Ondo (ONDO) Experiences 80% Decline While TVL Reaches Record High

Ondo (ONDO) presents a remarkable contradiction: despite its token price plummeting over 80% from its peak, the total value locked (TVL) has soared to an unprecedented high.

Key Takeaways

Ondo's token price has decreased over 80%, while its total value locked (TVL) has hit a new high of $2.5 billion.
The recent decline in price may be attributed to the unlocking of a significant portion of tokens, increasing circulating supply.
Despite challenging market conditions, there is growing momentum in the tokenized equity sector, with Ondo commanding a 54.4% market share.
Investor sentiment suggests that Ondo may be undervalued, and market recovery could be on the horizon as whale investors seize opportunities.

This contrast ignites discussions about the project's genuine potential. Meanwhile, industry experts foresee a bright future for the tokenization sector by 2026.

Ondo Prices Plummet Following Token Unlocking

Ondo is a decentralized finance (DeFi) protocol that focuses on tokenizing real-world assets (RWAs), enabling users to access traditional financial products. These consist of US Treasury bonds, credit funds, and blockchain-based tokenized equities.

According to BeInCrypto price data, the ONDO token has dropped from over $2.10 to about $0.35, reflecting a stunning decline exceeding 80%. As early as 2026, ONDO continued to make lower lows with no evident signs of recovery.

The downturn in price may be linked to token unlock pressure, as Ondo completed the unlocking of 1.94 billion tokens on January 18, representing 57.23% of the total supply. This sudden increase in circulating supply intensified selling pressure and sparked investor concerns. Following the unlock event, ONDO further decreased by 10%.

Is Ondo Undervalued Amid January’s Paradox?

Despite the price drop, Token Terminal data indicates robust growth in the tokenized equity sector, with the total market value of tokenized stocks reaching a new all-time high of $441.2 million. Ondo Finance is at the forefront, holding a significant 54.4% market share.

Charts show that the market capitalization of tokenized equities has significantly increased since September last year, even while the broader crypto market faced a downturn.

This trend indicates that while numerous retail investors have retreated, businesses continue to invest in tokenized equities.

Additionally, Ondo's TVL surged in January, surpassing $2.5 billion, as per DefiLlama data. TVL measures the total value of assets locked in a protocol and serves as an indicator of user participation and confidence. The stark contrast between declining market prices and increasing capital inflows has led analysts to believe that Ondo may be undervalued. Market prices often reflect sentiment and fear, causing retail investors to overlook underlying fundamentals.

Investor Kyren remarked, “The current fear in the markets is a blessing in disguise, particularly for projects like Ondo.”

This contradiction becomes even clearer as tokenization emerged as a pivotal topic at Davos 2026, with global leaders expressing optimism about asset tokenization, viewing it as a bridge connecting traditional finance and DeFi.

Exchange trading data further reveals that, despite falling prices, many whale investors perceive the downturn as an opportunity.

CryptoQuant’s spot average order size data illustrates the prevalence of large orders by whale investors in recent months, as depicted in green on the chart. This behavior indicates that ONDO could experience a substantial recovery once the pressure from token unlocks diminishes and market fears ease.