Altcoins in the cryptocurrency world occasionally grab attention with their price increases. Today, one altcoin, Ondo Finance, saw significant gains, leading investors to question the factors behind this surge. We conducted an investigation to uncover the dynamics driving this increase. Here are our findings.
ONDO Price Surges Amid Decreasing Supply on Exchanges
On Saturday, the DeFi token ONDO experienced a 7% increase in value, sparking discussions on various social media platforms. Crypto intelligence tracker, Santiment, helps identify assets that are gaining interest among investors by monitoring the social dominance metric. This surge in the price of the DeFi token was triggered by a major wallet investor who withdrew Ethereum assets on Friday and purchased ONDO. This move attracted attention and further fueled the price increase.
ONDO Gains Popularity with Demand for Risk-Free Fixed-Income Loans
The cryptocurrency ONDO has been gaining popularity among investors due to the growing demand for risk-free fixed-income loans backed by yield-generating cryptocurrencies. According to Santiment, the social media discussion rate of the DeFi token ONDO reached its highest level in 2024. This indicates a rising interest and confidence in the token’s potential.
Exchange Supply of ONDO Reaches Lowest Level
One of the key metrics to gauge the selling pressure on an asset is the exchange supply. In the case of ONDO, its exchange supply is currently at its lowest level in 2024. This suggests that there is less selling pressure on the token, making it less likely for investors to sell their tokens for profit and potentially negatively impact prices. The consistent decrease in ONDO’s exchange supply throughout 2024 is a positive sign for its price stability.
A Whale Investor Makes a Bold Move
According to data from crypto intelligence tracker Lookonchain, an investor withdrew approximately $6 million worth of Ethereum from an exchange on Friday and used it to purchase ONDO. This investor, often referred to as a “whale,” is believed to be preparing for a rally in ONDO’s price. Lookonchain’s statement supports this assumption.
As of now, the cryptocurrency ONDO is trading at $1.016 on Binance, reflecting a 7% increase within the day.
Disclaimer: Please note that the information provided in this article is not intended as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and conduct their own thorough research.
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