began to flow in, and market attention has increased significantly.
Pendle's core mechanism is the 'yield separation token structure'. For example, when a user deposits Ethereum into a DeFi service through Pendle, the asset is split into two types of tokens:
PT (Principal Token): Represents the original principal and can be redeemed upon maturity;
YT (Yield Token): Represents future interest and can be freely traded in the market.
This system allows users to cash in future yields in advance, or to operate in reverse, speculatively buying YT tokens in anticipation of rising yields. Therefore, the Pendle ecosystem supports hedging, enhanced yield investment, and liquidity provision based on interest rate fluctuations.
As the DeFi market moves from a trough to a structural reorganization, interest in institutional-grade yield products is gradually rising, and Pendle fits this demand well, demonstrating the real-world application prospects of interest rate-based structured products.
Combining EigenLayer's re-staking mechanism and Ethena's USDe and other functions, Pendle is achieving integration in multiple community-driven projects. As of June 2025, Pendle's TVL (Total Value Locked) exceeded $8 billion, setting a historical high. Not only on the Ethereum mainnet, but also on extended chains like Arbitrum and Blast, liquidity is growing rapidly.
In addition, the recent tracking of a fund wallet associated with BlackRock holding Pendle's YT tokens has further intensified market speculation about institutional participation.
In terms of technical aspects, the RSI is currently 42.01, not yet in the oversold range, but close to the bottom support level. The slowdown in the RSI's decline may mean that the downward momentum is weakening, although it is not enough to confirm a trend reversal.
The MACD indicator shows a trend of gradual convergence between the MACD line and the signal line, suggesting that the bearish momentum is weakening. The negative value of the histogram is also shrinking, indicating that excessive selling pressure may be easing.
In short, there is a possibility of a rebound in the short term, but there is not enough evidence to confirm a comprehensive upward trend.
From the perspective of token distribution, the foundation holds 41.73% of the total supply of Pendle. Approximately 22% of the tokens are concentrated in wallets holding more than 1%, and about 20% of the tokens are distributed in wallets holding 0.01%-1%. This indicates a relatively concentrated distribution, and price fluctuations may be significantly affected by large holders.
In recent months, the number of active wallets and the number of new wallets created have remained between 3,000 and 5,000, but both have declined significantly at the end of June, showing a decrease in user participation and on-chain activity.
Pendle (PENDLE) has opened up a unique track in the DeFi field by allowing the trading of yield income. Its hybrid mechanism combining fixed income logic and derivative structure makes it a highly representative protocol. With institutional rumors, rising TVL and multi-chain expansion, it has once again come into public view.
But from a technical point of view, it is currently difficult to confirm a trend reversal. On-chain indicators also show signs of declining user activity, so taking a neutral or conservative position may be a more reasonable choice at present.
If the overall market sentiment warms up in the future and the demand for on-chain yield products increases, Pendle is expected to be revalued again due to its practical design and institutional direction.
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