Pendle PTs: The Engine Behind YBS Growth
As mentioned earlier, @pendle_fi PTs do "More Than" just Narratives Indicators in DeFi
We’ve seen this play out clearly across narrative cycles:
- ETH Restaking, led by @eigenlayer
- BTCFi driven by @Lombard_Finance and @babylonlabs_io
➥ And now, YBS have taken the lead with Ethena’s USDe at the center of the spotlight
While most eyes are on YBS and @ethena_labs, a closer look reveals something many overlook
➥ PTs are quietly powering the entire YBS ecosystem.
In my pool-level research, I found a striking pattern → PTs account for up to 83% of the total market cap in some YBS protocols such as @OpenEden_X, @strata_money, @Terminal_fi
→ Most of the capital is flowing through PTs, not the stablecoins themselves.
There are a few key reasons → PTs push YBS yields higher → Higher yields increase demand
➥ More demand = more stablecoin issuance → To scale supply, YBS projects need deep, liquid PT markets
This creates a self-reinforcing cycle → More Yield → More Supply → More Adoption
From a user’s point of view, holding PTs is often more profitable than holding the stablecoin itself.
Why?
- You lock in a higher, fixed APY
- You earn points for future airdrops
- You avoid market volatility and impermanent loss
➥ In short, PTs have become the backbone of the YBS sector, driving both protocol growth and user incentives.
Pendle PTs → Predictive Indicators of DeFi Narrative Rotations
PT market has undergone exponential growth ↓
+ Market size grew from $600M in early 2024 to over $9B → a 15x increase
+ Over $5B in PTs are now used as collateral in DeFi lending protocols
+ Last year, $21B+ in PTs have been settled with $1.5B in cumulative yield has been generated
→ In 2025, the number will be much more than that
But, one of the most powerful things about @pendle_fi PTs → How they can show us where money is moving across DeFi.
By watching PT flows, we can spot the big narratives early, before the rest of the market catches on.
By looking at where PTs are being added each month, we can build a clear picture of which narratives are rising and which are falling.
How the Narrative Changed Over Time ↓
➢ Q1–Q2 2024: Ethereum re-staking was king. PTs linked to @eigenlayer, @ether_fi and @puffer_finance made up around 95% of the market.
➢ Q3 2024: BTCFi started growing fast. Projects like @Lombard_Finance, @SolvProtocol pulled in more capital with more than 20% PT market share
➢ Q4 2024 to Q2 2025: YBS took over, led by @ethena_labs. YBS-linked PTs now make up 95% of all PTs, with $USDe alone at 80% of Pendle’s TVL.
What’s Next? Signs of New Narratives
As of the second half of 2025, two new narratives are showing strong early signs of growth:
➢ @HyperliquidX has already passed $1.5B in PT volume and @Plasma is preparing to receive a big wave of capital, more than $3B from Ethena’s maturing PTs on Ethereum
Right now, we are witnessing the DeFi product standard called PT Economics
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