Pendle DeFi Faces TVL Drop, New Catalysts on the Horizon

• Pendle DeFi TVL dropped 42% as retaking pools matured, leading to lower yields and ETH displacement.
• Upcoming catalysts like the ETH ETF and Pendle v3 aim to increase Pendle’s TVL and market position.

Pendle DeFi’s total value locked (TVL) has collapsed Pendle’s TVL was estimated at $6.18 billion as of June 27, but has since fallen 42% to $3.6 billion. This article explores the causes of this notable decline, to be published soon Pendulum catalysts and the still unexploited possibilities of the protocol.

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TVL Crash: What Happened?

Pendle’s TVL drop is primarily a result of some liquid retaking market pools maturing on June 27. Many players left the point farming game at this point due to their disapproval of the upcoming LRT airdrop.

As a result, the reported yield for the main tokens (PT) has dropped as demand for yield tokens has decreased; today, it is around 6%. PT assets have become less attractive due to this drop in yield, leading some users to transfer their ETH to other protocols.

Pendle has good signals in front Despite the decline, it is interesting to note that the MCAP/TVL ratio is still viewed by the market as a key valuation tool. Pendle’s TVL ratio will likely rise in line with any future increases in its price. Several upcoming factors are poised to revive Pendle’s chances.

First, the expected ETH ETF may spark new curiosity. Pendle v3, which will bring leveraged yield trading, also seems to be a game changer when it launches. Additionally, the Symbiotic + Mellow protocol story is evolving and could provide the platform with even more new ideas.

Potential and market positioning

Pendulum stays The DeFi protocol ranks #9 in terms of TVL, despite recent struggles. Its market cap (MCAP), however, places it below the Top 100 and highlights the protocol’s unrealized opportunities.

This disparity between TVL and MCAP highlights the potential for development, especially if future catalysts effectively increase user engagement and TVL expansion.

Meanwhile, Pendle’s native token, PENDLE, is valued at around $4.06 right now. The coin has demonstrated a downtrend over the past seven days, with a 23.97% down, but in the last 24 hours it has increased by 1.28%.

While this decline reflects both the recent collapse in TVL and the broader market sentiment, it also sets the stage for a potential rebound when new events unfold.

Adding a layer of hope are major players in the crypto scene, such as Arthur Hayesexpressed positive views on Pendle. Hayes’ optimism, which CNF had previously reported, extends to Pendle and Dogecoin (DOGE), suggesting that Pendle still has hope for the future despite the current market challenges.

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