Tokenized Stocks: Flow Metrics and the ONDO Token Test

The tokenized equities market is experiencing explosive growth, with trading volume surging to $963.04 million as of January 2026. This represents a staggering 2,878% year-over-year increase, with the market itself growing 27% over the past month alone. This rapid expansion is being led by Ondo Global Markets, which has recorded over $7 billion in trading volume since its September 2025 launch.

This platform-level activity is a key driver of broader protocol growth. The Ondo Finance RWA protocol has now reached a record $2.52 billion in total value locked (TVL), a 31% monthly increase. This figure includes over $500 million in tokenized stocks, which accounts for half of the entire market's value. The surge in capital deployment is clear, with the protocol's TVL climbing over 404% from the previous year.

Yet the flow metrics tell a complex story. While trading volume and TVL are skyrocketing, the price action of the ONDO token tells a different tale. Despite the record network activity, the native token has seen steady selling pressure, declining 4.4% over the past week and 12.9% over the past month. This divergence suggests that the massive capital inflow is funding platform operations and asset trading, but is not yet translating into strong demand for the token itself.

The Infrastructure Catalyst: 24/7 Trading and Regulatory Clarity

The next major inflection point for tokenized stocks hinges on infrastructure. The New York Stock Exchange and its parent company, Intercontinental Exchange, are developing a blockchain-based platform for 24/7 trading of tokenized US equities and ETFs. This move, pending regulatory approval, aims to offer instant settlement and stablecoin-based funding. While the promise of endless trading hours is clear, the real catalyst is the institutional-grade settlement layer it would provide, solving a core friction in traditional markets.

Regulatory clarity is accelerating this institutional entry. The SEC's closure of its investigation into Ondo Finance without charges is a critical green light. This removes a key overhang and directly supports the platform's expansion into the European Economic Area. As noted, regulatory clarity in December 2025 has accelerated institutional entry, creating a favorable environment for platforms like Ondo to scale.

The long-term opportunity is massive. The broader assets tokenization market is projected to grow at a 40.1% compound annual growth rate, reaching $7.8 trillion by 2030. Tokenized stocks represent a significant portion of this, with analysts projecting the market could reach $150+ billion by 2030. The NYSE's 24/7 platform, if approved, would directly tap into this explosive growth by making tokenized equities a core part of global on-chain market infrastructure.

The Adoption Hurdle: Bridging Flow and Token Price

The core risk for Ondo Finance investors is a stark disconnect between platform growth and token performance. Despite record network activity, the ONDO token has been under severe pressure. Over the past 24 hours, it fell roughly 7.3% to $0.3073, significantly underperforming the broader crypto market's 1.48% decline. This weakness is not a fleeting event but a sustained trend, with the token down 7.2% over the past week.

A major source of this bearish pressure is a recent token unlock. On January 18, approximately 1.94 billion ONDO tokens were released into circulation. This sudden increase in supply has created a clear overhang, with early investors and team members likely liquidating holdings. Even more than a week later, the market appears to be digesting this event, with exchange inflows and cautious on-chain behavior indicating a lack of immediate demand. The synthesis is clear: explosive growth in DeFi TVL and trading volume does not automatically translate to sustained demand for the native token. Ondo's protocol TVL recently hit an all-time high of $2.698 billion, driven by strong adoption of its tokenized Treasury and stock products. Yet this fundamental strength is being overshadowed by short-term price mechanics. The divergence between record network activity and steady token selling pressure is the central vulnerability. For the token to re-rate, the market must shift from viewing ONDO as a utility token funding a growing platform to seeing it as a scarce, demand-driven asset-a transition that requires more than just infrastructure and regulatory green lights.