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ONDO slides despite USDY launch on Sei as token unlock weighs on price

invezz.com 2 h

Altcoins

Ondo Finance ($ONDO) has been in focus this week following its deployment of the $USDY token on the Sei Network.

The move aimed to expand access to tokenised US Treasuries and strengthen Ondo’s presence in the DeFi ecosystem.

$USDY provides yield backed by short-term US Treasuries, and its integration on Sei was expected to attract global liquidity.

Sei’s high-performance infrastructure offers fast transaction finality and high throughput, making it an attractive platform for real-world asset-backed tokens.

Developers can now integrate $USDY as collateral for lending, leverage strategies, and other capital-efficient DeFi products.

However, despite these fundamental developments, the $ONDO token has struggled to maintain its price.

Over the past 24 hours, $ONDO has fallen roughly 7.3% to $0.3073, underperforming the broader crypto market, which declined just 1.48%.

The token is also down 7.2% over the past week, reflecting continued short-term weakness.

Token unlocks add bearish pressure

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A major factor weighing on the market is the recent token unlock.

On January 18, 2026, approximately 1.94 billion $ONDO tokens were released into circulation.

This increased supply has created potential selling pressure as early investors and team members may liquidate holdings.

Even more than a week later, the market appears to be digesting this overhang.

Exchange inflows and on-chain behaviour indicate cautious trading, with some holders likely waiting for favourable conditions before selling.

The result is a short-term bearish sentiment that overshadows fundamental growth.

Broader crypto market weakness

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$ONDO’s decline is also tied to general market conditions.

The global crypto market has been in a mild risk-off phase, with total capitalisation down 1.48% in 24 hours.

Altcoins and real-world asset tokens like $ONDO often see sharper pullbacks during such periods.

Investors reduce exposure to perceived riskier assets, leading to steeper declines even for fundamentally strong projects.

While $USDY’s deployment strengthens Ondo’s long-term positioning, market sentiment has yet to catch up.

Ondo Finance’s TVL, however, remains robust, recording an all-time high of $2.698 billion.

$USDY alone accounts for over $1 billion in TVL across multiple chains, highlighting strong adoption despite price weakness.

The OUSG product, offering short-term Treasury exposure, adds another $770 million to the protocol’s locked value.

Tokenised stocks and ETFs contribute over $500 million, reflecting growing interest in Ondo’s real-world asset offerings.

$ONDO price forecast

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Looking at the Ondo Finance price prediction, $ONDO’s fundamentals remain strong, but technical pressure and tokenomics events continue to challenge near-term performance.

Traders should monitor the support at $0.2089, which, according to analysts, must hold to prevent further declines.

In case of a rebound, the immediate resistance is at $0.3104, near the current price, which could act as a barrier for any short-term recovery. Breaking above this could open the door to the next resistance at $0.4620.

The third resistance sits at $0.5542, which would signal a significant rebound if breached.

In the short term, the combination of lingering supply pressure from token unlocks and cautious market sentiment is likely to dominate price action.

However, upcoming events such as the Ondo Summit on February 3, 2026, could provide catalysts to stabilise or reverse the downtrend.

@OndoFinance

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A historic event for tokenization. BlackRock, Goldman Sachs, The White House, Fidelity, BNY, DTCC, and more speaking at the Ondo Summit in NYC. Streaming live on X Feb 3rd, 10am ET.