After a strong rally, the market cap of Ondo Finance’s native token (ONDO) has surpassed $3 billion. The rally followed a recent meeting between the project’s executives and the US Securities and Exchange Commission, US SEC.
Current on-chain data shows that the token’s market cap is $3.16 billion, the first time it has crossed this level since March 8. At the time of writing, Ondo Finance is up 13.04% in the last 24 hours and trades at $0.9999, even though it traded above $1 earlier today.
SEC Meeting: Ondo Finance Sees Surge in Trading Volume and Market Activity
In addition, its 24-hour trading volume has increased by nearly 171% to over $556 million, indicating growing investor interest in the network. The high volume-to-market cap ratio of 17.39% also suggests massive liquidity and active trading and can result in sharper price movements.
A factor traders watch for sustainability is the market cap/total value locked (TVL) ratio. For Ondo Finance, this ratio is currently 3.14, indicating that the token’s valuation is currently higher than its locked assets.
The token’s price gains followed an SEC memo indicating that the project’s executives held a discussion with the US SEC regarding the tokenization of financial assets in the United States.
The memo revealed that the company’s leaders and Davis Polk & Wardwell (their legal representatives) attended the meeting. One of the key things they discussed was the application of traditional finance regulations to tokenized securities.
Other matters discussed in the meeting include market supervision, legal registration, and broker-dealer rules. The project leaders proposed some relaxations of the existing rules or the use of regulatory sandbox resources to promote innovations while ensuring that investors are well protected.
Technical Indicators for Ondo Finance Show Bullish Momentum
According to data from TradingView, ONDO’s price has maintained a consistent upward movement, climbing from a low of about $0.8 in the middle of this month to about $1. This is a significant percentage gain in less than 12 days, suggesting strong buying interest in the token.
The daily chart for ONDO’s price confirms a bullish trend. The MACD line is above the signal line, and both are in the positive region, suggesting a sign of bullishness. ONDO’s relative strength index (RSI) of 64 indicates healthy buying momentum, and it’s not in the overbought region yet.
While broader cryptocurrency market trends may affect altcoins such as ONDO, the chart indicates that the traders are optimistic about the token’s upward trend in the immediate future. A consistent break above the $1 mark can lead to a long-term rally, and a break below it will cause the coin to bottom at around the $0.94 mark.
Altcoins Rapidly Losing Value vs. Bitcoin – Study
Meanwhile, a new study by a bitcoin financial services company, Swan, has shown that most altcoins are experiencing a decline when compared to Bitcoin (BTC). The study proves that BTC remains the more stable asset for capital preservation in a fluctuating crypto market.
A detailed breakdown of Swan’s study showed that the firm compared the performance of the top 300 altcoins with BTC over the past five years. Its focus was on the time it takes for these altcoins to drop 90% of their price compared to BTC after they’ve hit their all-time highs (ATH).
Swan discovered that it took an average of 10 to 20 months for these altcoins to lose this amount of their value. Swan’s analysis showed that BitGert (BRISE), Terra (LUNA), and Ontology Gas (ONG) hit the 90% drawdown level in less than 60 days, the fastest among all other altcoins.
The study also revealed that Cardano (ADA) and XRP lost 90% of their value after hitting all-time highs in 36 months. However, Monero (XMR) took six years to record a 90% drawdown from its ATH, the longest time among the altcoins.
Swan stated that one of the reasons for these altcoins’ fast decline in value compared to BTC is that they failed to deliver value consistently over time.
