Ondo Finance successfully tested the near-instantaneous conversions between USDC and BUIDL.
A price breakout above $0.8276 for ONDO might lead to additional trading up to $1.37.
Using its OUSG token, Ondo’s Finance was one of the first backers of the BlackRock BUIDL fund.
The native coin of Ondo’s DAO, ONDO, has been exhibiting significant growth in the cryptocurrency market. The price of ONDO has resumed its upward trend, rising 8% in the past week to trade at $0.82. According to some market observers, this surge should continue and result in future profits of between 50% and 60%.
Why Is the ONDO Price Rally Happening?
Circle, the issuer of USDC stablecoins, announced a new smart contract feature on Thursday, April 11, that enables fast redemptions of USDC stablecoins from the recently launched BlackRock BUIDL fund. The nearly instantaneous conversions between USDC and BUIDL were tested quickly on Ondo Finance’s tokenized asset platform.
BlackRock, the biggest asset manager in the world, gained attention last month when it introduced its own BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and dabbled in the asset tokenization space.
The Ethereum-based BUIDL token, which offers daily dividends dispersed to token holders through blockchain channels, represents an investment in the fund. One of the fund’s earliest backers, Ondo’s Finance, used it as collateral for its OUSG token.
Lunacrush data shows that an Ondo wallet on the Ethereum network recently swapped $250,000 worth of BUIDL tokens for USDC.
“We are utilizing it to facilitate immediate 24/7/365 redemptions of OUSG into USDC,” said Nathan Allman, CEO of Ondo’s Finance. The Ondo Short-Term U.S. Government Treasuries token, or OUSG, is backed by government-issued securities.
The ONDO Price Rally Will Go Up to $1.37
From the start of the month, Ondo’s price has been settling slightly below the $0.8276 support level. If the market as a whole shows strength, ONDO may be able to overcome this obstacle and use it as support. For holders of ONDOs, such a scenario might yield enormous profits, perhaps reaching the psychologically significant threshold of $1.0000. This would be a 20% rise above the existing amounts.
The fact that $0.8276 was once high and subsequently turned into support gives it significance. The ONDO’s price is currently moving rather near this resistance once more. A breakout over this might result in a price increase to $1.0.
Crypto expert Decilizer claims that ONDO has confirmed support at $0.75 and is moving toward our next objective of $1.37, provided that Bitcoin keeps up its strong pace.
