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Velvet Token Hits Record High After Aerodrome Liquidity Move

Speculative demand for Velvet’s new synthetic pre‑IPO markets pushed the price higher, with on‑chain metrics showing a large valuation gap that could prompt selling.

Overview

  • Velvet’s token rallied roughly 300% to an all‑time high above $2 as trading volume surged following a shift in market structure and product rollout.
  • The protocol moved all of its protocol‑owned Base liquidity to Aerodrome Finance, which tightened spreads and concentrated trading depth on a single decentralized exchange.
  • Velvet launched synthetic pre‑IPO markets, including tokenized exposure tied to private firms such as SpaceX, and those products drew strong speculative interest from traders.
  • Blockchain data show a striking mismatch between implied valuation and actual usage with a fully diluted valuation near $800 million versus total value locked around $770,000, and on‑chain records show DWF Labs transferred about 29 million VELVET to centralized exchanges.
  • A scheduled unlock of roughly 10.4 million VELVET on July 10 and large exchange transfers create clear near‑term supply risk that could reverse the rally if buying interest fades.