Ondo (ONDO) creates surprising contradictions. Although the token price has fallen over 80% from its all-time high (ATH), the total value locked (TVL) has reached a new record.
This discrepancy raises questions about the project’s true potential. At the same time, industry leaders predict a positive outlook for the tokenization sector in 2026.
sponsored
After unlocking, Ondo price drops significantly
Ondo is a decentralized finance (DeFi) protocol focused on the tokenization of real-world assets (RWA). This protocol allows users to access traditional financial products. These include US government bonds, credit funds, and tokenized stocks on the blockchain.
BeInCrypto price data shows that ONDO has fallen from a peak of over $2.1 to around $0.35. This represents a reduction of more than 80%. In early 2026, ONDO continued to make new lows with no clear signs of recovery.
Negative price action may stem from token unlocking pressure. Ondo recently completed the unlocking of 1.94 billion tokens on January 18th. This amount accounted for 57.23% of the issued supply.
The rapid increase in circulating supply increased selling pressure and heightened investor concerns. Since unlocking, ONDO has fallen another 10%.
sponsored
Ondo’s January Paradox: Is the project undervalued?
However, Token Terminal data shows strong momentum in the tokenized equity sector. The total market value of tokenized shares reached a new ATH of $441.2 million. Ondo Finance leads the sector with a market share of 54.4%.
The chart shows that the market capitalization of tokenized stocks has skyrocketed since September last year. This expansion occurred despite the fact that the entire cryptocurrency market entered a downturn during the same period.
This data suggests that while many retail investors are withdrawing capital, companies continue to allocate funds to tokenized stocks.
sponsored
Additionally, Ondo’s TVL rose significantly in January. According to DefiLlama data, ATH exceeded $2.5 billion.
TVL represents the total value of assets that users lock into the protocol. It reflects user participation and confidence. The contrast between falling market prices and rising capital inflows has led analysts to suspect that Ondo is undervalued. Sentiment and emotions often drive market prices, causing individual investors to overlook fundamentals.
“The current uncertainty in the market is a blessing in disguise, especially for a project like Ondo,” said investor Kairen.
sponsored
This contradiction will become even more pronounced when tokenization emerges as a central theme at Davos in 2026. World leaders expressed optimism about asset tokenization. They described it as a bridge between traditional finance and DeFi.
Currency trading data also shows that even though prices are falling, many whale investors see the decline as an opportunity.
CryptoQuant’s spot average order size data highlights the dominance of large whale orders in recent months, as shown in green on the chart.
This pattern suggests that ONDO could face a strong recovery once selling pressure from unlock concerns fades and market fears subside.
