Ondo Finance (ONDO), a decentralized finance (DeFi) protocol focused on tokenizing US treasury bonds, witnessed a meteoric rise in the price of its native token last week. According to CoinMarketCap, although ONDO only managed a meager 1.3% increase in the last day – still pushing its value to a record $0.94 – the impressive feat comes on the heels of a Weekly gain of 138%, 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 this increase to a confluence of factors. Whale investors, known for their significant holdings and market influence, have been accumulating ONDO at a substantial pace. Data from on-chain tracking platform Lookonchain reveals that three whale wallets recently withdrew more than 9 million ONDOs, worth around $9 million, from various exchanges. This behavior suggests a bullish long-term outlook on the token’s potential, potentially inciting a follow-the-leader mentality among retail investors.
The whales are piling up #RWA symbol $ONDO!
Whale “0x56F9″ withdrew 6.53M $ONDO($5.88 million) #Bybit last month.
New wallet “0x92dD” withdrew 1.98 million $ONDO($1.78 million) #Gateio on one’s last legs.
Wallet “0xE6bf” withdrew 937,600 $ONDO($845 thousand) from #Gateio 3 hours ago.
Address:… pic.twitter.com/o5jWqhresp
– Lookonchain (@lookonchain) March 25, 2024
In fact, 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 whale actions and the general enthusiasm surrounding tokenization, further fueled the token’s price recovery.
Total crypto market cap at $2.5 trillion on the daily chart: TradingView.com
The recent rise in ONDO’s popularity coincides with a broader trend in the DeFi space. Last week, global investment giant BlackRock announced the creation of a tokenized fund on the Ethereum blockchain, allowing investors to earn US dollar yields through a decentralized platform. This move highlights the 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 weekly increase
However, amid the celebratory atmosphere surrounding the token’s price increase, a curious detail emerges. Despite the significant increase in ONDO’s value, the platform’s total value locked (TVL), a metric that reflects the total value of crypto assets deposited into its DeFi protocols, has remained relatively stagnant over the past week. Although the reasons behind this discrepancy are unclear, it may be a cause for concern for some investors. A stagnant TVL may suggest that the recent price increase does not necessarily translate into increased usage of the Ondo Finance protocol itself.
Overall, last week was undeniably positive for Ondo Finance. The token’s impressive price rise, coupled with the current tokenization hype and strategic alignment with BlackRock’s recent venture, paints a promising picture for the future. However, TVL’s stagnation serves as a reminder that long-term sustainability depends not just on speculation, but also on real-world adoption and the continued development of the Ondo Finance ecosystem.
Featured image from AlphaTradeZone/Pexels, chart from TradingView
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