According to reports from AMBCrypto, Pendle [PENDLE] has experienced a significant decline in on-chain activity since September 25th. The transaction count has fallen from 1,246 to approximately 667, representing a nearly 46% decline within this period. Similarly, the number of Active Addresses decreased from 651 to roughly 387, marking a 40.5% decline. This substantial drop in protocol utility often indicates reduced asset performance and market participation. The decline aligns with a broader retreat in DeFi tokens, with major DEX and yield tokens down 7-9% on the day, adding downward pressure on Pendle and other DeFi protocols.
As reported by AMBCrypto, the market has witnessed significant selling pressure with long positions losing approximately $261,000 while short positions lost $9,660 over the past 24 hours. This creates a liquidation gap where longs have lost 27 times more capital than shorts, meaning for every $1 lost by longs, shorts lost $27. The Whale Retail Delta tool confirms that whales are taking the lead role in market activity, with their large asset holdings suggesting they are responding to current market conditions. The broader DeFi sector weakness, triggered by geopolitical risks including Iranian tanker attacks that pushed oil prices higher and lifted Treasury yields, has compounded the pressure on Pendle and other DeFi tokens.
Despite the bearish price action, market sentiment remains cautiously optimistic according to AMBCrypto analysis. The Funding Rate stands at 0.0032%, which suggests investors maintain a bullish outlook. When the Funding Rate is positive, it indicates traders are positioning for a rally, and the massive liquidation gap combined with whale presence could suggest the current decline represents a stop hunt strategy. However, the broader DeFi sector weakness, with major DEX and yield tokens down 7-9% on the day, suggests that Pendle's struggles are part of a sector-wide correction rather than protocol-specific issues.
According to AMBCrypto analysis, the struggling market conditions haven't deterred bullish sentiment from Pendle. The combination of heavy whale activity, positive Funding Rate, and potential stop hunt dynamics could create conditions for a price rebound. However, the significant decline in transaction activity and active addresses raises concerns about the protocol's current utility and long-term performance prospects. The immediate path hinges on Bitcoin's stability, with Pendle's 30-day average around $0.75 providing nearby support. Holding this level could allow a recovery toward the $0.85 resistance zone, though if Bitcoin breaks below $83,000, it could trigger another wave of liquidations, potentially pushing Pendle toward the $0.70 area.
