Ondo Finance’s recent pullback looks more like a short-term wobble than the start of a deeper rout. The institutional-focused protocol saw its native token ONDO slide about 10% over the past 24 hours amid a broader market downdraft, but several on-chain and derivatives signals point to resilient underlying demand. What happened - The immediate sell-off appears driven primarily by a sharp liquidity outflow in the derivatives market. CoinGlass data shows roughly $11 million in total capital outflows in the last 24 hours, including nearly $1 million tied to liquidations. These withdrawals trimmed the circulating derivatives balance to about $110 million. - The move was accompanied by a 46% jump in trading volume to $204 million, which often signals high-momentum selling — active trading, but a bearish short-term bias. Why this may be temporary - Long-term capital continues to flow into the protocol. Total Value Locked (TVL) on Ondo Finance hit a new all-time high of $1.926 billion as of December 15 (DeFiLlama). Rising TVL generally indicates more users are committing funds to the protocol rather than exiting. - Holder count has climbed to a record 174,360, and ONDO’s market capitalization stands at $1.27 billion, showing broad investor interest remains elevated. - The protocol is generating real fee income — DeFiLlama reports $2.24 million in fees for December so far — a sign of growing usage that can translate into structural buying pressure over time. Derivatives picture improving - Binance is showing renewed trader interest: CoinGlass lists Binance as the second-largest open interest venue for ONDO derivatives, with $22.23 million in OI. Net volume on the exchange has turned more bullish. - The broader derivatives funding rate has risen to 0.0044%, indicating stronger demand for long exposure. If this trend continues, it could help support a price rebound. Bottom line Short-term technicals and a bout of derivatives-driven selling dragged ONDO down, but healthier on-chain fundamentals — record TVL, rising fees and an expanding holder base — suggest the dip could be temporary. Increased Binance activity and a positive shift in funding rates add to a cautiously optimistic outlook, provided on-chain inflows and platform usage persist. Disclaimer: This article is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making decisions. Sources: CoinGlass, DeFiLlama. Read more AI-generated news on: undefined/news