Last night, I was glued to the screen and suddenly jumped up from my chair when spot silver actually broke the unprecedented $69/ounce! What's even more interesting is that while the precious metals market is thriving here, the trading volume of Ondo's tokenized iShares Silver Trust in the crypto circle has soared to a new high. These two events happening together is definitely not just a coincidence! Today, let's delve into the logic behind this wave of connection and discuss my judgment on the market direction in the near future. It's all valuable information, and missing it would be a huge loss!
First, let me give new followers some basic knowledge; old fans can skip this part. The tokenized iShares Silver Trust created by Ondo essentially transforms traditional silver ETF shares into tokens that can be traded on-chain. Simply put, in the past, if you wanted to speculate on silver, you had to mess around with a securities account; now, it's no longer necessary, as you can directly trade on-chain, effectively building a bridge between the precious metals market and the crypto market. The recent breakthrough of spot silver surpassing the key $69 mark is fundamentally a result of the global risk aversion sentiment combined with rising inflation expectations, especially given the current chaotic international situation and the slightly weakened dollar index, which naturally drives funds towards hard currencies like silver.
Here's the key point: why does the rise in silver prices lead to an increase in the trading volume of Ondo's token? I personally believe there are two core reasons. First, the siphoning effect of incremental funds. Many investors in the crypto circle have long been eyeing opportunities in the traditional financial market, but previously couldn't participate due to barriers. Now, with tokenized products, there is a low-threshold entry channel. When silver prices rise, this portion of funds reacts quickly, directly positioning through Ondo's products, resulting in a surge in trading volume. Second, the impetus from arbitrage funds. There is a certain price linkage between spot silver and tokenized products. When there is a price difference, arbitrage funds will enter the market, buying and selling to profit from the difference, which further amplifies the trading volume.
Let me insert my personal opinion here: this wave of linkage is definitely not a short-term coincidence, but an important signal of the tokenization of traditional assets. We used to say that the crypto market needs to integrate with traditional finance, but it often stayed at the conceptual level. This time, Ondo's products directly benefited from the price increase of precious metals, bringing the integration to reality. What does this mean? It means that in the future, more traditional assets will enter the crypto market through tokenization, and the liquidity pool in the crypto market will grow larger, while the volatility of the traditional market will also more frequently transmit to the crypto circle. Therefore, moving forward, we not only need to focus on the crypto market itself but also pay close attention to the trends of traditional commodities like gold, silver, and oil, as this will become an important reference for judging the flow of funds in the crypto market.
There may be friends who ask, can we still enter the market now? My suggestion is, don't blindly chase high prices! Silver has already broken through a key level, and there may be a short-term pullback, while Ondo's tokenized products are strongly tied to silver prices, likely fluctuating during the pullback. If you really want to position yourself, it might be wise to wait until the pullback is in place before trying a small position, and be sure to manage your risk, as both the precious metals market and the crypto market have significant volatility; don't put all your eggs in one basket.
Lastly, let me say something heartfelt: there are indeed many opportunities in the market recently, but there are also many pitfalls. This new play combining traditional assets and crypto will surely increase in the future. As investors, the most important thing is to maintain a learning mindset and keep up with the market's rhythm. I will continue to closely monitor the linkage between this wave of silver and Ondo's tokenized products. I will share the latest judgments here as soon as possible. If you think my analysis makes sense, don't forget to hit follow @加密崎哥 #美国非农数据超预期 $BTC .
