ONDO, a popular cryptocurrency in the Real World Asset (RWA) tokenization industry, fell for the third day in a row despite continued strength in its ecosystem. It has retreated from this week’s high of US$0.8357 to the 50-day moving average of US$0.7328. It has fallen 51% from this year’s highest level.
Ondo Finance’s USDY stablecoin was the fastest growing stablecoin in the third quarter, according to a report by Artemis. The growth rate was 118%, much higher than 79% for PayPal’s PYUSD stablecoin. Other top performers were IDRT, UXP, and EURC, which increased by more than 61%.
Guess whose wealth grew the fastest in Q3 2024? @artemis__xyz the study?
Ondo USDY is the fastest growing asset quarter-on-quarter compared to major stablecoins, with total supply increasing by almost 120%.
At Ondo, we believe that yield belongs to the investor. Demand is expected… pic.twitter.com/00mYrAD2LT
— Ondo Finance (@OndoFinance) October 23, 2024
Further data from DeFi Llama shows that the Ondo Finance ecosystem is doing well, with total value locked (TVL) surging to an all-time high of $640 million. Most of this growth was driven by U.S. Dollar Yield (USDY), which has amassed more than $444 million in assets. United States Treasury Bonds (OUSG) 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. As of October 23, USDY’s annual yield was 5.05% and OUSG’s was 4.97%. They generate these rewards by investing money in yield-producing assets such as bank deposits and short-term government bonds.
Assets in USDY and OUSG appear to have soared due to rising US bond yields, with 10-year, 5-year, and 2-year Treasuries rising to their highest levels in more than three months. This price movement is due to the increasing possibility that the Federal Reserve will not be aggressive in cutting interest rates.
ONDO Cryptocurrency Prediction
Ondo Chart by TradingView
The 4H chart shows that the ONDO token has been in a strong downtrend for the past few days. It remains below the October 7th maximum of USD 0.7691, which is an important support level.
The token has also moved below the uptrend line shown in blue. It is also below the 50-period moving average, meaning the bears are in control. The MACD is below the zero line, while the Relative Strength Index (RSI) is approaching oversold levels.
Therefore, Ondo crypto token is likely to continue falling as sellers target the psychological point of $0.70.
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