Pendle Skyrockets After Ethena (USDe) Partnership — Is a New All-Time High on the Horizon?

Jakarta, Pintu News – Pendle (PENDLE) is in the spotlight after forging a partnership with Ethena, bringing the fast-growing USDe into its yield-generating ecosystem.

The collaboration launches a profitable looping strategy, utilizing Pendle’s Principal Tokens as well as Aave’s (AAVE) loan marketplace.

With PENDLE’s price nearing its annual high, this partnership could potentially be the trigger to push it to the next level.

Pendle Partners with Ethena

Recently, Pendle announced the positive news that USDe is now officially available on HyperEVM, and since its initial launch it has received a strong response.

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The initial liquidity pool was launched with limited capacity and a market capitalization of US$100 million.

Since Pendle divides its assets into Principal Token (PT) and Yield Token (YT), the integration with USDe creates a looping strategy involving Aave. The mechanism is as follows: a user buys a PT using USDe to earn a fixed yield, and then borrows USDC against the PT at Aave.

The borrowed USDC can then be used to buy more USDe and start the cycle all over again. This strategy is profitable as the average PT yield is 8.8% higher than the cost of borrowing at Aave which is in the range of 4%-6%.

As a result, this looping strategy proved to be very profitable for both users and protocols. Aave earned 10% of the loan fees, while Pendle charged 5% for PT.

Pendle and Ethena form a beneficial relationship

Pendle and Ethena (ENA) form a highly mutually beneficial relationship, given that USDe accounts for USD 4.01 billion or approximately 60% of the total value locked (TVL) across the protocol.

To mitigate the risk, Aave DAO sets the USDe value to follow the USDT rate directly, so the liquidation risk factor can be significantly reduced.

Even so, there is still one drawback: if PT yields fall below the cost of borrowing, the profitability of this looping strategy will be lost.

The potential scale of this strategy in the future will depend on Aave’s decision to continue raising collateral caps.

Ethena itself is benefiting from a huge surge in USDe supply which is now at record highs. More than 60% of the TVL in Pendle comes from USDe and its derivatives, namely Staked USDe and eUSDe – a wrapped version of Pendle’s native sUSDe for integration in the DeFi ecosystem.

Read also: Phishing Scam Strikes Aave Just After Surpassing $60 Billion in Deposits!

PENDLE Price Analysis

Citing CCN’s report (7/8/25), PENDLE’s long-term analysis shows a bullish trend, as the token managed to break back and stay in the middle of its long-term price range.

In addition, PENDLE has also broken the resistance trendline and reconfirmed it as support (green icon).

Considering the positive signals from the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD), the chances of a rise towards the upper limit of the range at $7 look very high.

The wave count also shows a very bullish 1-2/1-2 structure (green & black), indicating that PENDLE is starting the third sub-wave of the third wave.

Since this phase is usually the most rapid part of the upward movement, it is in line with the long-term analysis and reinforces the projection of an increase towards the upper limit of the price range.

The most likely initial target for the top is at $7.80, which is equivalent to 1.61 times the first wavelength.

Overall, USDe is now the lion’s share of TVL Pendle, while the token price is moving closer to crucial resistance levels.

If it is able to break through the highs of 2025, PENDLE has the potential to rapidly accelerate towards double-digit prices.

Fundamentally and technically, Pendle is in a strong position to continue its growth and innovation.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• CCN. Pendle Pumps After USDe Collaboration – Break Over $5 Could Fuel Expansion. Accessed on August 8, 2025