Ondo's Tokenized Stocks Challenge Liquidity Norms in RWA Race

Ondo Finance’s tokenized securities platform has introduced over 100 U.S. stocks and ETFs onchain, primarily on Ethereum, expanding to 1,000 assets by year-end and aiming to support BNB Chain and Solana soon. This development positions Ondo as a key player in tokenized real-world assets (RWAs), leveraging partnerships with platforms like 1inch and Bitget Wallet. These tokenized stocks offer 24/7 trading capabilities and are backed by traditional exchange liquidity, distinguishing Ondo from other tokenized platforms that often suffer from low liquidity or restricted transferability [1].

The ONDO token, the governance token for the Ondo DAO, has experienced mixed performance. As of the latest data, ONDO is trading at $0.94, with a market cap of $2.97 billion and a total supply of 10 billion tokens. Despite a 4% increase in the last 24 hours, the token has declined by 10.11% over the past month. Analysts note that the token's current price of $0.94 is near a key support level at $0.87. This level has held steady since mid-July, despite broader altcoin market volatility. The Coin Market Cap Flow (CMF) indicator shows outflows below -0.05, suggesting capital is leaving the market and sellers are dominating. If this trend continues, the token may fall below the $0.87 support, intensifying downward pressure [1].

Despite the bearish price action, several on-chain metrics suggest ONDO might be undervalued. Network growth and daily active addresses have remained stable since late July, indicating no significant decline in user activity. Additionally, the "age consumed" metric, which measures the movement of dormant tokens, has remained quiet. Typically, a surge in this metric precedes or occurs during a sell-off, but its recent stability suggests fewer idle tokens are being moved, which is a positive sign [1].

The supply distribution also shows signs of accumulation. Smaller wallets holding up to 1 million ONDO tokens have shown steady buying pressure, while larger wallets (1 million to 100 million ONDO) have slightly decreased in number over the past ten days. This shift, combined with a low Spent Output Profit Ratio (SOPR) of 0.98, suggests that ONDO holders are selling at a loss. Values below 1 on the SOPR indicate a bearish sentiment, yet this could also signal a potential buying opportunity if the token is indeed undervalued [1].

Ondo’s strategic expansion is attracting attention from both institutional and retail investors. The platform recently announced a $250 million investment initiative in real-world asset projects, in collaboration with Pantera Capital. This effort aims to bring traditional financial markets and digital assets closer together, with a focus on tokenized equities and treasuries. Ondo is also integrating with Block Street, a startup offering institutional-grade liquidity for tokenized stocks, and has partnered with Kraken, Bybit, and Gate to expand xStocks support across multiple blockchains [1].

While Ondo’s tokenized assets continue to gain traction, the broader market remains cautious. ONDO faces competition from other tokenization platforms such as Kraken’s xStocks and Robinhood’s onchain equities, which are also expanding their offerings. Despite these challenges, Ondo’s approach—focused on accessibility, liquidity, and institutional integration—positions it as a strong contender in the growing RWA market. With projections suggesting the tokenized market cap could reach $2 trillion by 2030, Ondo’s early expansion could provide long-term value for investors [1].

Source: [1] Ondo debuts over 100 tokenized US stocks and ETFs on ... (https://www.theblock.co/post/369284/ondo-tokenized-stocks-etfs-ethereum-bnb-chain-solana)