Pendle price has been on an uptrend for the past seven days, becoming the best-performing real-world asset (RWA) token in that sector. PENDLE gained a staggering 27% in a week, bringing its market cap to $547 million. This is after the asset suffered a 74% pullback for almost three months, from May to August. Will Pendle survive the launch of Donald Trump’s new RWA-based decentralized finance project?
Can Pendle Price Compete with Trump’s World Liberty Finance (WLFI)?
While the price of Pendle is fighting to regain glory, Donald Trump has announced plans to launch ‘World Liberty Financial.’ a decentralized finance (DeFi) protocol, on September 16 at 8:00 p.m UTC.
.@worldlibertyfi pic.twitter.com/mwhVIzPJyq
— Donald J. Trump (@realDonaldTrump) August 29, 2024
Trump intends to switch from slow and outdated big banks to embrace crypto. According to Trump’s son, Eric Trump, the World Liberty Financial (WLFI) project involves digital real estate, immediately potentially setting the protocol in the real-world asset tokenization sector.
According to Coingecko, the growing RWA tokenization industry is currently at a $6 billion market cap, with most tokens, including Pendle price, performing fairly well in the past week.
Will New BTC Staking Feature Help Against WLFI?
Aside from being the 45th president of the United States of America, Donald Trump is known for his strong business and financial acumen that has catapulted his net worth to a staggering $7.5 billion. According to Bloomberg’s ranking, this sets him as one of the world’s 500 richest people.
Meme coins associated with Trump have performed insanely well in the past, making investors question whether WLFI can repeat the same performance.
Pendle is the third largest RWA coin by market cap, according to CoinGecko. The protocol is known for its enhanced yield strategies for ERC-20 tokens and recently introduced Bitcoin (BTC) pools to provide the same service for BTC holders.
Pendle’s PT lock-in APY has up to 12% APY, which can increase. But is this enough to keep Pendle surging as a new competitor enters the market? Pendle price has dropped by 1.9% in the last 24 hours and is trading at $3.45.
PENDLE Technical Analysis: 174% Surge In Play
The Pendle price is showing classic signs of a breakout after a prolonged period of correcting. The price of PENDLE hit $7.5 in April, shortly before forming a double top and crashing over 74% to $2.
Nevertheless, with the revival of the RWA sector, the price of Pendle has experienced a successful week, gaining 27% from yearly lows and setting sights on new all-time highs (ATH).
PENDLE chart shows a corrective wave beginning to form. Candlestick analysis of the past 5 weeks shows a potential double bottom forming, which if completed, could send the asset back to previous yearly highs.
Nevertheless, PENDLE must first beat an immediate reistance levels wound $3.5 before it can rise higher. Another potential support level around $4.00 has turned into resistance and could be the next significant barrier Pendle needs to overcome.
If the price of PENDLE fails to break above the current $3.5 resistance, it may signal market weakness. PENDLE could drop lower to the next support at $2.00, and if sell pressure persists, drop even lower to $1.00.
Frequently Asked Questions (FAQs)
Trump’s WLFI project, set to launch soon, focuses on real-world asset (RWA) tokenization and digital real estate, entering a market where Pendle has been a key player. While the new competitor may shift some attention away from Pendle, Pendle’s established market position, strong staking features, and existing user base may help it weather the competition.
Pendle is currently one of the top RWA tokens by market cap and has a strong DeFi infrastructure with competitive yield strategies. However, Trump’s high-profile entrance into the space with WLFI, combined with his business acumen, may draw significant investor attention.
Pendle’s introduction of a BTC staking feature with up to 45% yields has attracted investor interest and could help Pendle outperform WLFI in the short term. This feature differentiates Pendle in the DeFi space, focusing on high-yield strategies for BTC and other ERC-20 tokens. If Pendle can maintain strong staking returns, it may retain its competitive edge.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/can-pendle-price-hit-10-amid-launch-of-trumps-new-rwa-defi-project/
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