Key Points
- Ondo’s trading activity and price have increased significantly, suggesting a potential further price increase.
- The protocol’s Total Value Locked (TVL) has also surged, indicating strengthened trust in the project.
After the U.S. SEC announced the approval of eight Ethereum spot ETFs, Ondo’s price experienced a significant rally. The token’s price was $0.92 before the announcement, but it has since increased by 13.26% in the last 24 hours, surpassing the $1 mark.
The Connection Between Ondo and Ethereum
Ondo has a strong connection to Ethereum, which is why the recent development had such a significant impact. Ondo Finance, the team behind the project, recently moved its assets to BlackRock’s BUIDL tokenization fund, which operates on the Ethereum blockchain. Like Ondo, BUIDL allows users to earn yields on their U.S. dollar holdings, making Ondo a beta of the blockchain.
On-chain data showed that a trader exchanged 1,870 ETH for Ondo at an average price of $0.95 six days ago. Another participant who purchased the token in February still holds onto it, despite a 288% unrealized profit. This suggests that the token’s price could potentially rise above $1.08.
Ondo’s Trading Volume and TVL
At press time, data from Santiment showed that Ondo’s trading volume reached a monthly high of $449.50 million. This increase in volume indicates a rising interest in the token and suggests that its value might continue to rise. However, if the volume decreases while the price increases, Ondo’s uptrend could weaken, potentially leading to a price drop below the $1 mark.
The Total Value Locked (TVL) in Ondo Finance has also increased exponentially, reaching $438.42 million. TVL is a metric that shows the dollar value of assets locked or staked in the project, and an increase in this metric suggests that the protocol is healthy and trustworthy. If the TVL continues to increase, it could reach $1 billion in a few months, which could also lead to an increase in Ondo’s price.
Ondo Finance’s official website shows that it offers a 5.20% yearly yield on U.S. dollar deposits and 4.96% on U.S. treasuries.
