Real-world assets (RWAs) are emerging as a prominent sector in the cryptocurrency space. These are essentially traditional financial assets, like Treasury bills, that have been digitized to interact with decentralized finance (DeFi) protocols. The recent surge in ONDO price is attributed to the successful completion of a fund data tokenization pilot conducted by the Depository Trust & Clearing Corporation (DTCC) and Chainlink in partnership with major U.S. banks. This has led to an increase in demand from whales who are anticipating further price hikes.
DTCC-Chainlink Pilot Collaboration
The Depository Trust and Clearing Corporation (DTCC), the largest settlement system globally, along with blockchain oracle Chainlink, have successfully concluded a pilot program with several major U.S. banks to enhance the tokenization of traditional financial funds. A report by DTCC on May 16 highlighted the Smart NAV Pilot program, which aimed to standardize the provision of net asset value (NAV) data for funds across various blockchains using Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
The price of #RWA token $ONDO surged by approximately 10% following the completion of the fund data tokenization pilot by DTCC and #Chainlink with U.S. banks!
Within the last 17 hours, a new whale, identified as 0x803, withdrew 957 $ETH from #Gemini and exchanged 796.3 $ETH (equivalent to $2.38 million) for 2.64 million $ONDO at around $0.902 per token! The purchasing activity in $ONDO is… pic.twitter.com/PP8FNUmPWC – Spot On Chain (@spotonchain) May 17, 2024
The report stated, “The pilot demonstrated that by providing structured data on-chain and establishing standard roles and processes, foundational data could be integrated into various on-chain applications, including tokenized funds and ‘bulk consumer’ smart contracts, which manage data for multiple funds.”
Following this development, RWA tokens like ONDO experienced a significant surge, with over an 11% increase in the past 24 hours. The news of the pilot program also sparked excitement among investors, as evidenced by the notable whale activity in the last 17 hours. A new whale, using the address 0x803, made a substantial move by withdrawing 957 ETH from the Gemini exchange and swapping it for 2.64 million ONDO tokens at an average price of $0.902 per token.
Whale activities during price surges often indicate confidence in a token’s potential, and this significant ONDO purchase has further fueled the bullish sentiment surrounding ONDO.
The DTCC report comes at a time of growing interest in real-world asset tokenization among major traditional financial institutions. In March, BlackRock introduced a tokenized money market fund called BUIDL on the Ethereum network, offering yields in U.S. dollars. This fund allows investors to acquire tokens representing shares in the fund, which invests in assets like U.S. Treasury bills. Known as the “digital liquidity fund,” it operates as an ERC-20 token named BUIDL on the Ethereum blockchain.
What Lies Ahead for ONDO Price?
Despite ONDO price attempting to break through the resistance at $1, it is facing strong opposition from bears. While the price has surged above EMA trend lines in the last 24 hours, bears may soon cool down the fervor. Currently, ONDO price is trading at $0.94, reflecting an 8% increase from the previous day.
A positive note for bears is the ability to maintain the price around $0.9, increasing the likelihood of an immediate correction. If successful, the ONDO/USDT pair could test the next support at $0.63.
The key support to watch on the downside is the moving averages. A breach and close below this support could signal a consolidation between $0.41 and $0.63 for a few days.
Both moving averages are trending upwards, with the RSI near the overbought zone on the 4-hour chart at level 77, indicating an advantage for bulls. Buyers will aim to solidify their position by pushing the price above $1.
On the other hand, bears will aim to push the price below the 20-EMA to defend the overhead resistance aggressively, potentially leading the pair to drop to the 50-SMA.
Tags: DeFi, LINK