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PENDLE’s 108% monthly hike – Should you follow this whale and hold on?

2min Read

An average PENDLE holder can realize a 50% return on their investments. Should they though?

PENDLE price soars

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  • The exponential surge led PENDLE holders to lock in gains
  • The price rally can be linked to a surge in deposits on parent platform Pendle Finance

PENDLE, the native token of decentralized finance (DeFi) protocol Pendle Finance, has emerged as a hot commodity on account of an astronomical surge in value over the last few weeks.

Why PENDLE is in the news?

The altcoin appreciated by nearly 5o% over the week, and a whopping 108% in a month’s time, according to CoinMarketCap. Since the year began, PENDLE has jumped by more than 5x in value, boasting of a $1 billion-plus market capitalization at press time.

The uptrend led to a sharp uptick in the profitability of coin holders. In fact, according to AMBCrypto’s analysis of Santiment’s data, about 99.73% of PENDLE’s total supply was in profit at press time.

Moreover, an average PENDLE holder can realize a 50% return on their investments, as seen by the 30-day MVRV Ratio.

PENDLE profitability

Source: Santiment

Additionally, holders are already finding it hard to resist such temptations. For example – According to on-chain tracking platform Spot on Chain, a trader was seen moving a big chunk of their PENDLE holdings to cryptocurrency exchange Binance.

The investor transferred 200k tokens, worth $1.25 million at press time, on Thursday. Just four days prior to this transaction, they deposited 162k tokens, worth $919k. Both the transfers were made when PENDLE hit its peak.

Interestingly, they bought these tokens in 2022-23, when PENDLE’s price was $0.147. The whale still has 200k of PENDLE left in their wallet, suggesting expectations of further price gains.

Pendle Finance sees 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 surge in deposits on the platform, which was nearing $4 billion at press time.

Pendle Finance TVL

Source: DeFiLlama

A closer look by AMBCrypto revealed that the recent TVL boost was due to large infusion of USDe, a so-called synthetic stablecoin by Ethena Labs. The asset seemed to be offering a 37% annual percentage yield at press time, encouraging users to deposit them to Pendle and boost their income.

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Aniket Verma works as a journalist at AMBCrypto. Contrary to most who are primarily interested in merely tracking price movements of cryptos, his focus is on examining the niche intersection between cryptocurrencies and traditional finance. A so-so Bitcoin maximalist, Aniket has a strong disdain for memecoins and the unfounded frenzy they seem to generate every market season. Coming from a strong engineering background, Aniket previously worked as a Content Manager for TV9 Network. Before his stint over there, he was an Associate Multimedia News Producer at Reuters.
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