In a strategic move to bolster the Decentralised Finance (DeFi) sector, Spartan Capital, the crypto venture capital arm of Singapore-based digital asset investment firm Spartan Group, has made a follow-on investment in Pendle Finance through an Over-the-Counter (OTC) purchase. This development comes after Spartan Capital’s active support for Pendle since its launch in 2021.
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Spartan and Pendle’s Strong Partnership
Highlighting the robust partnership between Spartan and Pendle, the crypto venture capital firm expressed its commitment to the transformative potential of Pendle. The follow-on investment is positioned to support Pendle Finance in realising its ambitious goals within the DeFi space.
Spartan noted, “At Spartan Capital, we recognise the transformative potential of Pendle and their pivotal role in driving the advancement of on-chain yield trading,” emphasising the shared vision and collaborative efforts between the two entities.
Pendle’s Remarkable Growth
Pendle Finance has witnessed substantial growth, with its Total Value Locked (TVL) soaring over 2,000% within a year, according to DefilLama data from November 2022. Spartan Capital expressed confidence in Pendle’s innovative solutions, particularly highlighting Liquid Staking Derivatives and the Real World Assets yielding project. Spartan believes these will attract more off-chain capital to the DeFi industry.
Kelvin Koh, managing partner at Spartan Capital, stated, “The convergence of Liquid Staking Derivatives and Real World Assets presents an exceptional growth opportunity for the DeFi sector.” He further highlighted that Pendle’s yield trading toolkit is poised to complement and add value to various digital, yield-bearing assets, positioning Pendle as a catalyst for future DeFi developments.
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DeFi Space Amid Industry Challenges
Spartan’s optimism about DeFi comes when the industry faces challenges in gaining momentum in 2023. Despite a modest 18% increase in total DeFi TVL since the beginning of the year, the sector has not yet reclaimed the levels observed in early 2022, experiencing a 279% dip from the all-time highs recorded in November 2021.
In contrast, markets like Bitcoin have shown impressive surges, with the world’s largest cryptocurrency experiencing over 120% growth since January. Despite the overall economic activity decrease in DeFi this year, the sector has seen substantial funding. Earlier this year, venture capital group Blockchain Capital announced two new funds totalling $580 million, focusing on DeFi development, gaming, and infrastructure investment.
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Spartan Capital’s Stance
Spartan Capital did not immediately respond to Cointelegraph’s request for comment, leaving room for speculation about the crypto venture capital firm’s strategic considerations and potential future moves.
Ultimately, the partnership between Spartan and Pendle is poised to contribute to the growth and innovation within the decentralised finance landscape, paving the way for further advancements in on-chain yield trading. As the industry navigates uncertainties, strategic investments like these become crucial for sustaining and propelling the DeFi sector forward.