Ondo Finance Value Drops 60% Amid Altcoin Market Decline

Ondo Finance ($ONDO) has experienced a significant decline, with its value plummeting by over 60% from its December 2024 peak of $2.14. This downturn is part of a broader market trend, as the altcoin market cap has decreased by 41% since December 2024, falling from $1.6 trillion to $950 billion by mid-April. The bearish phase has affected most altcoins, with many seeing declines of over 40% from their 2024 highs.

Ondo Finance, launched in 2021, has been a pioneer in the real-world asset (RWA) tokenization movement. The platform offers access to institutional-grade financial products such as U.S. Treasuries, bonds, and money market funds by tokenizing them on the blockchain. In February, Ondo Finance took a significant step by launching its own Layer-1 blockchain protocol specifically designed for RWA tokenization. This new protocol, Ondo Chain, has attracted major players in the financial industry, including Franklin Templeton, WisdomTree, Google Cloud, McKinsey, BlackRock, and PayPal. These collaborations are aimed at enhancing the platform's capabilities and expanding its reach in the financial market.

Ondo Finance has also gained unexpected political momentum. Donald Trump Jr. spoke at the Ondo Finance Summit, and the Trump family-affiliated World Liberty Financial reportedly invested $460,000 into $ONDO just a week before the event. This political backing has added to the platform's credibility and visibility in the market.

Shortly after the launch of its Layer-1 protocol, Ondo joined Mastercard’s Multi-Token Network (MTN), introducing the Ondo Short-Term U.S. Treasuries Fund (OUSG) as the first RWA on the MTN. This partnership further solidifies Ondo's position in the stablecoin and DeFi market. Additionally, Ondo has forged partnerships with high-growth networks such as Aptos, which recently surpassed $1 billion in stablecoin TVL, reinforcing Ondo’s presence in the stablecoin and DeFi market.

Despite the market downturn, Ondo Finance has shown resilience. The project has crossed the $1 billion TVL mark in early March, putting it in close competition with legacy RWA institutions like BlackRock. Trading activity has also increased, with daily volume topping $300 million and annualized revenue reaching $6 million. Analysts argue that Ondo’s Global Market GM platform, which allows access to a broader range of tokenized assets, could reshape the RWA market beyond the limited offerings of existing players.

Technically, $ONDO is currently trading around $0.8219, reflecting a modest 2.8% decline on the 4-hour chart. The token is holding above a local support zone between $0.81 and $0.82, supported by the 100-period simple moving average (SMA) at $0.8161. However, the token’s broader market structure remains bearish, as it continues to trade below the 20, 50, and 200 SMAs, indicating prolonged downward pressure. Price action shows lower highs, with repeated rejections at the $0.88–$0.90 resistance zone, an area of past institutional interest. A breakdown below the current support could lead to a drop toward the $0.75–$0.77 demand zone or possibly even test the $0.70 level, where the last major rebound originated.

Institutional backing and strategic partnerships may provide some support for $ONDO, but the broader market trends and technical indicators suggest that the token could face further challenges in the near term. The resilience shown by Ondo Finance in the face of market volatility is a testament to its strong fundamentals and strategic vision. However, the path forward will depend on how the platform navigates the current market conditions and continues to innovate in the RWA tokenization space.