Ondo Finance is a blockchain-based platform that focuses on providing institutional financial services. It has been under fire following the recent market drop.
This is the native token. Ondo Finance [ONDO]In the past 24 hours,’s stock price has fallen by 10%.
The market continues to be supported by investor activity, despite recent declines. ONDO’s market capitalization is $1.27 billion and its number of holders has reached an all-time record of 174.360.
Why ONDO fell
A sharp outflow of liquid from the derivatives marketplace appears to be responsible for much of the recent drop.
The circulating balance was reduced to approximately $110 million by capital withdrawals in the last 24 hours. Capital outflows totaled approximately $11 million with liquidations accounting for nearly $1 million.
CoinGlass
Large price drops accompanied with a high trading volume are often signs of high momentum selling. CoinGlass reports that the trading volume for ONDO increased 46%, to $204 millions.
Investors are active despite the current bearish sentiment.
The on-chain liquidities continue to increase
The inflow of funds into on-chain continued. Ondo Finance’s total value locked in has reached a new high, $1.926billion on the 15th.
An increase in TVL usually signals a new capital injection from investors with a long-term perspective. The trend showed that participants continued to commit funds to the protocol, despite recent weakness in prices.
Source: DeFiLlama
In simple words, they deposit ONDO for a yield via liquidity pools. They also position themselves to benefit from future price appreciation. They can benefit both from the yield and future price increases.
Selon DeFiLlama the protocol has generated 2,24,000,000 in fees just for December.
The rising fees are often due to increased usage of the platform, which signals a growing demand for ONDO.
ONDO may benefit from the current market conditions if on-chain activities continue to grow at the same pace. This could support a possible price recovery.
Binance Investors step up
The Binance market is also showing signs of renewed interest. This could be a sign that the price may recover.
CoinGlass data shows notable capital inflows on Binance, reflected in rising derivatives trading volume for ONDO.
The market is showing signs of improvement with the increase in net volume and Binance’s second-largest open interest for ONDO derivatives, at $22.23million.
CoinGlass
A bullish trend is evident in the derivatives market as well, whereby funding rate has risen from 0.0044% to 0,0044%. It indicates a greater demand for positions in the long term and the continued inflow of capital.
ONDO has a good chance of recovering if the current trend is maintained.
Last Thoughts
- Data off-chain shows ONDO recorded an important liquidity outflow from the derivatives markets of $11million.
- However, on-chain data shows that liquidity is increasing, as TVL has reached a record high of $1.926 Billion.
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Source: ambcrypto.com
