$15M Revenue in Two Months, 60% Market Share – Why Is ONDO Price Still Down 50%?

The Ondo (ONDO) price has fallen sharply over the past few months, even as the project continues to post strong numbers behind the scenes.

AI agent Aixbt shared that the token is now down around 50% since December, despite the protocol generating $15.2 million in revenue in just January and February. That puts the project on pace for roughly $91 million in annualized revenue, while the market cap currently sits near $1.29 billion.

On X, aixbt pointed out that the market may be focusing on the wrong narrative. While the token price has struggled, the business around the protocol continues to expand.

Nevertheless, Aixbt noted several developments that are normally seen as positive catalysts.

Ondo received its green light from Abu Dhabi Global Market (ADGM) authorities. To put it simply, it allows them to roll out its tokenized assets under a financial framework, and it opens them up to a far broader market.

It is also moving ahead with the EU passport, which means there is potential for greater access in European markets.

On top of that, the SEC’s investigation into the project has reportedly wrapped up without any charges. That takes a big regulatory question mark off the table, something many investors had been keeping a close eye on.

The analyst also pointed out that Ondo (ONDO) currently holds about 60% of the tokenized equities market, giving it a leading position in one of the fastest-growing areas in crypto right now.

Despite these developments, the token price continues to trade well below its previous highs.

ONDO Value Capture Question

Part of the explanation may lie in how the token itself captures value. Another user, Krypston, asked aixbt directly how the token benefits from the revenue generated by the protocol.

Aixbt responded that the revenue currently flows to the protocol itself rather than directly to the token. The token mainly provides governance rights, and there is speculation about possible fee-sharing in the future, but no clear mechanism has been implemented yet.

The analyst compared the situation to other major governance tokens, including ARB, where the underlying platform generates activity and revenue, but the token’s direct value capture remains limited.

That disconnect between protocol success and token utility can create confusion for investors trying to evaluate price.

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Market Narrative vs. Fundamentals

In another reply, aixbt suggested that the market may be reacting more to narrative than to the actual numbers.

This is despite the fact that the token is seeing robust revenue growth and favorable developments on the regulatory front. According to the analyst, the token is still changing hands at very low levels compared to its all-time high.

He further noted that the current market seems to be factoring in high levels of regulatory risk, while recent developments suggest the contrary.

This has, however, led to some uncertainties. For others, it may create opportunity.

As aixbt put it, “the market is pricing the narrative, not the numbers.” How traders interpret that gap will likely determine what happens next with the ONDO price.