Altcoin
ONDO hits record high after 40% surge: Should you buy it today?
The BlackRock USD Institutional Digital Liquidity fund may put ONDO in the spotlight.
- ONDO rallied, hit $0.76 as the market cap climbed into the top 100.
- Over 3000 participants added the token in the last 20 days, indicating increasing interest.
Ondo [ONDO], the native token of securities tokenization project Ondo Finance, became the 94th most valuable project in terms of market cap. At press time, the market cap of ONDO was $1.05 billion.
Market cap is the product of price and circulating supply. For ONDO, its circulation supply was $1.38 billion out of the total 10 billion. While the circulating supply has not changed, the price of the token climbed and changed hands at $0.76.
This value represented a 31.46% increase in the last 24 hours. However, ONDO did not jump into the top 100 without cause as AMBCrypto found.
Source: CoinMarketCap
The tokenization narrative helps the price
According to our findings, leading investment company BlackRock was a major factor in the price increase. On the 20th of March, Wall Street Journal (WSJ) reported that BlackRock had committed another round of capital to launch a tokenized money market fund.
Details from the report showed that the fund would be dedicated to token securities projects built on Ethereum [ETH]. The company also termed it the BlackRock USD Institutional Digital Liquidity (BUIDL) fund.
Regarding the development, Robert Mitchnick, BlackRock’s Head of Digital Assets said,
“Tokenization remains a key focus of BlackRock’s digital asset strategy. Through the tokenization of the Fund, BUIDL will offer investors important benefits by enabling the issuance and trading of ownership on a blockchain.”
You might be wondering how ONDO is involved in all of these. Well, the truth is that the project does not only have securities tokenization fundamentals. But it is also built on Ethereum.
Besides that, BlackRock’s tokenization plans mean that crypto projects focused on Real World Assets (RWAs) might gain from the development.
More holders join the Ondo train
Furthermore, AMBCrypto checked
if any other change happened with ONDO using on-chain data. According to data from Santiment, Ondo’s Social Dominance spiked to 0.869% on the 20th of March.Though the metric had decreased to 0.352, the hike implied that the project was one of the talk of the town. Going forward, there is a chance that discussion around ONDO might start to compete with other assets in the top 100.
Another notable improvement in the Ondo network was its amount of holders. On the 1st of March, the total amount of ONDO holders was 5151. At press time, that number has increased to 8245.
This 3000+ addition was proof that ONDO’s price increase was not artificial. Instead, demand for the token has been increasing.
Source: Santiment
How much are 1,10,100 ONDOs worth today?
Moving on, the value of ONDO might see more gains. But that would depend on the demand for tokenized securities on the blockchain.
Should demand increase when altcoin prices begin to surge, ONDO’s price might become one of the best performers. At the same time, a decrease in value might also happen in the short term.
