Pendle, a prominent DeFi protocol, has seen a dramatic 40% decline in its total locked value (TVL) over the past week.

Since Wednesday, users have withdrawn nearly $3 billion, reflecting a noticeable decrease in interest in restaking airdrops. This decline is further compounded by the imminent conclusion of Renzo’s points program at the end of July.

An analyst on X reported that Pendle’s woes were exacerbated by market expirations, which led to a significant reduction in user deposits by more than a third on Thursday. The withdrawals, amounting to nearly $3 billion in liquid restaking tokens, have occurred in a whirlwind over the past few days.

As of Monday, Pendle’s user deposits have stabilized slightly but still remain at a diminished total of just over $3.7 billion. This substantial reduction in TVL underscores the challenges facing the DeFi protocol amidst shifting market dynamics and user sentiment.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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