ONDO Finance [ONDO] has introduced the Ondo Chain, a specialized Layer-1 chain tailored for institutional-grade Real World Assets (RWAs).
The platform aims to address issues encountered by tokenized RWAs, including DeFi compatibility challenges and insufficient network and protocol security measures.
The recent announcement and the positive performance within the RWA sector have injected new optimism among investors. CryptoCrypto conducted an in-depth analysis of on-chain activities to gauge the token’s valuation.
Signs of Elevated Activity and Consistent Growth…
There has been a noticeable uptick in the number of wallets with designated holdings on the provided charts. Typically, an increase in whale addresses suggests whale accumulation, as retail investors may be selling off their holdings.
The overall rise in all investor categories indicates heightened accumulation, demand, and network engagement. This surge signifies a revitalized network growth, serving as a positive indicator for the chain and its investor community.
The daily active addresses metric has exhibited a steady upward trend since the beginning of January, reinforcing the concept of increased on-chain activities. Furthermore, network expansion has also shown a positive trajectory, gauging the number of new addresses created daily on the network.
While transaction volume has remained relatively stable over the last three weeks, the other activity metrics portray a positive outlook.
Social metrics have also shown an upward trend alongside on-chain activities. The Social Volume has been steadily rising since early January, with the Weighted Sentiment remaining predominantly positive over the recent three-week period.
However, there has been a slight decline in Open Interest over the past ten days when compared to the previous month.
This decline can be attributed in part to liquidations resulting from sudden losses on February 3rd and partly due to traders opting to remain on the sidelines following the spike in volatility during February.
Over the last six weeks, ONDO bulls have effectively defended the 61.8% retracement level at $1.8, established from the November rally. Despite signals of substantial capital outflows from the CMF, the price has managed to avoid hitting new lows in the past month.
This resilience indicates the relatively strong performance of Ondo compared to other mid-to-large cap altcoins. Such relative strength may prove advantageous for the bulls in the upcoming weeks.
A consolidation phase has formed within the $1.18 to $1.6 range. Should the demand for ONDO remain steady, this consolidation stage could seamlessly transition into an uptrend once market-wide sentiment stabilizes.
Disclaimer: The information provided is the writer’s opinion and should not be construed as financial, investment, trading, or any other form of advice.