Velvet (VELVET) Price Prediction

Deep Dive

1. Exchange Listings & Liquidity (Mixed Impact)

Overview: Velvet gained traction after July 2025 listings on Binance, KuCoin, and BitMart, which amplified trading volume and visibility. Derivatives (50x leverage on Binance Futures) added speculative depth but increased volatility. Current turnover (volume/market cap) is 0.465, signaling moderate liquidity.

What this means: While new listings historically boosted prices (e.g., +29% on Gate.com in July 2025), derivatives can exacerbate sell-offs during market downturns. Sustained liquidity depends on maintaining exchange partnerships and user retention.

2. AI Adoption & Platform Revenue (Bullish Impact)

Overview: Velvet’s AI Co-Pilot (Velvet Unicorn) generates fees via $VU token payments, with 1/3 burned and 1/3 distributed to veVELVET stakers. Integration with Gloria AI’s news terminal (Crypto Briefing) enhances real-time trading signals, potentially increasing platform usage.

What this means: If AI-driven strategies attract more users (current: 100k+), fee revenue could rise, accelerating $VELVET buybacks and staking rewards. Historical precedent: Wormhole’s tokenomics update drove a 6.3% price bump.

3. Token Unlocks & Vesting (Bearish Risk)

Overview: 20% of supply (200M VELVET) is reserved for the team, vesting until 2026–2027. Early backers (15% supply) have a 1-year cliff + 2.5-year linear unlock.

What this means: Large unlocks could pressure prices if staking demand doesn’t offset sell pressure. Similar unlocks at projects like dHEDGE caused 10–15% dips post-vesting. Monitoring veVELVET lock-up rates post-2026 will be critical.

Conclusion

Velvet’s price hinges on balancing AI product traction against vesting overhangs. Short-term, exchange liquidity and AI adoption could lift prices toward $0.242 (38.2% Fib), but unlocks in 2026 pose structural risks. Will veVELVET staking rewards outpace dilution from vesting schedules? Watch monthly staking growth and platform revenue splits (50% to stakers) for clues.