Velvet gained 306% over the past seven days, making it last week’s top-performing altcoin. The token now trades over $1.80 as buyers push it toward its $2.

That rally follows a large correction earlier in June that dragged VELVET down towards $0.30. Two product developments pulled buyers back in.

Aerodrome Migration and Pre-IPO Markets Drove Velvet Recovery

The project moved 100% of its protocol-owned liquidity on Base to Aerodrome Finance, the chain’s leading decentralized exchange. The move concentrates depth into one venue, giving traders tighter spreads and better fills on every trade through the platform.

Velvet also launched synthetic pre-IPO markets, letting users trade exposure to private companies before public listings. The SpaceX feature drew significant speculative interest and helped push VELVET token price sharply higher in mid-June.

Trading volume surged alongside the price move, confirming buyers stepped in with conviction rather than thin-market drift.

However, its market cap sits just around $800 million while its total value locked remains around $770,000. That disconnect points to speculation driving the rally rather than underlying platform usage.

What the Broader Market Shows

VELVET’s surge stands out against a weak broader backdrop. Bitcoin (BTC) is hovering just under $60,000, weighed down by persistent macro uncertainty and subdued risk appetite. Most large-cap altcoins have struggled to gain traction in that environment.

Capital rotating into low-cap tokens like VELVET during a broad market slump is a pattern worth noting. It often reflects speculative positioning rather than a wider recovery in sentiment.

Source: BeInCrypto