Ondo Finance (ONDO) has announced Ondo Chain, a Layer-1 chain designed specifically for the tokenization of institutional Real-World Assets (RWA).
This chain aims to address the issues that RWA tokenization is currently facing, such as incompatibility with DeFi and the lack of security guarantees of the network and protocols.
This announcement, along with the strong growth performance of the entire RWA industry, has brought new hope to investors. Bitcoin Magazine has analyzed on-chain activity to assess whether this Token is being undervalued.
The number of wallets with a certain holding amount is increasing according to the chart. Typically, the number of whale wallets increases while small investors (wallets with lower holdings) sell, indicating a whale accumulation process.
The fact that all address groups are increasing their holdings is a sign of accumulation, growing demand, and network activity. This highlights the strong growth of the network and is a positive signal for both the chain and investors.
The daily active address metric has been trending upward since the beginning of January, reinforcing the view of increased on-chain activity. At the same time, the network growth rate is also on the rise. This is a metric that measures the number of new addresses created on the network each day.
The Trading Volume has remained stable over the past three weeks, but other activity metrics have shown many encouraging signs.
Social metrics are also on the rise along with on-chain activity. Social Volume has been gradually increasing since the beginning of January. At the same time, the Weighted Sentiment has also remained positive over the past three weeks.
However, the Open Interest (OI) has slightly decreased compared to the previous month. This decline is partly due to liquidation orders from quick losses on February 3, and partly because traders have chosen to stay out of the market after the strong volatility in February.
The ONDO bulls have successfully defended the 61.8% Fibonacci support level at $1.18 over the past six weeks, a level drawn based on the strong uptrend in November.
Although the CMF (Chaikin Money Flow) indicator shows significant capital outflows, the ONDO price has not created a new Dip in the past month.
This is an encouraging sign, highlighting the relatively good performance of Ondo compared to other medium to large-cap altcoins. This relative strength could become an advantage for the bulls in the coming weeks.
Currently, ONDO is forming a trading range between $1.18 and $1.6. If the demand for Ondo continues to remain stable, this accumulation phase could quickly turn into an uptrend when the overall market sentiment stabilizes.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.
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