Velo (VELO) Price Prediction

Deep Dive

1. RWA & Stablecoin Growth (Bullish Impact)

Overview:
Velo’s USDV stablecoin, collateralized by fiat/crypto reserves, is expanding into real-world assets (RWAs) like tokenized gold and green energy infrastructure via partnerships with Securitize and Paxos. The Laos digital gold project with Solana (announced August 2025) could anchor USDV as Asia’s RWA settlement layer.

Daily transactions surged 255.5% YoY in Q1 2025 (Messari), signaling network traction.

What this means:
Increased RWA activity would require more VELO to mint USDV, tightening supply. However, slow institutional adoption or regulatory hurdles in Asia could delay momentum.

2. Tokenomics & Supply (Mixed Impact)

Overview:
VELO’s circulating supply reached 17.56B in July 2025, adhering to vesting schedules. The team delayed unlocks for founders/contributors beyond 2025 to avoid dilution (Velo Protocol).

However, the fully diluted valuation ($320M) remains 41% above the market cap, posing long-term inflation risks.

What this means:
Near-term supply discipline supports price stability, but long-term holders may face dilution if ecosystem growth lags behind token issuance.

3. Technical & Market Sentiment (Bearish Risk)

Overview:
VELO faces persistent resistance at $0.0145–$0.0155, with the EMA200 trending downward since June 2025 (KuCoin). The Bollinger Band squeeze suggests volatility ahead, but declining volume (-17% weekly) hints at weak bullish conviction.

Meanwhile, the Altcoin Season Index (62) shows capital rotating toward higher-risk assets, which could benefit VELO if BTC dominance retreats.

What this means:
A close above $0.0155 could trigger short-term momentum, but failure risks a retest of $0.011 support.

Conclusion

VELO’s price hinges on RWA adoption offsetting technical resistance and inflation risks. While partnerships with Paxos and Solana strengthen its cross-border use case, traders should monitor USDV’s growth and on-chain metrics like collateralization ratios. Can VELO sustain network activity if macro conditions tighten?