Charles Edwards, founder of Capriole Investments, a crypto hedge fund, highlighted his belief that PENDLE, a token functioning in the Decentralized Finance (DeFi) sector, is currently underappreciated. In a statement on platform X, Edwards emphasized two reasons for this assessment: first, its significant Total Value Locked (TVL), and second, its relatively small market capitalization.
Edwards pointed out that PENDLE, currently an underrated altcoin, holds a massive TVL of $4.6 billion, which equates to around 5% of the entire crypto world’s TVL. Yet, its market capitalization only amounts to 14% of its TVL. Additionally, there are significant flywheel effects with Ethana, leading to ludicrous growth as depicted in the TVL chart by DefiLlama.
Arthur Hayes, the founder of BitMEX, has expressed his enthusiasm for PENDLE‘s future in the Decentralized Finance (DeFi) sector, exclaiming, “The future of DeFi belongs to PENDLE. Sailing ahead with it is a breeze.”
The future of #DEFI is $PENDLE.
Yachtzee bitches
— Arthur Hayes (@CryptoHayes) April 5, 2024
Why Is PENDLE Crypto’s Hottest Altcoin?
Starting January, there’s been an impressive 590% price jump for PENDLE. The last month witnessed an even more significant surge with a 220% price hike. As a result, it has become one of the best-performing cryptocurrencies in the wider market. This upward trend coincides with a substantial growth in Pendle’s Total Value Locked (TVL), which grew from approximately $240 million at the beginning of January to over $4.6 billion presently.
Exploring the causes behind Pendle’s remarkable growth, crypto expert 100y.eth went into great depth about X, highlighting the unique features and economic structure of the token. According to the researcher, “Pendle Finance is transforming the Decentralized Finance (DeFi) landscape by enabling the tokenization and splitting of yield-generating tokens into Principal (PT) and Yield (YT) tokens. This groundbreaking feature is the driving force behind Pendle’s widespread appeal.”
The researcher pointed out that whales continue to amass PENDLE tokens, as revealed by 100y.eth’s analysis. According to lookonchain, this behavior signifies that whales remain optimistic about PENDL’s future worth. Additionally, the researcher mentioned that large-scale withdrawals of PENDLE from exchanges serve as evidence of investors’ trust in the token.
Whales continue to accumulate $PENDLE!
Approximately three hours ago, the amount of $2.05 million in PENDLE (represented by 0xe675) was taken out from Binance. Three days prior, a withdrawal of around $2.46 million in PENDLE was processed from Binance.
Approximately 0xAa4c removed $115,500 worth of PENDLE (equivalent to around $764,000) from Binance thirty minutes ago, and $384,500 worth of PENDLE (around $2.54 million) from Binance four days ago.
— Lookonchain (@lookonchain) April 10, 2024
“The unique attraction of PENDLE comes from its vePENDLE system. When users stake or ‘lock’ their PENDLE tokens, they receive vePENDLE in return, which strengthens their involvement with the platform. This mechanism not only encourages community participation in decision-making but also increases incentives for liquidity providers.”
The holders of VePENDLE tokens significantly influence liquidity movements through their power to vote. In essence, they steer incentives towards preferred LP pools. As of April 10, the rswETH Pool held the most votes in our community’s governance process, reflecting active engagement and involvement in shaping yield dynamics.
The collaboration between recent market trends and Pendle’s groundbreaking token economics is leading to exceptional yield prospects. “The buzz surrounding LRT and Ethena is resulting in substantial returns, such as swap fees, for vePENDLE holders. Voter APYs in popular pools have jumped from 100% to an astounding 400%, demonstrating Pendle’s increasing popularity,” the researcher explained.
At press time, PENDLE traded at $7.37.
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2024-04-11 14:10