Ondo surges as RWA growth fuels price rally

• Ondo (ONDO) price hovered above $1.00 as bulls looked to break from a downtrend.
• The real-world asset tokenization platform’s traction and milestones in total value locked have aligned with gains.
• Ondo Finance is one of the leading RWA platforms in the market.

With ONDO trading to an intraday high above $1.13 with a 5.8% gain over the past 24 hours, buying pressure may see bulls target a breakout above $1.2 and aim for $2.00.

This outlook and surge coincides with Ondo Finance’s TVL soaring to over $1.5 billion as the RWA market rallies..

Ondo TVL hits $1.5 billion amid RWA traction

The Ondo token jumped to $1.13 on Friday, with gains taking it to its highest level in over a month.

Ondo bulls have rallied 16% in the past week, cutting monthly losses and allowing for a potential technical breakout after breaking its downtrend.

Per DeFiLlama, this has come as Ondo Finance’s TVL rose, and it crossed the $1.5 billion mark to reach highs of $1.57 billion.

The protocol’s accelerating role in the RWA sector has helped this outlook, with Ondo’s tokenized products key to the growth.

Surging demand for Ondo’s flagship products, such as OUSG, a tokenized short-term US Treasury fund, and USDY, a yield-bearing stablecoin, are the main drivers.

Upside for RWA tokens has elevated the market cap for these assets to over $75 billion, while adoption of tokenized assets has pushed RWA onchain value to more than $29 billion.

According to RWA.xyz, Ondo’s OUSG and USDY account for about $1.4 billion, with $729 million and $657 million in the two assets respectively.

Ondo’s TVL achievement and RWA traction aligns with a surge in demand for tokenized asset investment opportunities across Wall Street.

Ondo price targets $2 amid potential technical breakout

The TVL surge has ignited bullish sentiment for ONDO, with analysts eyeing a price target of $2 in the short term.

Having aggressively bounced from recent lows, the breakout to above $1 gives buyers the upper hand.

In this case, further gains will allow them to target Ondo’s all-time high of $2.14 set in December 2024.

However, bulls may first have to navigate initial robust resistance around $1.14.

If this works, a potential rally to above $2  and the target of $2.4 could follow.

Bulls will be helped by the broader market conditions, regulatory shifts and institutional endorsements.

The collaboration with World Liberty Financial and integrations with BlackRock’s BUIDL Fund speak to this possibility.

The ascent to $1.5 billion in TVL aligns with Ondo DeFi’s maturation, including in bridging yield-generating assets with blockchain efficiency. Global potential of RWAs is another likely catalyst for Ondo.