Ondo Finance’s recent sell-off looks more like a temporary wobble than a structural problem, as on-chain activity and institutional flows keep the protocol well-supported. What happened - ONDO plunged about 10% in the past 24 hours amid a broader market pullback, but key metrics point to ongoing investor interest. Market cap sits near $1.27 billion and the number of token holders has climbed to a new high of 174,360. - CoinGlass data shows the pullback was driven mainly by sharp liquidity outflows in the derivatives market. Capital withdrawals over the last day trimmed the circulating balance to roughly $110 million, with total outflows of about $11 million and nearly $1 million coming from liquidations. Trading and derivatives picture - Sharp price drops with rising volume often signal momentum selling — ONDO’s trading volume jumped 46% to $204 million, according to CoinGlass, indicating active positioning even amid short-term bearish pressure. - Derivatives indicators hint at a shift toward longs: Binance now accounts for the second-largest open interest in ONDO derivatives at $22.23 million, and net volume on Binance has turned bullish. The broader funding rate has ticked up to 0.0044%, suggesting increased demand for long exposure. On-chain fundamentals remain strong - Despite the short-term price dip, Ondo’s Total Value Locked (TVL) surged to an all-time high of $1.926 billion as of December 15 (DeFiLlama). Rising TVL typically reflects fresh, longer-term capital entering the protocol. - The protocol also generated $2.24 million in fees in December so far (DeFiLlama), pointing to stronger platform usage and growing demand for ONDO. - Many participants are depositing ONDO to earn yield in liquidity pools while retaining upside exposure—effectively combining yield generation with positioning for future price recovery. Outlook - The mix of elevated TVL, rising fees, active trading, and improving derivatives flows suggests the recent decline could be temporary. If on-chain activity and positive funding dynamics continue, ONDO may be well placed for a rebound when market sentiment stabilizes. Sources: CoinGlass, DeFiLlama Disclaimer: This article is informational and not investment advice. Cryptocurrency trading is high risk — do your own research before making decisions. © 2025 AMBCrypto Read more AI-generated news on: undefined/news