(Tuesday-02 July 2024, 09:33 AM IST):
n the cryptocurrency market today, Pendle Protocol, known for its permissionless yield-trading capabilities, is facing a downturn in its native token, PENDLE. Over the past 10 days, PENDLE has dropped from $6.28 to $4.97, a decline of more than 20%.
As reported by Odaily, Pendle has seen nearly $3 billion in withdrawals since last Wednesday, primarily due to the expiration of several market products. Most of these withdrawals involved liquidity re-pledged tokens. By Tuesday, the total value of user deposits had fallen to $3.7 billion, marking a 40% decrease in Pendle’s total locked-in value (TVL) over the past week.
Ian Unsworth, the founder of Kairos Research, explained that these fund outflows were mainly due to the expiration of specific products. Products related to ether.fi’s eETH, Renzo’s ezETH, Puffer’s pufETH, Kelp’s rsETH, and Swell’s rswETH on the Pendle market expired on June 27, leading to significant fund withdrawals.
The impact of these withdrawals also affected a related protocol, Zircuit, which experienced a 15% decrease in deposit value within a week.
Pendle Protocol’s recent challenges highlight the volatility and risks associated with the cryptocurrency market, particularly when tied to expiring financial products.
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