Pendle has emerged as a pioneering force in the decentralized finance (DeFi) space, redefining how users interact with yield-bearing assets. With its innovative approach to yield trading, Pendle enables users to tokenize and trade future income streams from staking, lending, and other interest-generating protocols. As of now, Pendle is ranked #76 by market capitalization, with a real-time price of $3.3580** and a market cap of **$554 million.
The circulating supply stands at 164,633,048 PENDLE, representing 58.47% of the total max supply of 281,527,448 PENDLE. The project has undergone multiple security audits, including a comprehensive review by CertiK on September 26, 2022 (UTC+8), reinforcing its commitment to protocol safety.
Understanding Pendle’s Core Mechanism
At its foundation, Pendle splits yield-generating assets into two distinct components: Principal Tokens (PT) and Yield Tokens (YT). This separation allows users to:
- Lock in fixed yields by purchasing PTs at a discount
- Speculate on rising yields by acquiring YTs
- Provide liquidity to earn additional rewards via LP farming
This model brings financial engineering concepts from traditional markets into DeFi, offering more predictable income strategies and hedging tools for volatile yield environments.
For example, if you hold staked ETH (e.g., rETH or wstETH), Pendle lets you sell the future yield stream (as a YT) while retaining exposure to the underlying asset’s price movement through the PT. This flexibility appeals to both conservative yield-seekers and aggressive yield farmers.
Market Performance & Historical Trends
PENDLE reached its all-time high of $7.1420** on December 7, 2024 — a significant milestone reflecting strong adoption during the broader DeFi resurgence. Since then, the price has corrected by **-52.99%**, currently trading around **$3.3580.
Conversely, the all-time low of $1.8130 was recorded on March 11, 2025, followed by a rebound of +85.21%, signaling growing investor confidence despite macro volatility.
| Metric | Value |
|---|---|
| Current Price | $3.3580 |
| 24h Change | -3.51% |
| Market Cap | $554M |
| Circulating Supply | 164.6M PENDLE |
| Max Supply | 281.5M PENDLE |
Note: All prices and metrics are updated in real time based on global exchange data.
Integration with Emerging Protocols: Infrared & Berachain
One of the most notable recent developments is Pendle’s integration with Infrared, a leading protocol on the Berachain ecosystem. Infrared launched a new iBGT market on Pendle, set to expire on September 25.
Users can now:
- Buy YT-iBGT to gain leveraged exposure to rising iBGT yields
- Purchase PT-iBGT to lock in current yields at a discount, protecting against future declines
- Provide LP tokens to earn an impressive ~250% APY in HONEY, WBERA, iBGT, Pendle rewards, and double Infrared points
Infrared has completed 10 full security audits, including reviews by Zellic and Spearbit, ensuring robustness as it prepares for Q3 TGE. Its position as the largest protocol on Berachain highlights Pendle’s role in enabling next-generation yield infrastructure across emerging L1s.
👉 See how top-tier protocols are leveraging yield segmentation for maximum capital efficiency.
Institutional Adoption & Sustainable Revenue Growth
According to recent data from Caladan Weekly, Pendle demonstrates exceptional resilience in institutional capital retention — maintaining 99.2% of deposited capital over 120 days, outperforming even BlackRock’s BUIDL token (97.9%).
This stability stems from Pendle’s organic revenue growth model:
- 100% increase in fee revenue over 120 days
- Strong alignment between TVL and actual protocol income
- Decline in reliance on synthetic or subsidized yields
In contrast, many high-TVL protocols like Veda Labs and Sparkdotfi show minimal revenue generation despite billions in locked value — indicating potential overvaluation.
Pendle’s ability to attract and retain institutional-grade capital underscores its long-term viability in a maturing DeFi landscape.
Community Insights: Airdrops, Leverage & Regulatory Questions
User sentiment remains bullish, with community members reporting substantial returns from participation. One user noted earning 3,500 USDC from Pendle’s May airdrop and governance incentives — equivalent to a 3% annualized return, which they described as “pretty sweet.”
However, questions remain about regulatory impacts such as the proposed GENIUS Act, which would allow compliant banks to issue regulated stablecoins backed 1:1 but prohibits them from paying interest directly.
Key unresolved questions include:
- Can users still earn yield on these stablecoins via DeFi platforms?
- Who bears responsibility if a non-compliant DeFi platform fails?
While regulatory clarity could unlock institutional inflows into DeFi, the lack of compliance frameworks means users currently bear full risk.
Yala Project & Cross-Chain Yield Synergies
Another emerging trend involves projects like Yala, which aims to bring Bitcoin’s liquidity into DeFi through meta-yield stablecoins like $YU. Though not directly integrated with Pendle yet, synergies exist:
- Yala encourages content creation ("Yapping") for reward distribution
- Potential for future YT strategies involving $YU yield streams
- Mainnet launched in May 2024, with TGE expected around August–September
Some users are already exploring multi-collateral deposits or using Pendle’s YT instruments to maximize exposure ahead of anticipated launches — though concerns about timing suggest some may have missed optimal entry points.
Frequently Asked Questions (FAQ)
What is Pendle used for?
Pendle allows users to tokenize and trade future yield from assets like staked ETH, liquid staking tokens, or money market deposits. It enables fixed-income strategies, yield speculation, and enhanced capital efficiency in DeFi.
Is PENDLE a good investment?
PENDLE has shown strong fundamentals with rising organic fees and high capital retention. While price performance depends on broader market conditions, its structural role in yield markets makes it a compelling long-term holding for DeFi investors.
How does Pendle generate revenue?
Pendle earns fees from swaps between Principal and Yield Tokens, as well as from liquidity pools. These revenues have grown organically by 100% over the past four months, signaling strong product-market fit.
Can I earn passive income with Pendle?
Yes. Users can earn yield by:
- Providing liquidity to PT/YT pools
- Buying discounted PTs to receive full principal at maturity
- Holding YTs if underlying yields rise
What blockchains support Pendle?
Pendle operates across multiple chains including Ethereum, Arbitrum, Optimism, Base, and Berachain — expanding access to diverse yield sources and lowering transaction costs.
How secure is the Pendle protocol?
Audited by top firms like CertiK and integrated with battle-tested systems like Infrared (with 10+ audits), Pendle prioritizes security. However, users should always assess smart contract risks and avoid over-leveraged positions.
Final Thoughts: The Future of Structured Yield
As DeFi evolves beyond simple lending and borrowing, protocols like Pendle are leading the charge in creating sophisticated financial instruments accessible to all. By enabling fixed-rate returns, yield speculation, and capital-efficient leverage, Pendle bridges the gap between traditional finance and decentralized innovation.
With growing integrations across ecosystems like Berachain and rising institutional interest, Pendle is well-positioned to become a core pillar of the next-generation DeFi stack.
All information provided is for educational and informational purposes only and should not be construed as financial advice. Always conduct your own research before making investment decisions.