Ondo Finance’s token, ONDO, has recently shown strong market activity, trading above $1.00 as investors aim to break free from a bearish trend. With a significant rise in the total value locked (TVL) on its platform, Ondo is poised for potential growth in the asset-weighted market.
Recent Performance Highlights of Ondo Finance
- On Friday, the price of ONDO surged above $1.13, marking a 5.8% increase in just 24 hours.
- As bullish sentiment grows, investors are targeting a breakout above $1.20, with sights set on reaching $2.00.
- The platform’s rapid increase in TVL surpassed $1.5 billion, driven by the recovery in risk-weighted assets.
With ONDO trading at an intraday high of $1.13, investors are optimistic, especially after a 16% increase over the past week, which has helped to alleviate monthly losses. This shift has provided a technical breakout potential after breaking its previous downtrend.
According to DeFiLlama, the total locked value in Ondo Finance has reached $1.57 billion, a pivotal milestone coinciding with the increasing demand for tokenized real-world assets (RWAs). The growth of Ondo’s tokenized products has been crucial for this momentum.
Notable products such as OUSG, a tokenized short-term U.S. Treasury fund, and USDY, a yield-bearing stablecoin, are key drivers of this demand.
The surge in RWA tokens has since boosted the market capitalization of these assets to over $75 billion. Additionally, the on-chain value of RWAs has exceeded $29 billion.
As per RWA.xyz, Ondo’s OUSG and USDY contribute approximately $1.4 billion, with $729 million and $657 million locked in each asset, respectively.
This growth in Ondo’s TVL is aligned with heightened investment opportunities in tokenized assets observed on Wall Street.
Price Targets and Market Outlook for ONDO
The increase in Ondo’s TVL has generated bullish sentiment, with analysts establishing a near-term price target of $2.00.
As the token rebounds aggressively from its recent lows, breaking above $1 offers an advantage to buyers. If this momentum continues, they may aim for a historical high of $2.14, established in December 2024.
However, buyers may first need to overcome initial resistance around $1.14. If successful, a rally towards $2 and a target of $2.40 could follow.
Market conditions, regulatory changes, and institutional approvals will be pivotal in this scenario. Planned collaborations with World Liberty Financial and integrations with BlackRock’s BUIDL fund further enhance this potential.
The rise to a $1.5 billion TVL underscores the maturation of Ondo DeFi, particularly in linking yield-generating assets with blockchain efficiency. Additionally, the global potential of risk-weighted assets is likely to serve as a major catalyst for Ondo’s future growth.
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