Ondo Finance [ONDO] has taken a significant step in the Real-World Asset (RWA) sector by announcing the launch of Ondo Chain, a purpose-built Layer-1 blockchain designed to enhance institutional-grade RWAs. This development aims to tackle pressing challenges in the RWA space, including DeFi incompatibility and security vulnerabilities in network and protocol safety.
1/ Today, we’re thrilled to announce Ondo Chain, our new Layer 1 blockchain purpose-built for institutional-grade RWAs.
— Ondo Finance (@OndoFinance) February 6, 2025
Design advisors for the chain include new members of the Ondo Ecosystem: Franklin Templeton, Wellington Management, WisdomTree, Google Cloud, ABN Amro, Aon,… pic.twitter.com/a35GHB7OFW
Rising On-Chain Activity Signals Growth
The announcement has fueled optimism in the crypto community, aligning with a broader bullish trend in the RWA sector. On-chain data suggests that ONDO may still be undervalued, as wallet activity has shown steady growth. The number of whale addresses holding significant amounts of ONDO has increased, indicating strong accumulation. Meanwhile, retail investors have been offloading their holdings, a trend often associated with early-stage institutional interest.
Daily active addresses have been on an upward trajectory since early January, reinforcing the notion of heightened on-chain activity. Network growth, which tracks the number of new addresses created daily, has also risen, reflecting increasing adoption. While transaction volume has remained steady over the past three weeks, the overall engagement metrics suggest sustained investor interest.
Social Sentiment and Market Trends
Social metrics have mirrored the on-chain data, with Social Volume rising consistently since the beginning of the year. Weighted Sentiment has largely remained positive over the past three weeks, highlighting the community’s growing confidence in ONDO’s future.
However, Open Interest has dipped slightly over the last ten days. This decline is partly attributed to liquidations following sharp market losses on February 3 and traders adopting a wait-and-see approach amid February’s heightened volatility.
Technical Analysis: Key Support and Resistance Levels
Despite market turbulence, ONDO bulls have successfully defended the critical 61.8% Fibonacci retracement level at $1.8, a strong indication of resilience. Although the Chaikin Money Flow (CMF) signaled capital outflows, ONDO has managed to hold its ground without setting new lows, showcasing relative strength compared to other mid-to-large-cap altcoins.
Currently, ONDO is consolidating within the $1.18 to $1.6 range. If buying pressure remains consistent and broader market sentiment improves, this consolidation phase could evolve into an uptrend, positioning ONDO for further gains in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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