Ondo Finance price staged a strong bullish breakout and reached a record high as inflows continued rising. The $ONDO token soared to a high of $1.1622 on Friday morning, 486% higher than its all-time low, giving it a market cap of over $1.5 billion.
Tokenization gains steam
Ondo Finance has emerged as one of the biggest players in the tokenization industry, which is expected to be worth over trillions in the future.
Backed by Coinbase, Pantera, and Founders Fund, the network helps investors invest in tokenized assets. Its two primary products are the US Dollar Yield (USDY) and US Treasuries, which have over $249 million and $194 million in assets, respectively.
USDY is an asset that is secured by short-term US Treasuries and bank demand deposits while OUSG is invests in Treasury bills. OUSG has invested in the Blackrock USD Institutional Digital Liquidity Fund (BUIDL), bank deposits, and USDC.
This makes these tokens better than traditional stablecoins like Tether and USD Coin, which don’t pay a return. USDY and OUSD yield 5.20% and 4.9%, respectively.
Therefore, the ONDO token is soaring as investors anticipate further demand for the tokens as demand rises. They also believe that it is a good bet as the trends in the tokenization industry do well.
Just recently, DTCC concluded a tokenization pilot program including the likes of Chainlink, Blackrock, State Street, Franklin Templeton, and Mid Atlantic Trust. Blackrock has even launched BUIDL, an asset that offers native US dollar yields to investors while companies like the London Stock Exchange and ANZ are working on their tokenization projects.
Ondo Finance price forecast
The 4H chart shows that the ONDO token price has been in a strong bullish trend in the past few weeks. It then jumped above the crucial resistance at $1.0415, its highest swing on May 18th and March 31st.
The token has also moved above the ascending trendline that connects the lowest swings since April 12th. Further, the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have all moved upwards, pointing to more momentum.
Therefore, Ondo Finance token will likely continue rising as buyers target the crucial resistance level at $2.0. This view will be confirmed if it rises above this week’s high of $1.1622. It will also happen if conditions in the market are supportive. Conversely, a drop below the support at $1.04 will invalidate the bullish run.
