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Pendle, the protocol enabling the tokenization and trading of future yields, has surged to a new all-time high price of $4.17, making it the second largest TVL on Arbitrum after GMX. With on-chain activity and revenue fees reaching record highs, Pendle has gained significant interest in 2024, potentially positioning it to enter the top 100 cryptocurrencies by market capitalization, currently ranked at #105.
Can Pendle Enter the Top 100 Cryptocurrencies?
Pendle's impressive surge has propelled it to a record high of $4.17, making it the second-largest protocol in Arbitrum by TVL, behind GMX. With its current ranking at #105, can Pendle break into the elite top 100 cryptocurrencies?
What is Pendle and How Does It Work?
Pendle is a trailblazing protocol that enables the tokenization and trading of future yield. Its innovative time-decaying Automated Market Maker (AMM) optimizes returns and safeguards users from potential losses due to mispriced assets.
Pendle's mechanism ingeniously separates principal and yield into distinct tokens, providing users with enhanced control over their yield management. It aims to offer exposure to future yield while mitigating the risks and volatility associated with yield farming.
Pendle's Role in the Protocol
Beyond holding Principal Tokens (PT) and Yield Tokens (YT), users can earn passive returns by participating in Pendle's liquidity pools. To do so, they must lock PENDLE tokens and receive vePENDLE in exchange.
VeTokens are a novel digital asset that empowers token holders with voting rights in decentralized governance systems. They introduce a time-based component to voting, incentivizing long-term commitment and enhancing the decision-making process.
On-Chain Activity Hits New Heights
Pendle's on-chain activity has witnessed a meteoric rise since the beginning of 2024. Total Value Locked (TVL) has soared to $2.90 billion, with $2.28 billion in Ethereum and $602 million in Arbitrum. Protocol revenue has also reached an all-time high of over $620,000, surpassing February's revenue of $350,000.
PENDLE Price Prediction: Top 100 in Sight?
Technical analysis suggests that PENDLE has completed a five-wave upward movement, signaling a potential correction. However, the price has since rebounded, driven by strong momentum.
The closest resistance level lies at $4.58, followed by $6.03. With a current market capitalization of $967 million, PENDLE is ranked #105. To enter the top 100, it would need to reach a price of $4.28, given its circulating supply of 238 million.
Increased Interest Leads to PENDLE's Success
Pendle's surge in 2024 is attributed to its innovative features, such as yield tokenization and risk mitigation. This has attracted significant interest, leading to record-breaking TVL, revenue, and a new all-time high price.
As the demand for yield-generating assets continues to grow, Pendle is well-positioned to capture a significant market share and potentially enter the top 100 cryptocurrencies ranked by market capitalization.
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