Ondo surges as risk-weighted asset growth drives price increase.

The price of Ondo (ONDO) has recently surpassed the $1.00 mark as bullish traders attempt to break free from a downward trend. With the rise in demand for real-world asset tokenization and increasing total value locked (TVL), ONDO has seen significant gains. Currently trading above $1.13, with a 5.8% increase in the last 24 hours, ONDO bulls are now eyeing a breakout above $1.20, potentially aiming for $2.00.

Ondo’s TVL Reaches $1.5 Billion Amidst Surge in Risk-Weighted Assets

On Friday, the Ondo token surged to $1.13, marking the highest price in over a month. The asset’s bulls have gained 16% over the past week, reducing monthly losses and potentially signaling a technical breakout after breaking its prior downtrend.

According to DeFiLlama, this rally coincides with Ondo Finance’s TVL climbing past $1.5 billion, peaking at $1.57 billion. The protocol’s accelerated role in the real-world asset (RWA) sector has been pivotal in this context, as Ondo’s tokenized products are crucial for growth.

The rising demand for Ondo’s flagship products—namely OUSG, a tokenized short-term U.S. Treasury fund, and USDY, a yield-bearing stablecoin—has driven this momentum. The overall market capitalization of RWA tokens has surpassed $75 billion, with tokenized asset values exceeding $29 billion on-chain.

As reported by RWA.xyz, Ondo’s OUSG and USDY combined represent around $1.4 billion, with $729 million and $657 million in each asset, respectively. The realization of Ondo’s TVL and traction in RWAs aligns with an increased demand for investment opportunities in tokenized assets on Wall Street.

Ondo Price Aiming for $2 Amid Potential Technical Breakout

The surge in TVL has sparked bullish sentiment for ONDO, with analysts eyeing a short-term price target of $2. Following a robust rebound from recent lows, the breakout above $1 has given buyers an advantage.

If this trend continues, further gains may allow traders to target Ondo’s all-time high of $2.14 set in December 2024.

However, bulls may first need to navigate initial strong resistance around $1.14. If successful, a rally above $2 and an eventual target of $2.40 may follow. Overall market conditions, regulatory changes, and institutional approvals will help bolster this potential.

Collaborations such as those with World Liberty Financial and integrations with BlackRock’s BUIDL fund reflect these possibilities. The $1.5 billion surge in TVL coincides with the maturation of Ondo DeFi, enhancing the connection between yield-generating assets and blockchain efficiency. The global potential of risk-weighted assets remains another likely catalyst for Ondo.