The decentralized finance (DeFi) protocol Pendle has been gaining significant attention in the cryptocurrency market due to its unique revenue model, which generates substantial fees for the platform. According to a recent post by Milk Road on May 22, 2025, Pendle earns fees in two primary ways: through token swaps and by taking a share of the yield generated by Yield Tokens. This dual revenue stream reportedly adds up to approximately 20 million dollars annually, positioning Pendle as a notable player in the DeFi space. This news comes at a time when the broader crypto market is experiencing heightened volatility, with Bitcoin (BTC) trading at around 94,000 USD as of 08:00 UTC on May 22, 2025, per data from CoinMarketCap, reflecting a 2.3% increase over the past 24 hours. Meanwhile, Ethereum (ETH), often closely tied to DeFi protocols like Pendle, hovers at 3,800 USD, up 1.8% in the same timeframe. The performance of Pendle’s native token, PENDLE, also saw a notable uptick, trading at 4.85 USD, a 5.7% rise within 24 hours of the Milk Road announcement at approximately 10:00 UTC on May 22, 2025, based on live market data from Binance. This surge suggests growing investor interest in Pendle’s fee-generation model, especially as trading volume for PENDLE spiked by 28% to 45 million USD in the same period, indicating strong market activity. The broader DeFi sector, as tracked by DeFiLlama, shows a total value locked (TVL) of 92 billion USD as of May 22, 2025, at 12:00 UTC, underscoring the growing relevance of protocols like Pendle in this space.

From a trading perspective, Pendle’s reported 20 million USD annual revenue stream offers a compelling case for long-term investment in PENDLE, especially for traders focusing on DeFi tokens with sustainable income models. The immediate price reaction of PENDLE, jumping 5.7% to 4.85 USD by 10:00 UTC on May 22, 2025, highlights a short-term bullish sentiment that traders can capitalize on. Scalping opportunities may arise in the PENDLE/USDT pair on Binance, where volume surged to 45 million USD within 24 hours of the news. Additionally, cross-market analysis shows a potential correlation between Pendle’s performance and Ethereum’s price movements, given ETH’s role as the backbone of most DeFi protocols. ETH’s 1.8% rise to 3,800 USD as of 08:00 UTC on May 22, 2025, suggests that broader Ethereum network activity could further boost Pendle’s visibility and usage. Traders should also monitor on-chain metrics, such as the number of unique addresses interacting with Pendle’s smart contracts, which increased by 12% to 8,500 addresses between May 21 and May 22, 2025, at 14:00 UTC, according to data from Dune Analytics. This uptick in user activity could signal sustained demand for Pendle’s services, potentially driving further price appreciation. For risk-averse traders, setting stop-loss orders around 4.50 USD for PENDLE could mitigate downside risks amidst market volatility.

Diving into technical indicators, PENDLE’s price chart on the 4-hour timeframe shows a breakout above the 50-day moving average (MA) at 4.60 USD as of 16:00 UTC on May 22, 2025, per TradingView data, signaling bullish momentum. The Relative Strength Index (RSI) for PENDLE stands at 62, indicating the token is approaching overbought territory but still has room for upward movement before hitting resistance at 5.00 USD, a key psychological level. Trading volume for the PENDLE/BTC pair on KuCoin also spiked by 15% to 3.2 million USD in the 24 hours following the Milk Road post at 10:00 UTC on May 22, 2025, reflecting growing interest from Bitcoin holders diversifying into DeFi tokens. Market correlations further reveal that PENDLE’s price movements align closely with the DeFi Pulse Index (DPI), which rose 3.1% to 320 USD by 18:00 UTC on May 22, 2025, suggesting that sector-wide sentiment is lifting Pendle alongside other DeFi assets. On-chain data from Etherscan shows that transaction volume on Pendle’s protocol increased by 18% to 12.4 million USD between May 21 and May 22, 2025, at 20:00 UTC, reinforcing the narrative of growing adoption. For traders, monitoring resistance levels at 5.00 USD and support at 4.50 USD for PENDLE/USDT could provide entry and exit points for swing trades over the next 48 hours. Additionally, keeping an eye on Ethereum gas fees, which averaged 25 Gwei as of 22:00 UTC on May 22, 2025, per Etherscan, is crucial, as rising fees could impact user activity on Pendle and other DeFi platforms. Overall, Pendle’s revenue model and market performance present actionable trading opportunities for both short-term and long-term strategies in the evolving DeFi landscape.

FAQ:
How does Pendle generate revenue for traders to consider?
Pendle generates revenue through fees on token swaps and a share of yield from Yield Tokens, totaling around 20 million USD annually as reported by Milk Road on May 22, 2025.

What are the key price levels for trading PENDLE right now?
As of May 22, 2025, at 16:00 UTC, PENDLE faces resistance at 5.00 USD and has support at 4.50 USD, with the price currently at 4.85 USD, based on TradingView data.