Pendle Circulating Supply Hits Record Low as Buybacks Outpace Minting 5-to-1
AI Market Summary
Pendle reports PENDLE circulating supply at an all-time low as protocol fee revenue used for buybacks exceeds token minting by 5x, implying net deflationary token flows. Additionally, ~92% of sPENDLE holding addresses have never unstaked, signaling sticky staking participation and reduced liquid float. Near-term, this can tighten market liquidity and increase sensitivity to incremental demand around Pendle ecosystem activity.
Impact level
● Medium
Affected assets
PENDLE/USDT+1.22%
AI Insight · PENDLE/USDTAI Insight
▲ Bullish
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According to a report by Foresight News on Aug. 4 (UTC+8), the decentralized finance protocol Pendle announced via social media that the circulating supply of its native token, PENDLE, has reached an all-time low. This supply contraction is primarily attributed to the protocol's aggressive buyback mechanism, where fee revenue used to repurchase PENDLE is currently outpacing the token's minting rate by a ratio of five-to-one. Furthermore, Pendle highlighted strong long-term conviction among its user base, noting that approximately 92% of addresses holding sPENDLE have never unstaked their positions. This combination of deflationary pressure from buybacks and high staking loyalty significantly reduces the available market float, signaling a robust tokenomic structure for the protocol as it continues to scale its yield-trading operations.
