Ondo Finance’s token continued recovering after the developers submitted a proposal to bring the OUSG stablecoin to Sky, formerly MakerDAO.
Ondo Finance (ONDO) rose for the second consecutive day, reaching a high of $0.7500, its highest level since Aug. 25.
In a statement, Ondo Finance’s developers said they had collaborated with Blackrock and Securitize to have the OUSG proposal added to the Spark Tokenization Grand Prix, which aims to onboard $1 billion in tokenized assets.
Ondo’s OUSG is a tokenized product with over $227 million in assets that offers holders monthly rewards.
Its annual APY stands at 5.11%, which is generated from U.S. government treasuries through the Blackrock USD Institutional Digital Liquidity Fund. It is available to institutional investors and charges a 0.15% fee.
Ondo Finance also operates the more popular US dollar yield token, which yields 5.35% and has over $400 million in assets. Unlike OUSG, USDY is available only to institutional investors.
The new proposal came at a time when the total assets in Ondo Finance have jumped to a record high of $616 million. Most of its these assets are in the Ethereum chain followed by Solana, Mantle, and Aptos.
A key concern for Ondo Finance is that it could lose assets as investors move away from government bonds now that the Federal Reserve has started cutting interest rates.
In its decision last week, the Fed delivered a jumbo cut of 0.50% and hinted that more were on the way. As a result, the benchmark 10-year yield has retreated to 3.7% from this year’s high of over 4.6%.
However, Ondo Finance’s CEO, Nathan Allman, refuted the idea that lower interest rates would lead to a rotation toward riskier assets. In an X thread, he noted that yield tokens like Ondo will benefit when rates start falling, as investors move to riskier assets like crypto. He cited USDC stablecoin, which added billions in assets when the Fed began cutting rates in 2020.
Ondo flips the 50-day moving average
Ondo token bottomed at $0.54 earlier this month as most coins pulled back. It has now bounced back, crossing the 50-day moving average and the 61.8% Fibonacci retracement point.
The Relative Strength Index and the moving average convergence/divergence have also continued rising, in a sign that the token is gaining momentum.
Additionally, the volume in the spot market has been rising, while the futures open interest reached $107 million, its highest level since Aug. 25.
Therefore, Ondo is likely to continue rising, with the next reference level being the 50% retracement point at $0.8392.
From: crypto.news
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