Here’s why Near Protocol, Ondo, and Hyperliquid crypto tokens are rising

Near Protocol's resilience has been evident over the past few months, experiencing a substantial rally from its year-to-date lows. This performance mirrors that of other AI-focused tokens, indicating a strong connection to the burgeoning artificial intelligence sector within crypto. The project recently rolled out confidential payment features on its platform, enhancing user privacy for transactions. Furthermore, Near has been actively integrating advanced AI models into its ecosystem, positioning itself at the confluence of AI and decentralised privacy solutions.

Hyperliquid (HYPE) has also seen considerable momentum, nearing its all-time high amidst increasing market interest. This upward trend appears to be fuelled by growing demand, partly driven by the performance of recently launched crypto Exchange Traded Funds (ETFs) in other markets. These ETFs have seen significant inflows, suggesting a rising investor confidence in the underlying assets. Hyperliquid’s appeal has also been bolstered by a dramatic increase in trading volume and open interest, especially concerning futures contracts for commodities like crude oil and gold.

Ondo Finance (ONDO) has likewise shown impressive growth, recovering substantially from its previous lows. This rebound is attributed to robust fundamentals, including sustained demand for its tokenised products such as USDY and OUSG. These offerings continue to attract investors seeking exposure to real-world assets (RWAs) on the blockchain. Ondo Global Markets, a platform for trading tokenised assets, has also seen its Total Value Locked (TVL) surpass USD $1 billion, highlighting its increasing adoption and liquidity.

Why it matters for Australian investors

The performance of tokens like NEAR, ONDO, and HYPE offers valuable insights for Australian investors navigating the cryptocurrency landscape. While these specific tokens may not always be readily available on every local Australian exchange, their movements signify broader trends that can impact the local market. Australian investors often use platforms like CoinSpot, Independent Reserve, Swyftx, and BTC Markets to access a wide range of digital assets, and understanding global market dynamics is crucial.

For instance, the AI narrative driving Near Protocol's growth resonates with the increasing tech-savvy segment of Australian investors. As artificial intelligence continues to gain traction, projects integrating AI with blockchain technology could present compelling opportunities. Similarly, Ondo Finance's focus on real-world asset tokenisation aligns with a growing global interest in bridging traditional finance with decentralised finance (DeFi), a trend that Australian investors are increasingly exploring. This could lead to a demand for similar RWA-focused projects or products accessible in Australia.

Hyperliquid's surge, linked to ETF performance and derivatives trading volumes, indicates the increasing sophistication of the crypto market. While direct access to some of these complex derivatives might be limited or subject to stricter regulations by ASIC in Australia, the underlying demand for such financial instruments globally can influence broader market sentiment. Australian investors should be aware that significant liquidity events and institutional interest in other jurisdictions often create ripple effects that influence prices on local exchanges, affecting assets they do hold.

From a regulatory perspective, the Australian Taxation Office (ATO) classifies cryptocurrencies as property for tax purposes, meaning capital gains tax generally applies to disposals. Understanding the drivers behind these prominent global surges can help Australian investors make more informed decisions about their portfolio allocations, ensuring they stay abreast of market movements that could affect their tax obligations or investment strategies. Additionally, AUSTRAC continues to monitor and regulate digital currency exchanges to combat financial crime, providing a level of oversight for transactions involving these assets.

Impact on the AUD market

The strong performance of these international tokens can have several indirect impacts on the Australian dollar (AUD) cryptocurrency market. When major altcoins experience significant rallies, it often boosts overall market sentiment. This positive sentiment can translate into increased trading activity on Australian exchanges, potentially leading to higher volumes for other cryptocurrencies, including those pegged against the AUD.

Australian investors looking to enter or exit positions in these high-performing assets might need to convert AUD to stablecoins like USDT or directly to other major cryptocurrencies before trading. This process, while seemingly minor, contributes to the demand for cryptocurrencies within the Australian market ecosystem. If a substantial number of Australian investors decide to allocate capital to such surging assets, it could influence liquidity dynamics on local platforms.

Furthermore, the success of categories like AI and RWA in the global market could influence which types of projects gain traction or even consideration for listing on Australian platforms. For example, if RWA tokenisation, championed by Ondo, continues its growth trajectory, Australian exchanges might see increased user demand for similar offerings or improved functionality for existing assets that align with RWA principles. This could lead to more diversified and robust options for AUD-based investors.

Conversely, if these international tokens experience significant corrections, it can also create a ripple effect, leading to broader market downturns that affect AUD-denominated crypto assets. Australian investors, therefore, need to remain vigilant, understanding that global rallies and dips are intrinsically linked to the performance of their local portfolios. Monitoring these international market leaders provides a barometer for broader market health and potential future trends relevant to the Australian context.

What to watch next

For Australian investors, keeping an eye on the continued developments within the AI and RWA sectors is paramount. Near Protocol's advancements in confidential payments and AI integration signal areas of rapid innovation that could see sustained growth. Investors should monitor how these technological progressions translate into broader adoption and partnerships, particularly any that might expand services or accessibility within the Asia-Pacific region.

Hyperliquid’s momentum, influenced by ETF inflows and derivatives market activity, highlights the growing institutional interest and financialisation of cryptocurrency. While Australia's regulatory landscape for crypto ETFs is evolving, the global movement towards these investment vehicles could eventually pave the way for similar offerings locally, potentially opening new avenues for Australian investors to gain exposure. Observing global regulatory trends and product launches will be key.

Ondo Finance's expansion in real-world asset tokenisation is another critical area. The growth of its TVL and demand for products like USDY and OUSG demonstrates a tangible link between traditional finance and DeFi. Australian investors should watch how platforms and protocols continue to bridge this gap, as it could eventually lead to more mainstream adoption and the availability of tokenised traditional assets on Australian-centric platforms. This could include tokenised Australian equities, property, or commodities.

Finally, broader market sentiment and macroeconomic factors remain crucial. Interest rate decisions by central banks, global geopolitical events, and regulatory announcements from bodies like ASIC or AUSTRAC will continue to shape the investment environment for Australian crypto holders. Keeping a close watch on these global and local developments will be essential for making informed decisions and navigating the evolving digital asset landscape effectively.