Spartan Capital, the crypto venture capital arm of Singapore-based Spartan Group, has reinforced its commitment to the decentralized finance (DeFi) protocol, Pendle Finance, through a strategic follow-on investment. The undisclosed amount was secured via an over-the-counter (OTC) purchase, marking a significant move in the collaboration between Spartan and Pendle.
Strengthening a Pioneering Partnership
Having been actively involved with Pendle since its inception in 2021, Spartan Capital highlighted the robust partnership between the two entities. The latest investment solidifies their shared vision for the transformative potential of Pendle in advancing on-chain yield trading.
“At Spartan Capital, we recognize the transformative potential of Pendle and their pivotal role in driving the advancement of on-chain yield trading,”emphasized Spartan, underlining their confidence in Pendle’s trajectory.
Pendle’s Phenomenal Growth in DeFi
Pendle Finance has emerged as a major player in the DeFi space, witnessing a remarkable surge of over 2,000% in total value locked (TVL) from November 2022, according to DefilLama data. Spartan Capital expressed optimism about Pendle’s solutions, particularly highlighting Liquid Staking Derivatives and the Real World Assets yielding project.
“The convergence of Liquid Staking Derivatives and Real World Assets presents an exceptional growth opportunity for the DeFi sector,”noted Kelvin Koh, Managing Partner at Spartan Capital.
“Pendle will be in a unique position as an accelerant for more future DeFi developments.”
DeFi Landscape and Spartan’s Confidence
Amidst the challenges faced by the DeFi industry in 2023, with a moderate 18% increase in TVL since the beginning of the year, Spartan Capital remains optimistic. Despite the sector’s struggle to regain early 2022 levels, Spartan believes in the enduring potential of DeFi, especially with innovative projects like Pendle.
In contrast to the DeFi landscape, other markets, including Bitcoin, have experienced significant growth in 2023. Bitcoin, the world’s largest cryptocurrency, has surged by over 120% since January, reaching new heights.
DeFi Funding Amid Economic Activity Flux
While DeFi-related economic activity has faced challenges in 2023, significant funding continues to flow into the sector. Earlier this year, venture capital group Blockchain Capital announced two new funds totaling $580 million, signaling sustained interest in DeFi development alongside gaming and infrastructure investment.