The DeFi ecosystem is rapidly evolving. Pendle is catching the industry’s attention as a promising new protocol to revolutionize the way we trade yield. Here at FearlessToken.com, we’re exploring Pendle’s possible future path in 2025. We’ll explore its growth on Solana, its bridging efforts with traditional finance, and how permissionless listings cause a ripple effect. Let’s unpack what this might mean for the venue and its audience.

Pendle's Projected Growth: A Look at the Numbers

According to analysts, Pendle (PENDLE) will reach a high price of $3.90 and a low of $3.82 in 2025, with an average price of $3.86. Though more speculation than certainty, these projections indicate an ROI of 2.57% above today’s rates. Monthly price changes might lead the asset to move between $5.50 and upwards of $6.00. Some estimates even predict it could go even higher in 2025, but those projections are not yet finalized.

What's driving these projections? Pendle’s move to Solana is one of the biggest factors. Solana’s high throughput and low transaction costs would be highly beneficial to attracting new users and liquidity onto the Pendle platform. The decentralized platform is riding the wave of hugely popular yield-bearing stablecoins. Pendle works with and seamlessly incorporates multiple circulating yield-earning yield-bearing stablecoins. That powerful competency has it well poised to take a large chunk of the growing market’s share. In fact, they are now accounting for 30% of all yield-bearing stablecoin supply.

Pendle is an example that constantly adds new stablecoin issuers like Binance USD. Excluding Ethena/Sky, they are besting one-fifth of all issuers and 40-50% of Ethena USDe. Pendle needs diversification. As the broader market has continued to expand, their total value locked (TVL) mix is beginning to diversify away from extreme dependency on Ethena USDe at 99% of their TVL, to a more balanced ~70%.

Bridging TradFi and DeFi: The Ethena and Converge Connection

Also closely watched will be the partnership between Ethena Labs and Securitize to launch Converge, a new, private-facing blockchain network. Converge wants to serve as a decentralized settlement layer for traditional and decentralized finance (TradFi and DeFi). This program is intended to bring retail investors access to off-the-shelf DeFi applications. It will bring together important blockchain infrastructure players like LayerZero, Pyth Network, Wormhole, and RedStone.

With its expertise in issuing ~ $2 billion worth of on-chain securities, Securitize, will be a key component to Converge. This new partnership deepens their already collaborative relationship. Ethena joined with Securitize to launch USDtb, a stablecoin collateralized by Blackrock’s BUIDL. Pendle’s ability to fit into such initiatives would only provide even more oxygen to its growth — something it remains poised to do.

This move taps into a broader trend: the increasing demand for yield-bearing stablecoins. According to Citi, the market for stablecoins will surpass $1.6T by 2030. Unless Pendle significantly adjusts its current strategy to try and capture at least 15% of the stablecoin market.

Risks and Opportunities: A Balanced View

As with any investment, there are risks and opportunities associated with Pendle.

Pendle has demonstrated a true talent for pivoting with the evolving DeFi ecosystem. This project fits right in with all of the emerging new projects and protocols. Its continued efforts to grow its ecosystem certainly make it one to keep a close eye on. For anyone seeking promising new projects in the crypto world, Pendle is definitely one to consider.

  • Market Volatility: Pendle's price has shown significant fluctuations, and this volatility could continue to impact its future performance.
  • Dependence on Token Incentives: While Pendle has maintained stable revenue and increased utility, its long-term success may still be influenced by token incentives.
  • Competition: The DeFi space is competitive, and other protocols may offer similar or better services.
  • Regulatory Risks: Regulatory changes or uncertainties could impact Pendle's operations.
  • Adoption and Demand: Pendle's success depends on the adoption of its protocol and the demand for its services.

Potential Opportunities:

  • Rapid Growth of Yield-Bearing Stablecoins: The market for yield-bearing stablecoins is expected to grow, and Pendle is well-positioned to capture a significant share.
  • Expanding Market Share: Pendle currently captures 30% of all yield-bearing stablecoin supply, and believes this share will expand to 15% as a secular tailwind.
  • Increased TVL from New Issuers: Pendle has been consistently layering new cohorts of stablecoin issuers, capturing >20% of all the issuers excluding Ethena/Sky, and 40-50% of Ethena USDe.
  • Diversification away from Ethena USDe: Pendle's TVL mix has diversified from 99% to ~70% as the overall addressable market continues to explode.

Pendle has shown a real knack for adapting to the changing DeFi landscape. Its ability to integrate with new projects and protocols, as well as its focus on expanding its ecosystem, makes it a project to watch closely. For those looking for new opportunities in the crypto space, Pendle may be worth a look.