Here’s Why Ondo Finance’s ONDO Token Soared to New ATH, Defying Market Sentiment

Ondo Finance, a platform dedicated to tokenizing real-world assets (RWA) and backed by Pantera Capital, witnessed an increase in the value of its token Ondo Finance (ONDO).

The coin soared nearly 20%, hitting an all-time high of $1.15 on May 24, 2024. This milestone was perhaps largely fueled by Coinbase’s addition of ONDO to its marketplace perpetual

Performance and future prospects

Data from DefiLlama shows that the ONDO token’s rise over the past 24 hours has pushed its market cap past $1.6 billion. On May 21, Ondo Finance also hit a peak Total Locked Value (TVL) of $453 million, its highest level ever.

Data from IntoTheBlock also reveals a 52.3% increase in large transaction volumes for ONDO, with all holders currently in a profitable position. The concentration of large holders is significantly high at 92%, with around 63% of investors holding their tokens for periods between one and twelve months.

Since mid-March, ONDO’s price has fluctuated between $0.97 and $0.69, but it broke out on Friday. A 10% rally ended the consolidation, pushing ONDO to an early record high of $1.05. Now in a price discovery phase, investors expect the bullish momentum to continue pushing it higher. At the time of writing, ONDO is hovering around the ATH price of $1.15, and its TVL is $445 million.

Catalysts and market sentiment

The rally came amid the US Securities and Exchange Commission (SEC) approving Ethereum exchange-traded funds (ETFs). While the green light has had a controversial impact on the rest of the market, ONDO is among the top performers on a daily basis.

Since its launch earlier this year, ONDO has seen strong demand and is up more than 1,300% from its all-time low.

Another major catalyst behind ONDO’s price hike could be related to the addition of Coinbase’s asset to its perpetual market. According to the announcement, trading has begun for ONDO-PERP, PYTH-PERP and ZETA-PERP in the perpetual markets.

Our ONDO-PERP, PYTH-PERP and ZETA-PERP markets are now in full trading mode on Coinbase International Exchange and Coinbase Advanced. Limit, market, stop and stop limit orders are now available. $ONDO $PYTH $ZETA pic.twitter.com/B7sHLUx3HR

— Coinbase International Exchange 🛡️ (@CoinbaseIntExch) May 23, 2024

The exchange’s platforms, Coinbase International Exchange and Coinbase Advanced, are now fully operational for trading and offer various order types, including 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 the announcement, several traders in the market have issued bullish calls on ONDO. One emphasized that ONDO represents a powerful “beta ETH” that is getting attention soon.

Another predicts an upcoming rise in the “real-world asset narrative,” noting ONDO’s remarkable performance, lagging well behind the top tier 1 platforms and meme tokens this week. Additionally, one crypto trader suggested that investing in ONDO presents a good alternative for those unable to purchase securitized tokens, calling it the next best option.

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