ONDO, a popular cryptocurrency in the Real-world Asset (RWA) tokenization industry, dropped for three straight days even as its ecosystem continued doing well. It retreated to the 50-day moving average of $0.7328, down from this week’s high of $0.8357. It has also dropped by 51% from its highest level this year.
A report by Artemis showed that Ondo Finance’s USDY stablecoin was the fastest-growing stablecoin in the third quarter. It had a 118% growth rate, much higher than PayPal’s PYUSD stablecoin, which rose by 79%. The other top performers were IDRT, UXP, and EURC, which grew by over 61%.
More data by DeFi Llama shows that the Ondo Finance ecosystem was doing well, with the total value locked (TVL) soaring to a record high of $640 million. Most of this growth is in the US Dollar Yield (USDY), which has accumulated over $444 million in assets. US Treasuries (OUSG) has gained over $205 million in assets.
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Crypto investors believe that USDY and OUSG are better than traditional stablecoins like Tether and USD Coin because they offer rewards. USDY’s annual yield on Oct. 23 was 5.05%, while OUSG had 4.97%. They generate these rewards by investing their funds in yield-generating assets like bank deposits and short-term Treasuries.
USDY’s and OUSG’s assets have likely jumped because of the rising US Treasury yields, with the 10-year, 5-year, and 2-year rising to the highest point in over three months. This price action is because of the rising odds that the Federal Reserve will not be aggressive when cutting interest rates.
ONDO crypto forecast
Ondo chart by TradingView
The 4H chart shows that the ONDO token has been in a strong downward trend in the past few days. It has dropped below the important support at $0.7691, its highest swing on October 7.
The token has also moved below the ascending trendline shown in blue. Also, it has moved below the 50-period moving average, meaning that bears are in control. The MACD has moved below the zero line, while the Relative Strength Index (RSI) is nearing the oversold level.
Therefore, the Ondo crypto token will likely continue falling as sellers target the psychological point of $0.70.
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