Pendle Rallies 21% in a Day After Bullish Ethena Collaboration

• PENDLE surged over 21% in 24 hours, topping the gainer list following a bullish partnership with Ethena.
• Ethena USDe Yield Loop integration drove $4.3B into Pendle, boosting demand and institutional interest.

PENDLE is back in the spotlight after surging 21.4%in the past 24 hours, far outperforming Bitcoin, which only gained 1.9%, and Ethereum, which gained 6.7%.

This increase places PENDLE at the top of the list of top gainers today, a strong signal that market interest in this protocol will not wane anytime soon.

Yield Loop Strategy Fuels PENDLEs Liquidity Inflow

One of the driving forces behind this surge is the Ethena USDe Yield Loop strategy, which has proven to attract significant liquidity.

Through a collaboration with Ethena, Pendle integrates USDe and allows users to lock in a fixed yield through Principal Tokens (PT), then borrow against that PT on Aave to double their yield. This strategy has already attracted $4.3 billion—approximately 60% of the total USDe supply—into the Pendle ecosystem.

The new degen loop for $ENA x $PENDLE x $AAVE:

1. Use USDe on Pendle to get PT for a zero-coupon bond w yield + low vol

2. Use that as collateral on Aave to borrow more USDC

3. Use USDC to get more USDe, start from step 1

Exogenous: USDC yield goes up, AAVE TVL moons again

— Lai Yuen (Former .eth) (@0xlaiyuen) August 7, 2025

With a yield of around 8.8% above the borrowing fee, plus the protocol charging a 5% fee on the PT, demand for PENDLE has been boosted. Moreover, Aave increased collateral limits and kept USDes peg to USDT stable, reducing the risk of liquidation, a frequent threat in leveraged strategies.

On the other hand, there were also notable major wallet movements. Pendles multisig wallet sent 900,000 PENDLE worth $4.65 million to Binance after the price surge. However, this wallet still holds $135 million worth of PENDLE, indicating long-term confidence. Technically, PENDLE has broken through the $5.25 resistance that previously acted as a barrier in July and is now testing it again as support.

The Relative Strength Index (RSI) indicator is at 68.55, not yet in overbought territory, while the MACD histogram has turned positive. Currently, the price is testing the upper boundary of the ascending channel in the $5.70–$6.00 range, and if it can hold above $5.30, the next target could potentially be the 2025 high around $7.50.

Source: TradingView

From RWA Tokenization to Boros: Expanding the Yield Frontier

Pendle isnt just playing in the traditional DeFi yield space. Since the beginning of the year, its TVL has surged from $230 million to $5.2 billion, thanks to its position in RWA tokenization and fixed-yield products.

Furthermore, its collaboration with Converge Blockchain opens the door for traditional financial institutions seeking regulated yield solutions, and they are now building Citadels for more secure yield access for institutions.

Looking back, last March, CNF reported that Pendle achieved $58 million in TVL on Sonic just a month after launch, through a flexible yield strategy that supports staking, stablecoins, and even BTC and ETH assets.

Recently, Pendle also launched Boros on Arbitrum, a platform that enables arbitrage and hedging against funding rates between exchanges, starting with the BTC and ETH markets through Yield Units (YU) contracts.

Each YU represents the yield on one unit of an asset as collateral, similar to the YT mechanism, and provides hedging opportunities for institutions and DeFi users against funding risk. Boros is even designed to support the entire Pendle yield ecosystem, encompassing DeFi, TradFi, bonds, and RWA.

Strikingly, last June, a wallet associated with Arca accumulated 2.18 million PENDLE worth $8.3 million in six days at an average price of around $3.81 per token.