ONDO Finance Comes Under Scrutiny Over $40M Token Dump

Ondo Finance has come under market scrutiny after large token transfers from its treasury wallet raised fresh concerns about supply concentration. On-chain data shows the protocol sold 101.14 million ONDO tokens worth more than $40 million between May 11 and May 21.

The transactions added pressure to ONDO’s market structure as several top wallets also reduced their holdings during the same period. Data further shows that the top 10 addresses collectively control about 72% of the token’s total supply.

Major Wallets Continue Reducing ONDO Exposure

Ondo Finance remains the largest holder with roughly 5.6 billion ONDO, representing about 56% of the circulating supply. The second-largest holder controls around 677 million ONDO, or nearly 7%, and has also been actively selling tokens into the market.

Beyond those wallets, the third- and fourth-largest addresses are linked to the crypto exchanges Bithumb and Binance. Each wallet holds close to 2% of the total ONDO supply, according to recent blockchain data.

The concentrated ownership structure has intensified discussions around ONDO’s token distribution and treasury management strategy. For context, large treasury sales often attract attention because they can increase short-term selling pressure and weaken market sentiment.

ONDO Faces Price Pressure

ONDO’s market performance has also reflected the recent pressure from treasury activity and broader market weakness. The token fell nearly 7% over the past 24 hours, pushing its market capitalization down to around $2 billion.

Trading activity also declined during the same period as market participation softened across major exchanges. Daily trading volume dropped nearly 6% and hovered around $395 million at the latest reading.

However, despite the recent sell-off, holder participation continued moving higher over the past month. The number of ONDO holders climbed from about 189,000 on April 24 to more than 193,000 by May 22.

Protocol Activity Remains Strong Despite Market Pressure

Ondo Finance also maintained strong protocol activity despite the recent decline in its token’s performance. The platform reportedly generated more than $887 million in fees over the past seven days, while its total value locked (TVL) reached $3.76 billion.

The coming weeks could prove important for ONDO as traders continue monitoring treasury wallets and exchange flows. As a result, many market participants are now watching whether strong protocol usage can support price stability amid ongoing token sales.