PENDLE (Pendle) 24h Up 10.83%

Gate News Bot Message, January 22nd, according to CoinMarketCap data, as of press time, PENDLE (Pendle) is trading at $2.12, up 10.83% in the past 24 hours, with a high of $2.15 and a low of $1.85. The 24-hour trading volume reached $125 million. The current market cap is approximately $359 million, an increase of $35.1 million from yesterday.

Important recent news about PENDLE:

1️⃣ Major upgrade to the token economic model drives price rebound
Pendle officially launched the sPENDLE mechanism on January 20th, fully replacing vePENDLE. This significant change has become the core driver of recent price increases. The new mechanism introduces a liquidity staking design, reducing the exit period from the previous long-term lock-up to 14 days, and supports paying a 5% fee for instant redemption, significantly lowering the participation threshold for users. Meanwhile, the protocol income distribution mechanism has also been optimized, with up to 80% of protocol revenue used for PENDLE buybacks and distributed to active sPENDLE holders, creating a more direct value transfer mechanism. These reforms address long-standing issues of liquidity shortage and interoperability limitations with vePENDLE, enhancing the token’s composability within the DeFi ecosystem.

2️⃣ Inflation reduction expectations support valuation recovery
The new sPENDLE system upgrades the previous manual voting emission mechanism to an algorithmic issuance model,预计 reducing PENDLE emissions by 20-30%. This significantly improves the token’s long-term scarcity, providing fundamental support for valuation recovery. Coupled with the protocol generating over $37 million in revenue by 2025 and an ecosystem with nearly $3.5 billion in total value locked, the reduced inflation makes the long-term yield commitments of PENDLE more convincing.

3️⃣ Growing demand base driven by increased ecosystem activity
Within 24 hours of the release of the ICO and Stabledrop announcements, the APR on Pendle increased by approximately 30%, and the supply of cUSD increased by about $30 million. This indicates that Pendle’s ecosystem as a yield trading platform is becoming more attractive, with new projects driving up trading volume and demand. Additionally, Pendle’s derivatives market shows positive signals, with open interest rising nearly 10% to $45 million, indicating traders are building new positions rather than reducing them, reflecting improved market expectations for future trends.

From a technical perspective, PENDLE has formed support above $2, with Bollinger Bands continuously narrowing, indicating volatility compression, and RSI in the neutral zone. The market is focusing on the key resistance level of $2.30-$2.35; a successful breakout of this range could further push the price toward $2.60.

This message is not investment advice; please be aware of market volatility risks.