For the reason that origin of the year, PENDLE has surged by 502% to contemporary all-time highs.
This is indicative of its mammoth growth amidst an rising protocol process.
What Is Driving PENDLE’s Growth?
Pendle Finance, an Ethereum-based yield trading protocol, employs a special technique to yield farming by dividing assets into Necessary Tokens and Yield Tokens. This framework enables customers to alternate tokens whereas earning yields as excessive as 47% on the underlying assets.
No matter its inception in 2021, Pendle has no longer too long ago witnessed a surge in adoption. This uptick will probably be attributed to heightened Ethereum liquid restaking process and airdrops from DeFi protocols admire Ether.Fi.
Many customers had been depositing their Ether.Fi restaking token, eETH, on Pendle Finance in anticipation of an upcoming airdrop from EigenLayer, but any other restaking protocol. This is because restakers receive facets from EigenLayer.
Read more: Ethereum Restaking: What Is It And How Does It Work?
On the other hand, the contemporary spike in Pendle’s process will probably be primarily attributed to elevating the cap for its Ethena’s USDe pool to 400 million. This rising protocol process has propelled Pendle’s full fee locked (TVL) to surpass $4 billion.
This marks a staggering construct better of over 1,500% since the origin of the year when Pendle’s TVL stood at a modest $233 million. The platform’s full trading quantity has soared to $10.5 billion. Notably, these form of trading actions happen on Ethereum, however the mission is gaining traction on Layer-2 networks admire Arbitrum and Mantle.
Read more: Which Are the Simplest Altcoins To Make investments in April 2024?
Pendle’s exponential growth has cemented its region as the ideal DeFi yield protocol. This valuable upward push brought on BitMEX’s co-founder Arthur Hayes to uncover the platform as “the system forward for DeFi.”
