Ondo Finance's TVL Hits $1.186 Billion, ONDO Token Dips 1.89%

Ondo Finance, a leading crypto-native tokenized treasury platform, has been gaining traction in the market. The platform, which manages over $1 billion in value for its USDY and OUSD “yieldcoin” offerings, has seen a significant increase in total value locked (TVL) in its products, recently hitting a new all-time high of $1.186 billion. This surge in institutional investment has been a key driver of Ondo's growth.

The native token of Ondo Finance, ONDO, has been experiencing price fluctuations. Recently, the token dipped to $1.0243, marking a 1.89% decrease as bulls took a breather. However, this dip did not breach the key support level of $1.00, which is crucial for the token's next move. The resistance levels for ONDO are currently around $1.10–$1.20, while solid support stands near $0.98 and $0.95. If ONDO remains above the $1.00 resistance, it could target a measured move to $1.686, adding the cup's depth to the breakout point.

Ondo's innovative Real-World Asset (RWA) model, which integrates traditional financial products and liquidation mechanisms onto the blockchain, has been a significant factor in its success. The platform's USDY token, for example, is backed by short-term U.S. Treasury bonds and bank deposits, providing real income support and ensuring transparency and security. This model has set a standard for the industry, allowing high-quality assets to obtain higher liquidity opportunities and utilization efficiency.

Ondo Finance has also developed Flux Finance, a lending protocol exclusively for RWA. This protocol allows users to use tokenized government bonds as collateral to borrow stablecoins, providing liquidity to assets on the chain while ensuring compliance with U.S. regulations. The platform's infrastructure, including the Ondo Chain and Ondo Global Markets (Ondo GM), further supports the seamless integration of RWA assets into the blockchain ecosystem.

Ondo Finance's compliance with U.S. regulations has been a key factor in its success. The platform has actively set limits on U.S. users in product design to avoid high-pressure regulatory areas. It has also taken measures to ensure compliance in custody, auditing, and bankruptcy isolation, even for overseas users. The platform's dialogue with U.S. regulators, including negotiations with the U.S. Securities and Exchange Commission (SEC), has paved the way for the legal landing of tokenized securities in the U.S. market.

Ondo's recent rally has shown signs of profit-taking, with the Spent Output Profit Ratio (SOPR) rising to 1.53 on the 9th of May, indicating that holders' profits had decreased despite the price remaining around $1. The mean coin age has been trending higher since mid-March, with a brief dip on the 8th of May during the Ondo rally, suggesting some token movement from holders, likely due to profit-taking activity. The lack of movement in dormant circulation over the past three weeks further supports the conclusion of increased profit-taking from short-term holders.

Ondo's ability to hold above the $1.00 support level will determine its next move. If the token closes decisively below this key support zone, it could swiftly move toward the next significant support level near $0.78 or even lower. Conversely, if ONDO breaks and holds above the minor resistance at $0.9660, it could see a push toward the $1 zone, potentially leading to a bullish reversal. The significance of the $1.00 support level cannot be overstated, as it will play a crucial role in determining the token's future trajectory.