Pendle's $2 Support Tested After Polychain's $4M Exit

The numbers don't lie: Pendle's price has been under significant pressure since Polychain Capital's exit at a reported $4 million loss. On December 14, 2025, Pendle's price hovered just above the critical $2 mark, a level that now seems to be the battleground for its future.

Total Value Locked (TVL) in Pendle's protocol has dropped 22% in the last month, from $1.3 billion to $1.02 billion, according to DefiLlama. This decline aligns with a broader trend of capital outflows across the DeFi sector, but Pendle's case is particularly stark. Daily trading volume on CoinGecko shows a 30% decrease over the same period, from $50 million to $35 million, suggesting waning interest or confidence in the platform.

Comparatively, other yield-bearing protocols on Ethereum have seen more modest declines. For instance, Yearn Finance's TVL dropped only 8% in the last month, and its trading volume remains stable at around $40 million daily. This disparity underscores the specific challenges Pendle faces.

Pendle's fee revenue has also taken a hit, falling from $1.2 million to $800,000 over the past 30 days, as reported by Dune. This decline in fees directly correlates with the reduced TVL and trading volume, painting a picture of a protocol struggling to maintain its market position.

The question now is whether Pendle can hold above $2. Historical data from CoinGecko shows that Pendle has bounced back from similar levels in the past, but the current market environment, coupled with the high-profile exit of Polychain, presents a unique challenge. If Pendle cannot stabilize at this level, further downward pressure could lead to a more significant correction.