Ethereum ETF Launch Propels ONDO (ONDO) Up 13%: Key Drivers and Future Outlook

  • ONDO experienced significant trading activity as metrics suggest a further price increase in the short term.
  • The TVL of the protocol also jumped, suggesting reinforced trust for the project.
  • Immediately after the U.S. SEC announced that it had approved eight Ethereum [ETH] spot ETFs, Ondo’s [ONDO] price rallied. Before the approval, the price of the token was $0.92.

Discover the recent surge in ONDO’s price following the approval of Ethereum spot ETFs and what it means for the future of the token.

ONDO and ETH: A Strengthening Connection

Immediately after the U.S. SEC announced that it had approved eight Ethereum [ETH] spot ETFs, Ondo’s [ONDO] price rallied. Before the approval, the price of the token was $0.92. However, ONDO’s price has increased by 13.26% in the last 24 hours with the token crossing the $1 psychological area. Well, you might be wondering what connection Ondo has with Ethereum such that the impact of the development was intense.

AMBCrypto would explain. In previous articles, we mentioned how ONDO could be a big beneficiary of the buzzing tokenization of Real World Assets (RWAs) despite decoupling from ETH at one point.

Is ONDO and ETH now a couple?

But besides that, Ondo Finance, the team behind the project, recently moved its assets to BlackRock’s BUIDL tokenization fund. For context, this fund operates on the Ethereum blockchain.

Like Ondo’s offerings, BUIDL allows users to earn yields on their U.S. dollar holdings. Hence, this indirectly makes ONDO which is not an Ethereum L2, a beta of the blockchain.

Interestingly, it seemed some market participants had anticipated the move. Six days ago, on-chain data showed that a trader changed 1,870 ETH for ONDO at an average price of $0.95.

Also, another participant who purchased the token in February still holds the cryptocurrency despite a 288% unrealized profit. An action like this suggests that the token’s price could extend higher than $1.08 in the future.

Furthermore, AMBCrypto looked at ONDO’s volume. At press time, data from Santiment showed that the metric hit a monthly high of $449.50 million.

The increase in volume was proof of rising interest in the token. When placed alongside the price action, the jump suggests that the value of ONDO might rise higher in the short term.

Why the price may be set to hit $2

If this is the case, it could trade at $1.20 soon. However, if the volume falls while the price rises, ONDO’s uptrend could become weak. As such, a decline below the $1 mark could be next especially if profit-taking gets intense.

For the long-term potential, the Total Value Locked (TVL) might play an important role. TVL shows the dollar value of assets locked or staked in the project.

With this metric, one can measure how healthy the protocol is. If the TVL increases, it means liquidity added to the protocol is impressive, indicating a good level of health.

Meanwhile, a decline indicated otherwise. According to DeFiLlama, Ondo Finance’s TVL has increased exponentially and was $438.42 million as of this writing.

This increase suggests that market participants found the project trustworthy, with high expectations of a good yield. Going by the recent increase, the metric could hit $1 billion in a few months.

Should this be the case, ONDO’s price might also benefit, and a rise to $2 to $4 could be possible.

An assessment of the project’s official website showed that it offers a 5.20% yearly yield on U.S. dollar deposits and 4.96% on U.S treasuries.

Conclusion

In summary, the recent approval of Ethereum spot ETFs has significantly impacted ONDO’s price, reflecting a strengthened connection between the two. The increased trading volume and TVL suggest a positive outlook for ONDO, with potential for further price appreciation. Investors should keep an eye on the volume and TVL metrics to gauge the token’s future performance.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin’s Next Parabolic Surge: Analyst Predicts BTC to Hit $240K by May 2025

As the cryptocurrency market continues to draw...

Dogecoin (DOGE) Price Prediction: Analyst Foresees ‘God Candle’ Rally to $7.5

Insights into the future trajectory of Dogecoin...

Bitcoin Market Steady at $65,000 Despite Economic Concerns and Tether Decline

The Bitcoin market is currently showing stability,...

SEC May Skip Ripple Appeal to Avoid Risky Precedent, Says Former Cyber Unit Head

The Securities and Exchange Commission...
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Bitcoin Price Analysis: Bears Dominate as BTC Slides, Hedge Funds Reduce Exposure

Bitcoin prices are experiencing a decline, drifting...

Floki ($FLOKI) Poised for Strong Gains in 2024: An In-Depth Analysis

Cryptocurrency investors are continuously searching for lucrative...

Ethereum Price Analysis: ETH Eyes Break Above $3,650 for Potential Surge to $4,000

Ethereum's price saw notable oscillations...
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Bitcoin’s Next Parabolic Surge: Analyst Predicts BTC to Hit $240K by May 2025

As the cryptocurrency market continues to draw interest, Bitcoin (BTC) appears poised for a significant upward trajectory. Macro analyst Julien Bittel...

Dogecoin (DOGE) Price Prediction: Analyst Foresees ‘God Candle’ Rally to $7.5

Insights into the future trajectory of Dogecoin (DOGE) have been provided by crypto analyst Trader Tardigrade. The analyst forecasts an imminent...

Bitcoin Market Steady at $65,000 Despite Economic Concerns and Tether Decline

The Bitcoin market is currently showing stability, with BTC prices hovering above $65,000, only dipping by 0.03%. Despite the stable market...