ONDO has increased over 70 times this year; what is the outlook for its future?

2024-12-16, 06:58

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Ondo Finance is a decentralized institutional-grade financial protocol focused on leveraging blockchain technology to provide institutional-level financial products and services, creating an open, permissionless, and decentralized investment bank. Currently, Ondo Finance offers two core products: USDY short-term U.S. Treasury RWA (for retail investors) and OUSG short-term U.S. Treasury RWA (for qualified investors). Ondo's main business is to introduce low/zero-risk, stable-yield, scalable fund products (such as U.S. Treasuries and money market funds) onto the blockchain, providing on-chain investors with an alternative to stablecoins while enabling holders, rather than issuers, to earn most of the yields from the underlying assets.
![](https://gimg2.gateimg.com/image/article/1734332436screenshot-20241216-145638.png)
Ondo Finance was founded in 2021, initially focusing on the DeFi sector. In the second half of 2021, Ondo launched Liquidity-as-a-Service (LaaS) to help token issuers enhance liquidity on decentralized exchanges. It paired DAOs with underwriters (stablecoin issuers) to guide high liquidity AMM trading pairs.
In May 2022, Ondo completed its ICO financing on the CoinList platform, selling 3 million ONDO tokens at $0.03 with a one-year lock-up, followed by linear release over 18 months; and selling 17 million ONDO tokens at $0.055 with a one-year lock-up, followed by linear release over 6 months. This round raised $10.25 million, with a price of 1 ONDO = $0.055 for most public investors.
As DeFi yields compressed in 2022, the Ondo team decided in early 2023 to phase out Vaults and LaaS (collectively known as "Ondo V1") and focus on developing the next-generation protocol. Ondo V2 was launched with Ondo Funds and <a  rel="nofollow noopener noreferrer"  href="/price/flux-flux" target="_blank" class="blog_inner_link">Flux</a> Finance, and Ondo redefined its positioning as "building next-generation financial infrastructure to enhance market efficiency, transparency, and accessibility," subsequently launching the USDY and OUSG tokenized financial products and transforming into a player in the RWA sector.
According to market data from Gate.io, ONDO is currently priced at $2.09, with a 24-hour increase of 14%. Since its listing on Gate.io earlier this year, ONDO has seen a price increase of over 70 times. The total issuance of ONDO is 10 billion tokens, with a circulating supply of 1.38 billion tokens and a circulating market cap of $2.9 billion, while the fully diluted valuation (FDV) stands at $20.9 billion.
![](https://gimg2.gateimg.com/image/article/1734332422ondo.png)
## ONDO Market Analysis
### Trading Data
- Current Price: 2.0808 USDT
- 24-Hour Change: 14.15%
- 24-Hour High: 2.14627 USDT
- 24-Hour Low: 1.77391 USDT
- Circulating Market Cap: 1,033,602,700 USDT
- Circulating Supply: 1,389,759,838 ONDO
- Fund Inflow: 200,473,555 USDT
- Fund Outflow: 183,355,719 USDT
- Net Inflow: 17,117,836 USDT
- Market Sentiment: Extreme Greed (Fear and Greed Index at 83)
- Support Level: 1.7651 USDT
- Resistance Level: 2.2166 USDT
## Trading Strategy Suggestions
### Short-Term Long Strategy
  - Direction: Long
  - Entry Price: 2.0808 USDT
  - Stop-Loss Price: 1.7651 USDT (Support Level)
  - Target Price: 2.2166 USDT (Resistance Level)
  - Rationale and Features: The current market sentiment is extreme greed, indicating strong investor expectations for price increases. The inflow of funds exceeds outflow, reflecting market buying interest. Entering at the current price with a stop-loss at the support level to manage risk and setting the target at the resistance level to secure profits.
### Short-Term Short Strategy (Reversal Strategy)
  - Direction: Short
  - Entry Price: 2.14627 USDT (24-Hour High)
  - Stop-Loss Price: 2.2166 USDT (Resistance Level)
  - Target Price: 1.82286 USDT (Previous 24-Hour Price)
  - Rationale and Features: If the price breaks through the resistance level of 2.2166 USDT, a short-term pullback may occur; thus, entering short near the high price is advisable. Setting the stop-loss at the resistance level to prevent losses and targeting the previous 24-hour price to profit during a price correction. This strategy is suitable for short-term traders aiming to profit from market volatility.
## Outlook
Ondo Finance focuses on the RWA sector, with its current main business being the tokenization of high-quality assets such as U.S. Treasuries and money market funds within a compliant framework, enabling investment and trading for blockchain users. The RWA treasury sector is one of the significant narratives in the current market cycle, with Ondo Finance ranking third in TVL in this sector, providing a certain first-mover advantage.
The future growth points for Ondo Finance lie in expanding the scale of existing products and introducing other types of RWA products. Its development goal is to become an essential bridge connecting on-chain and off-chain finance. The main risks faced by Ondo Finance include intense market competition, as the RWA industry is vast and still in its early stages, with many well-funded institutions vying for market share.
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<div>Author: **Icing**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions. Investment involves risks and users need to make careful decisions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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