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Here’s Why Ondo Finance’s ONDO Token Hit New ATH, Defying Market Sentiment
Ondo Finance, a platform dedicated to the tokenization of real-world assets (RWA) and backed by Pantera Capital, has seen the value of its Ondo Finance (ONDO) token increase.
The coin soared almost 20%, reaching an all-time high of $1.15 on May 24, 2024. This milestone may have been largely due to Coinbase adding ONDO to its perpetual market.
Performance and future prospects
ChallengeLlama data shows that the increase in the ONDO token over the past 24 hours has pushed its market capitalization beyond $1.6 billion. On May 21, Ondo Finance also reached a peak total value locked (TVL) of $453 million, its highest level ever.
IntoTheBlock data also revealed a 52.3% increase in large trading volumes for ONDO, with all holders currently in a profitable position. The concentration of large holders is considerably high, at 92%, with approximately 63% of investors holding their tokens for periods between one and twelve months.
Since mid-March, ONDO price has fluctuated between $0.97 and $0.69, but broke out on Friday. A 10% rally ended the consolidation, pushing ONDO to an initial record high of $1.05. Currently in a price discovery phase, investors expect the bullish momentum to continue pushing it higher. As of this writing, ONDO is currently hovering around the ATH price of $1.15 and its TVL is $445 million.
Catalysts and market sentiment
The rally took place amid the United States Securities and Exchange Commission (SEC). approving Spot Ethereum exchange-traded funds (ETFs). Even though the green light had a controversial impact on the rest of the market, ONDO is among the best performers on a daily basis.
Since its launch earlier this year, ONDO has seen strong demand and is up over 1,300% from its all-time low.
Another major catalyst behind ONDO’s price rise could be related to Coinbase adding the asset to its perpetual market. According to the announcement, trading has started for ONDO-PERP, PYTH-PERP and ZETA-PERP on the perpetual markets.
The exchange platforms, Coinbase International Exchange and Coinbase Advanced, are now fully operational for trading and offer different order types, such as limit, market, stop and stop-limit orders. Initially, the ONDO-PERP, PYTH-PERP and ZETA-PERP markets will enter post-only mode on Coinbase International Exchange and Coinbase Advanced.
Following this announcement, several market traders issued bullish calls for ONDO. One pointed out that ONDO represents a powerful “beta ETH” that is likely to gain attention soon.
Another predicted an upcoming push into the “real-world asset narrative,” highlighting ONDO’s remarkable performance, ranking closely behind major Layer 1 platforms and meme tokens this week. Additionally, the crypto trader suggested that investing in ONDO presents a good alternative for those who are unable to acquire securitized tokens, qualifying it as the second best option.