Yesterday, Binance announced the listing of Pendle Finance PENDLE crypto token in its Innovation Zone.
The exchange’s Innovation Zone is nothing more than the program of launching new token or cryptocurrency exchange pairs.
In fact, it sometimes happens that if such pairs turn out to be underutilized they are then removed.
Summary
Pendle Finance’s crypto roller coaster debut
According to data from CoinMarketCap, which is owned by Binance itself, the debut on Binance has not been particularly good.
It is worth mentioning that PENDLE actually existed on the crypto markets as far back as May 2021, but only since yesterday has it landed on Binance as well.
Focusing only on the price movements yesterday and today after listing on Binance, it can be said that it looks like it is on a roller coaster.
In the first five minutes of trading on Binance the price jumped from less than $0.8 to almost $1.3, with an almost immediate gain of 62%. But already within the next 15 minutes it had fallen to $1, then back down to $0.8 later in the day.
In other words, it had a very fast initial boom, like some kind of mini-bubble that swelled in record time and then exploded in the following hours.
Performance over time
Going back in time it turns out that overall things are not going very well.
It is worth mentioning that the debut in the crypto markets took place at the height of the speculative bubble, in May 2021, so it is almost obvious that the price subsequently fell.
However as of today it loses 77% from the absolute highs of November 2021, and 54 % from the initial price.
This is significantly worse performance than that of, for example, Bitcoin, but significantly better than that of many other cryptocurrencies.
For example Solana’s SOL is at -93% from the highs, and at -61% since May 2021, even though it is well above the initial price. However, more stable cryptocurrencies such as Binance Coin are performing better, as BNB is “only” at -65% from the highs.
On top of that, PENDLE’s 2022 has been terrible, with a collapse all the way below $0.04 in November that had taken it as low as -98% from the highs.
However, so far 2023 has been a very good year for the market performance of this token, excluding 2021. In fact to date the price has risen 1,900% from the lows of late 2022.
It is therefore a very speculative token, the price of which is able to move a lot and also very quickly, influenced for example by news.
The Pendle Finance project
Pendle Finance is a protocol that enables tokenization and trading of future returns.
It has created a new AMM that supports assets with time decay, so it gives users more control over future returns.
It effectively splits yield from interest-bearing assets in an effort to offer better prices than exchanges. It also allows hedging of its yield exposures.
It is therefore a project related to decentralized finance with its own token that enables farming.
In fact, its is a yield trading protocol that allows users to choose between fixed or flexible yields.
Pendle Finance’s 2023 crypto boom
The boom in PENDLE’s price in 2023 is not only due to a post-bearmarket rebound, but also to a sharp increase in TVL.
In fact, on Pendle’s DeFi protocol, the TVL in the past twelve months has increased from less than $4 million to over $128 million. The biggest surge there has been since the second half of March, although growth had begun as early as late 2022.
Right now it is in fact at an all-time high as far as TVL is concerned, and all because of the high returns it offers for now.
It is enough to mention that some of the possible strategies offer annual returns of up to 82% on ETH, and have an expiration period that ends in late 2023 or early 2024.
It also allows ETH to be purchased at a 5.88% discount as of Thursday, although ETH purchased in this way can only be claimed on 26 December 2024.
According to some, there is even the possibility of yields in excess of 400%.
The problem of massive sales
Yesterday, there were also massive sell-offs after the first five minutes of madness on Binance.
Indeed, even before the opening of the listing it appeared that three whales had deposited 5.6 million PENDLE tokens on Binance in the last 2 hours (about $6.5 million), and it was feared that they might sell shortly after trading began.
Indeed, in just the first 15 minutes after the PENDLE/USDT pair started trading on Binance there was a total trading volume of over $7.2 million, which plummeted to $400,000 within an hour.
This is probably why the mini-bubble broke out as soon as it formed. Thereafter there was rarely any hourly trading volume above $500,000.
Such massive selling then ended, and in fact the price returned to more or less its pre-listing starting levels.
