Why did ETHFI SSV PENDLE plummet today?
The main impact is still PENDLE, the negative impact of the re-staking track Restake sector. There is a saying that it is good to make or break Restake. Last year, the popularity of ETH re-staking increased by dozens of times. Now the points of the Eigenlayer project, the underlying protocol of ETH re-staking, are seriously lower than expected, which directly hit PENDLE. Most of the projects that do staking have been affected! $PENDLE $ETHFI $SSV
The main impacts are as follows!
1. The Eigenlayer snapshot is scheduled for March 15, and most of the latecomers who come to stake will not get tokens this time!
2. All points obtained by relying on the LRT track will be postponed to the second time, including YT (leverage points) in Pendle. RENZO, ETHFI, PUFFER, KELP, etc. are also affected by this negative impact!
3. Pendle YT investors are likely to suffer losses due to the points mechanism, resulting in a large number of YT redemptions, causing a sharp drop in Pendle TVL. The reason is very simple. According to the pre-market price, the total market value of Eigen has exceeded 15 billion US dollars. The market currently does not have the ability to take over projects with such a market value. Tokens that fail to be sold at the opening are likely to experience the harvest of the dead project and depreciate severely when the second phase is issued!
4. When redeeming ezeth PT on Pendle recently, it failed to redeem ezeth at a 1:1 ratio, which makes people re-understand the mechanism and valuation of Pendle!
5. Eigen will be listed on May 10th. We will know whether it is a mule or a horse at that time, but as I said, this project is not worth 15 billion FDV. Pay attention to the risks when listing.
Conclusion: Pendle is affected by the Eigen points system, which causes its valuation in the Restake track to be severely discounted, and its TVL will be greatly affected, but Restake is not all of it. For an interest rate swap agreement, it can be used in any project that earns points, so the long-term value still exists. If the market value can be significantly restored and falls below 3, it is still a project worth gambling on.
