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Ondo Finance (ONDO) explodes 122%
Ondo Finance (ONDO), a decentralized finance (DeFi) protocol focused on tokenizing US Treasuries, has witnessed a meteoric rise in the price of its native token over the past week. According to CoinMarketCap, although ONDO was only able to generate a meager 1.3% increase over the past day – while pushing its value to an all-time high of $0.94 – this impressive feat follows a 138% weekly gain, marking an impressive performance for the token.
ONDO marks Banner Week with big numbers
ONDO doing things right on the weekly chart. Source: Coingecko
Analysts attribute the surge to a confluence of factors. Whale investors, known for their large holdings and market influence, have been accumulating ONDO at a substantial rate. Data from on-chain tracking platform Lookonchain reveals that three whale wallets recently withdrew over 9 million ONDO, worth approximately $9 million, from various exchanges. This behavior suggests a long-term bullish outlook on the token’s potential, potentially incentivizing a follow-the-leader mentality among retail investors.
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The whales accumulate #RWA token $ONDO!
Whale “0x56F9” withdrew 6.53M $ONDO($5.88 million) #Bybit over the past month.
The new wallet “0x92dD” withdrew 1.98 million $ONDO($1.78 million) of #Gateio over the last hour.
“0xE6bf” wallet withdrew 937,600 $ONDO($845,000) from #Gateio 3 hours ago.
Address:… pic.twitter.com/o5jWqhresp
– Lookonchain (@lookonchain) March 25, 2024
Indeed, Santiment data analyzed by NewsBTC shows a 30% increase in the total number of ONDO holders since March 19, surpassing the 10,000 mark. This influx of new investors, likely influenced by the actions of whales and the general hype around tokenization, has further fueled the rise in the price of the token.
Total crypto market cap at $2.5 trillion on the daily chart: TradingView.com
ONDO’s recent rise in popularity coincides with a broader trend within the DeFi space. Last week, global investment giant BlackRock announced the creation of a tokenized fund on the Ethereum blockchain, allowing investors to earn returns in US dollars through a decentralized platform. The move highlights growing interest in tokenization, which involves representing real-world assets such as securities, currencies and real estate on a blockchain.
TVL is not impressive despite a weekly increase
However, amid the celebratory atmosphere surrounding the token’s price surge, a curious detail emerges. Despite the significant increase in ONDO’s value, the platform’s total value locked (TVL), a metric reflecting the total value of crypto assets deposited in its DeFi protocols, has remained relatively stagnant over the past week. Although the reasons for this discrepancy are unclear, it could worry some investors. A stagnant TVL could suggest that the recent price increase does not necessarily translate into increased usage of the Ondo Finance protocol itself.
Overall, the past week has been undeniably positive for Ondo Finance. The token’s impressive price surge, coupled with the current tokenization hype and strategic alignment with BlackRock’s recent venture, paints a promising picture for the future. However, the stagnation of TVL is a reminder that long-term sustainability depends not only on speculation, but also on real-world adoption and continued development of the Ondo Finance ecosystem.
Featured image from AlphaTradeZone/Pexels, chart from TradingView