TL;DR
- The PENDLE token rose 22.6% in the last session, driven by the integration of Ethena’s USDe stablecoin.
- The partnership with Ethena enables a “looping” mechanism that allows significant yield generation through Aave.
- A multisig wallet linked to Pendle transferred 900,000 tokens ($4.65 million) to Binance, coinciding with the price surge.
PENDLE token experiences a strong bullish momentum following the integration of Ethena’s USDe stablecoin into its platform.
Its value increased more than 49% over the past month, with a 22.6% rise in the last session alone. This rally led analysts to project a possible return to the all-time high of $7.50 and set an initial target at $7.80, with potential to reach double-digit prices if current conditions hold. It currently trades at $5.37 per unit.
The Looping Behind Pendle’s Success
The partnership with Ethena allows the implementation of a “looping” mechanism combining fixed yields and controlled leverage. Pendle splits assets into Principal Tokens (PT), which guarantee interest, and Yield Tokens (YT), which capture yield fluctuations.
With USDe integrated, users can acquire PT and use them as collateral on Aave to borrow USDC. They then use that capital to buy more USDe and repeat the cycle. The difference between PT yields and borrowing costs—currently between 4% and 6% on Aave—is about 8.8%, making the strategy profitable.
900,000 Tokens Transferred to Binance
USDe’s presence in Pendle is significant: $4.3 billion locked, representing 60% of the stablecoin’s total supply, and $3 billion deposited on Aave. Additionally, the USDe market accounts for 60% of the protocol’s total value locked. To reduce liquidation risks, Aave DAO pegged USDe’s value to USDT. Further growth depends partly on Aave raising its collateral limits, which would enable greater participation in the looping cycle.
Meanwhile, on-chain tracking revealed a multisig wallet linked to Pendle transferred 900,000 tokens valued at $4.65 million to Binance. Although the team has not disclosed the reason, market speculation points to liquidity provision, market-making activities, or preparation for new initiatives. Following the transfer, the token’s price surged.
From a technical standpoint, PENDLE broke a key resistance level, which it has now turned into support, with indicators like RSI and MACD remaining positive. Critical support sits at $5.23, while surpassing $5.53 would open the path to $5.77 and $6.30. Wave patterns indicate a third sub-wave is underway, with potential to break the 2025 high and reach new records. The combination of solid fundamentals, strong liquidity, and favorable technical signals supports the outlook for further gains
