Ondo (ONDO) is creating a notable paradox. While the token price has fallen over 80% from its all-time high (ATH), the total value locked (TVL) has set a new all-time high.
This divergence raises questions about the inherent potential of the project. At the same time, industry leaders are showing an optimistic outlook for the tokenization sector in 2026.
Ondo price plummets with token release
Ondo is a decentralized finance (DeFi) protocol specialized in the tokenization of real-world assets (RWA). This protocol allows users to access traditional financial products such as U.S. Treasury bonds, credit funds, and tokenized stocks on the blockchain.
According to BeInCrypto's price data, ONDO dropped from a high of over $2.1 to around $0.35. This represents a decline of over 80%. Even in early 2026, ONDO continued to set new lows without clear signs of recovery.
This price drop is believed to be due to the pressure from the token lock release. Ondo completed the unlocking of 1.94 billion tokens on January 18. This quantity corresponds to 57.23% of the total issued tokens.
The surge in circulation has added selling pressure, increasing investor anxiety. After the unlock, ONDO fell another 10%.
Ondo's January Paradox: Is the project undervalued?
However, according to data from Token Terminal, there is strong momentum in the tokenized stock sector. The market capitalization of tokenized stocks reached an all-time high of $441.2 million. Ondo Finance leads this sector with a market share of 54.4%.
Looking at the chart, since September 2023, the market capitalization of tokenized stocks has surged. Growth has been observed even as other cryptocurrency markets languish.
This data indicates that while many individual investors withdrew their funds, companies continue to invest in tokenized stocks.
Additionally, Ondo's TVL surged in January, reaching an all-time high of over $2.5 billion according to DefiLlama.
TVL indicates the total value of all assets locked in the protocol, serving as a measure of user participation and trust. With increased capital inflows amid falling market prices, analysts suggest that Ondo is undervalued. While sentiment and emotion are the main drivers of price formation, individual investors tend to overlook intrinsic value.
"The current market fear may seem disadvantageous, but it actually serves as a tailwind for projects like Ondo," said investor Kyren.
This paradox is further highlighted by the fact that tokenization became a major theme at the Davos Conference in 2026. Global leaders expressed an optimistic view on asset tokenization, suggesting it will bridge traditional finance and DeFi.
Data from exchange transactions shows that amidst the price drop, many whale investors see the decline as an opportunity.
CryptoQuant's average order size data shows that in recent months, large orders by whales have been dominant, as confirmed by the green color in the chart.
From this trend, if market fears ease and selling pressure from concerns about unlocks subsides, a strong rebound for ONDO is expected.
