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Pendle Achieves $1 Billion in TVL — Is PENDLE Poised for More Growth?

Last Updated February 9, 2024 2:41 PM
Nikola Lazic
Last Updated February 9, 2024 2:41 PM

Key Takeaways

  • Pendle’s TVL hits $1 billion, signaling strong growth since 2024 start.
  • PENDLE’s price reached all-time high and staking interest surged.
  • There is a potential for the first major correction despite ongoing bullish trend.

Pendle, a decentralized finance (DeFi) platform offering returns through tradable digital tokens, has achieved a milestone of $1 billion in Total Value Locked (TVL). Pendle’s TVL has soared to $1.012 billion. From a starting point of $233 million on January 1, 2024, the platform’s TVL nearly tripled to $611 million by the start of February, and there was then a sharp increase in the first ten days of the month.

Pendle's TVL
TVL surged, reaching $1b. Source

Meanwhile, the price of the PENDLE token reached an all-time high as well, coming slightly above $3 on February 6. With this high interest, indicated by the participation in staking, is PENDLE ready to continue its upward trajectory?

Pendle Grabbing Market’s Attention 

This surge in interest is primarily attributed to Pendle’s role in Liquid Restaking Token Finance (LRTFi). This is a niche within DeFi that enhances the liquidity of staked assets via liquid restaking tokens (LRTs). These tokens allow users to earn rewards while their original assets remain locked, supporting network services.

The growth momentum for Pendle began in the summer of 2023, after the integration of PENDLE into Binance’s “innovation zone” and the introduction of a product based on real-world assets (RWA). 

This product, combining MakerDAO and Flux Finance elements, offers returns from traditional financial sectors alongside the usual DeFi earnings, propelling Pendle’s TVL and token value. 

 

PENDLE Price Analysis 

Pendle embarked on a bullish trend in June 2022, bottoming at $0.036. It experienced a slight increase to $0.07 before dipping back down to retest the low in November of that year. This set the stage for a more substantial upward movement. 

PENDLE at the all-time high.
PENDLE could be in its ending wave.

By June 2023, Pendle hit the $1 mark, and following a correction to around $0.50 in August, it started climbing. As of January 31, Pendle’s price has achieved its highest level since shortly after its debut and it continues to go up.

This ascent is the final phase of a five-wave bullish pattern that began in June 2022, but there is potential for further growth. The price may make another surge towards the resistance level, which remains a moving target. 

Ultimately, Pendle could reach as high as $7 in the future, but first, we need to see if strength remains among buyers. The daily chart Relative Strength Index (RSI) is sitting just below the overbought zone of 70%. Nevertheless, that doesn’t mean it can’t continue moving higher. 

However, what comes up must come down, especially in the crypto market. The stronger something climbs, the more it falls. Considering that we’ve seen an uptrend since June 2022, PENDLE is ready for its first significant correction. 

Even though there aren’t any obvious signs of weakness, the ascending channel on the four-hour chart hints at them.

4-hour chart
Ascending channel’s breakout could signal a larger trend.

The price is already putting pressure on its support level and, since we saw this ascending channel developing from January 16, it may be time for a breakout to the downside. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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