RWA Tokenization Firm Ondo Finance Faces Token Unlock Risk, But Its Crypto Price Eyes a Rebound

Ondo crypto price had a strong performance in 2024 as its token surged by more than 1,000% and total assets in the ecosystem soared to over $600 million.

Ondo (CRYPTO: ONDO) price had a strong performance in 2024 as its token surged by more than 1,000% and total assets in the ecosystem soared to over $600 million. The token was trading at $1.45 on Thursday, down by 32% from its highest level in 2024.

Ondo Finance token unlock ahead

Ondo's crypto token, which has a market cap of over $2 billion, faces a big risk later this month as the network unlocks 2.57 billion tokens. At the current price, these tokens will have a market price of over $2.8 billion, representing 133% of the float.

The allocations will go to the developers, ecosystem, and private sales. Some of the potential recipients for these tokens are companies like Founders Fund, Coinbase, and Pantera that have backed the project.

Ondo's token unlock is part of its annual strategy to release tokens. The remaining tokens will be released in the next three years. Token unlocks are often seen as being negative for a crypto project because it dilutes existing holders.

Ondo is a top player in the tokenization industry

Ondo Finance has become one of the top players in the Real World Asset (RWA) tokenization industry. It does that by providing to solutions: US Dollar Yield (USDY) and US Treasuries (OUSG), which award holders 4.35% and 4.2% rewards. The developers believe that these assets are better than popular stablecoins like Tether and USD Coin, which don't provide a return.

Ondo has benefited from the recent hawkish shift by the Federal Reserve. In its interest rate decision, the bank decided to slash rates by 0.25% and changed its tune on the number of cuts to expect in 2025. It now expects to deliver just two cuts, which has helped to push all bond yields higher.

Ondo benefits from higher yields because its stablecoins generate yields by indirectly investing in treasuries.

Meanwhile, the developers have continued to expand Ondo's network. They recently announced an expansion to Plume Network, a modular layer-1 network that is purpose-built for RWA finance. Plume will integrate USDY, enabling more utility for the tokenized treasuries product.

Ondo crypto price analysis

The daily chart points to a potential rebound despite the upcoming token unlock. Like many altcoins, it has formed a cup and handle pattern on the daily chart. Also, it has created a falling wedge pattern, a popular bullish reversal sign. This pattern has also helped to form a break and retest sign.

Therefore, Ondo crypto will likely have a strong bullish breakout, with the initial point to watch being the resistance point at $2. This price coincides with the strong pivot reverse point of the Murrey Math Lines.