Ondo and Chainlink Vie for RWA Dominance as Sector Grows

Ondo Finance ($ONDO) and Chainlink ($LINK) are two leading projects in the Real-World Assets (RWA) sector, each with distinct strategies and growth potential in the evolving decentralized finance (DeFi) landscape. The rivalry between the two is centered on innovation, scalability, and market capitalization trajectory, with both positioned to play significant roles in the tokenization of traditional assets.

Ondo Finance specializes in tokenized U.S. Treasuries, offering products like $USDY and $OUSG stablecoins that provide real yield to investors. These instruments are particularly attractive to institutional players seeking risk-averse exposure to RWAs. Additionally, Ondo’s upcoming Global Markets platform aims to tokenize hundreds of publicly traded stocks, bonds, and ETFs, offering 24/7 on-chain access without intermediaries. This initiative could significantly expand Ondo’s appeal and utility, positioning it as a key player in the tokenization of global securities markets [1].

The project also recently partnered with Chainlink and J.P. Morgan to execute a cross-chain Delivery versus Payment (DvP) transaction. This involved the atomic settlement of Ondo’s Short-Term U.S. Government Treasuries Fund ($OUSG) between a permissioned blockchain and Ondo’s layer-1 network. The collaboration highlights Ondo’s institutional credibility and ability to operate at scale within tokenized asset ecosystems [1].

Currently, $ONDO trades near $1 with a market cap of $3 billion, leaving ample room for potential growth. Approximately 3.15 billion of the 10 billion total tokens are in circulation, with a large unlock scheduled for January 2025. Whether this unlock is absorbed by the market will depend on the state of the broader crypto bull run [1].

Chainlink ($LINK), on the other hand, offers infrastructure for RWA settlements through its Cross-Chain Interoperability Protocol (CCIP). This tool enables the transfer of RWAs across blockchains, enhancing liquidity and accessibility. Another key development is Chainlink’s strategic on-chain reserve, which collects revenue from service usage and converts it into $LINK tokens, reducing supply and potentially increasing scarcity and price. Additionally, Chainlink provides decentralized Proof of Reserve for RWAs, verifying that tokenized assets are fully backed by off-chain reserves, a crucial feature for building trust among investors [1].

The $LINK price recently rose nearly 50% over 14 days, trading near $25 with a market cap of $16 billion. Approximately 678 million of the 1 billion total tokens are in circulation, with a slow and steady token burn rate supporting long-term sustainability [1].

Both projects are well-positioned in the RWA sector, but they differ in growth potential. Chainlink benefits from years of established infrastructure and enterprise adoption, while Ondo remains a newer player with a smaller market cap, offering more room for explosive growth. Analysts suggest that $LINK could potentially reach $100, representing a 4x return, whereas $ONDO may achieve a 10x return, reaching $10 [1].

The choice between the two depends on an investor’s risk tolerance and time horizon. For long-term stability, Chainlink is a strong bet. For those seeking higher growth potential, Ondo Finance may offer a more compelling opportunity.

Source: [1] Chainlink Link Vs Ondo – Which Altcoin Gains the Most in 2025? (https://coinmarketcap.com/community/articles/68a8129f54e7713cca689fd8/)