Pendle token surges 53%, eyes ATH of $7.50 following partnership with Ethena (USDe)

The price of the PENDLE token has surged by 53% recently, aided by a partnership with Ethena (USDe). Technical analysis suggests that the price target could reach $7.80, potentially entering double-digit territory. A breakthrough above the critical support level at $5.23 could lead to a retest of the all-time high (ATH) of $7.50.

PENDLE Token’s Remarkable Rise

The PENDLE token has experienced a notable upward trajectory, gaining more than 53% over the past month and jumping by 21.6% in the last 24 hours alone. Market momentum has intensified following the announcement of a strategic partnership between Pendle Finance and Ethena, integrating the rapidly growing stablecoin USDe into Pendle’s yield-generating ecosystem on HyperEVM.

These pools are launching initially with limited capacity:

• $100M cap for sUSDe (Sep ‘25)

So be sure to get in early! pic.twitter.com/vYJzqDSRYQ

— Pendle (@pendle_fi) August 7, 2025

This collaboration, along with strong technical signals, could pave the way for the token to test its historical high of $7.50 again and potentially reach double-digit prices.

Integration of Ethena Fuels Powerful Looping Strategy

The bullish sentiment is driven by the innovative “looping” strategy made possible through the partnership with Ethena. Pendle’s unique model splits assets into Principal Tokens (PT) and Yield Tokens (YT). With USDe now integrated, users can purchase PT using USDe to lock in fixed yields, then borrow USDC against these PTs on Aave. The borrowed USDC can then be used to acquire more USDe, allowing the process to repeat.

This cycle has proven profitable, as PT yields currently average around 8.8%, well above Aave’s borrowing costs, which range from 4% to 6%. Aave takes a 10% fee on borrowing, while Pendle charges a 5% fee on PTs.

Notably, $4.3 billion (60% of the total USDe) has been locked in Pendle, and $3 billion has been deposited in Aave, highlighting the depth of this integration.

1/ Ethena’s USDe supply is up $3.7B in just 20 days, driven primarily by the Pendle-Aave PT-USDe looping strategy.

With $4.3B (60% of total USDe) now locked in Pendle and $3B deposited in Aave, here’s a breakdown of the PT loop mechanics, growth vectors, and potential risks:

— shaunda devens (@shaundadevens) August 6, 2025

Additionally, Pendle’s total value locked (TVL) is heavily concentrated in Ethena’s USDe market, representing approximately 60% of the total TVL of the protocol. To mitigate liquidation risks, Aave’s DAO has tethered USDe to the value of USDT, thus adding a layer of stability to the strategy. However, profitability relies on PT yields remaining above borrowing costs, and if yields decline, the appeal of the strategy could diminish.

Whale Movement of $4.65 Million in PENDLE Tokens

In an additional positive market environment, on-chain data revealed that a multi-signature wallet linked to Pendle deposited 900,000 PENDLE tokens, valued at approximately $4.65 million, into Binance. While the Pendle team has not disclosed the reason for this move, market observers suggest it may aim to enhance liquidity, support market maintenance, or prepare for strategic expansion.

In the 24 hours following the transfer, PENDLE’s price surged by 27.2%, reflecting heightened investor optimism. Such movements underscore the importance of monitoring blockchain activity, as significant transfers often precede major announcements or market shifts. However, they can also contribute to short-term volatility.

PENDLE Token Price Analysis Indicates Higher Targets

From a technical standpoint, PENDLE has reclaimed the midpoint of its long-term trading structure, breaking through a key resistance trend line and testing it again as support. Indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remain positive, signaling that bullish momentum is intact.

According to market analysis from popular analysts, $5.23 is a critical support level that PENDLE must maintain. Moreover, a move above $5.53 could pave the way toward $5.77, with $6.30 as the next resistance level. Additionally, wave counting patterns indicate that a powerful third sub-wave is in progress, with an initial target of $7.80, representing 1.61 times the length of the first wave.

Notably, a breakout above the 2025 peak would likely accelerate the advance toward new historical peaks and possibly into double-digit pricing territory. With strong fundamentals stemming from the partnership with Ethena, a rising TVL, favorable technical patterns, and increasing market interest, PENDLE appears well positioned for continued growth.