tl;dr
Kaiko Research warns of bearish outlook for Ondo Finance (ONDO) due to declining momentum in real-world asset (RWA) projects and potential impact of expected Fed interest rate cuts in September. The firm highlights decreased interest in ONDO amidst changing US rate environment. ONDO's trading price ...
Kaiko Research warns of a bearish outlook for Ondo Finance (ONDO) due to declining momentum in real-world asset (RWA) projects and the potential impact of expected Fed interest rate cuts in September. The firm highlights decreased interest in ONDO amidst the changing US rate environment, with ONDO's trading price currently at $0.67, down 1.8% in the last 24 hours.
The crypto market data analytics firm is warning that the real-world asset (RWA) project, Ondo Finance (ONDO), could remain bearish for two primary reasons. According to a new report, Kaiko Research says that ONDO is losing momentum after the hype around RWA projects has died down. The firm also warns that expected Fed interest rate cuts in September could further dry up investment inflows into Ondo Finance.
CME’s FedWatch Tool indicates that 67.5% of traders and investors are expecting the Fed to cut interest rates by 25 basis points next month.
Amidst the hype around tokenized funds, there have been increased activities in funds such as Franklin Templeton’s FBOXX, Ondo Finance’s OUSG and USDY, and Hashnote’s USYC. Each fund offers yields in line with the Fed funds rate. As the hype around these tokenized funds rose, both on-chain flows and the secondary market for related tokens saw increased activity.
Ondo Finance’s governance token, ONDO, experienced the largest trading surge, coinciding with its collaboration announcement with BlackRock’s BUIDL. ONDO’s price hit a record high of $1.56 in June amid soaring BUIDL inflows and rising interest in on-chain funds. However, hype has since waned, and inflows may face headwinds as the US rate environment changes.
Ondo is trading for $0.67 at the time of writing and is down 1.8% in the last 24 hours.
More about Robinhood Markets Inc
Stock Analysis: Robinhood Markets Inc
Sector: Finance
Industry: Security Brokers, Dealers & Flotation Companies
Market Cap: $17,543,166,000
Stock Price: $63.97
Dividend Yield: None
P/E Ratio: 0.31
EPS: $2.545
Beta: 0.13
Volume: 2,238,000,000
Revenue: $23.97 billion
Net Income: $6.6 billion
ROE: 0.403