The reasons for the plunge of ETHFI, SSV and PENDLE today:
Mainly affected by the negative news of PENDLE in the Restake section of the staking track.
PENDLE has soared in the past due to the ETH re-staking boom, but now the points distribution of the related Eigenlayer project is far lower than expected, which has brought a great impact on PENDLE.
Specifically, the impact this time is mainly as follows:
The snapshot date of Eigenlayer is set on March 15, which means that many investors who participate in staking later will not be able to obtain the expected token rewards.
All points obtained based on LRT (which may be some kind of staking or reward mechanism), including YT in PENDLE (which may be some kind of points or tokens), have been postponed to the second time.
This affects many investors in projects such as PENDLE, RENZO, ETHFI, PUFFER, KELP, etc.
Due to the problem of the points mechanism, PENDLE's YT investors may face losses, causing them to redeem a large number of YT, which has greatly reduced PENDLE's total staked value (TVL).
Because the market cannot currently bear Eigenlayer's market value of up to $15 billion, tokens that are not sold in time may depreciate significantly.
The recent failure to redeem ezeth PT on PENDLE for ezeth at a 1:1 ratio has led people to question PENDLE's mechanism and valuation.
Eigenlayer's listing time is May 10th. Although we can see its true performance by then, at present, the valuation of this project may be too high, reaching $15 billion.
PENDLE has been hit by Eigenlayer's point system problems, but its core value as an interest rate swap agreement remains. If it can recover its market value, it will still be a project worth watching.
