- The circulation of income-based stablecoins reached $11 billion, accounting for 4.5% of the total stablecoin market.
- The decentralized Pendle Protocol emerged as a significant player, controlling approximately 30% of this market.
- Pendle allows users to trade the principal and yield components of yield-generating assets.
Pendle Protocol has significantly increased its market share, controlling 30% of yield-bearing stablecoins as of May 2025.
The expansion of income-based stablecoins to $11 billion exemplifies their growing role in the broader crypto market.
Pendle Dominates 30% of Yield-Bearing Stablecoin Market
Pendle’s share of TVL is notable, with 83% comprising stablecoins, marking a shift from assets like Ethereum. Ethereum’s share within Pendle decreased from 80–90% to under 10%, showcasing a growing preference for stablecoins within Pendle’s ecosystem.
Market analysts have recognized Arthur Hayes’ past comments favoring protocols that leverage underlying interest, such as Pendle. Hayes once said, “The structural yield gap faced by holders of traditional stablecoins favors protocols that unlock this value, like Pendle and Ethena.”
Shift to Stablecoins Highlights DeFi Preferences
Did you know? Pendle’s shift from less than 20% stablecoins to 83% in its TVL represents a significant evolution in DeFi preferences, paralleling historical shifts in market dominance by new financial technologies.
Ethereum (ETH) trades at $2,515.26, with a market cap of $303.66 billion and a 24-hour trading volume of $31.15 billion, marking a 37.69% change. Its 30-day price surged by 59.77%, as per CoinMarketCap data.
Financial analysts from Coincu Research anticipate stablecoins’ expanding role will influence the financial landscape. The evolution in DeFi products like Pendle drives a shift toward greater yield distribution, offering broader options for investors seeking stable returns.
Source: https://coincu.com/338965-stablecoin-market-pendle-protocol-expansion/