Pendle Price Today

The current real-time Pendle price is $4.42 . PENDLE price has grew by 0.03% in the last day and increased by 25.75% in the last seven days. It’s important to note that the current Pendle market capitalization is $686,597,089. The maximum supply is coins, with a circulating supply of 155,487,062.98. PENDLE is ranked #98 in terms of market cap.

The Basics of Pendle

Pendle (PENDLE) is a unique cryptocurrency protocol based in the Decentralized Finance (DeFi) space. It introduces a new concept into the cryptocurrency space, separating the future yield of crypto from the underlying asset. Using this innovative technology, Pendle aims to introduce a range of new financial products into the crypto space. 

The core premise of Pendle allows traders to speculate on DeFi yield-bearing products. People can sell their future yield or speculate whether it will increase, leading to a greater valuation. Pendle’s technology will lead to a new wave of DeFi products and give users greater control over their yield-generating assets and personal risk tolerance. 

Initially dubbed Benchmark, Pendle was co-founded by Vu Nguyen, TN Lee, GT, and YK. While crypto enthusiasts were first introduced to Pendle in 2020, the project officially went live in June 2021. Since its release, Pendle has carved out a space for itself in the DeFi industry and is poised to improve investor control in the sector. 

How Pendle Works – Explained

Pendle comprises a DeFi website that enables users to pledge tokens in liquidity pools to earn yield or divide their assets into Pendle yield-bearing tokens. Initially deployed on the Ethereum network, Pendle now operates on the Arbitrum, Optimism, and BNB Chain networks, vastly increasing accessibility and bringing new DeFi opportunities to several networks.

The Pendle ecosystem can be confusing as it comprises several proprietary tokens. Standardized Yield (SY) tokens are created by Pendle wrapping regular yield-bearing tokens (for example, AAVE). The SY token is then divided into two components: a Principal Token (PT) representing the underlying asset and a Yield Token (YT) representing the future yield of the asset. 

Another token also plays an important role in the Pendle ecosystem. People interested in the project can attain vePENDLE by locking PENDLE. The vePENDLE token grants holders the ability to vote in the project’s governance system, giving users a say in the future direction of Pendle and any proposals affecting it. 

Pendle has built and operates an Automated Market Maker (AMM) system for trading its proprietary PT and YT tokens. An AMM functions similarly to a crypto exchange, but instead of pairing buyers and sellers, people interact with a liquidity pool containing crypto tokens, and prices are determined by a mathematical formula instead of an order book.

The Utility of Pendle

Pendle allows users to speculate on the future yield of yield-bearing assets by taking short or long positions tied to whether the asset will increase or decrease its yield in the future. 

Yield tokens are available on Pendle’s AMM and allow users to purchase solely the yield component of an asset. For example, you could buy 1 YT ETH for 0.04 ETH and would have no exposure to the underlying asset but earn the yield equivalent to owning 1 ETH. As such, people who think yield will increase can purchase a YT token and profit if its yield pays out more than its cost within one year, 

Principal tokens allow users to purchase an asset for a discount as it has the yield component removed. As a principal token has the yield component removed, it will be cheaper than the asset it represents. For example, you could buy 1 PT USDT for 0.9 USDT. However, after waiting one year for the PT token to mature, you can redeem it for 1 USDT, providing a fixed interest rate of 11%. 

Pendle Price History

Upon its May 2021 launch, PENDLE was trading for around $1.08 but quickly shot up to $2.2195 within a month following investor intrigue in Pendle’s system. However, as the bull market subsided, PENDLE crumbled, falling to $0.3347 by August. 

Over the next few months, PENDLE collapsed under the weight of the bear market. Moreover, the project was still small, making it more susceptible to movements. PENDLE fell as low as $0.03973 in 2022, representing a 96% decline since launch. 

PENDLE grew throughout 2023, going into 2024 at around $1.20. However, as the crypto market recovered, PENDLE catapulted upward, hitting an all-time high of $6.90 in May. Today, the asset has retraced slightly and trades for $4.42 .