🔹 What is this?
Velodrome Finance is a cryptocurrency launched in 2022. It operates on the Optimism blockchain platform — a second-layer solution for Ethereum that reduces fees and speeds up transactions.
🔹 What does it do?
Velodrome is a decentralized exchange (DEX) and automated market maker (AMM). It allows trading tokens within the Optimism ecosystem, participating in DeFi (decentralized finance), and earning fees for providing liquidity.
🔹 Current figures:
Price: ~$0.0449 (24h growth +2.4%)
Market capitalization: ~$41 million
Fully Diluted Market Capitalization: ~$96 million
Circulating supply: ~915 million VELO in circulation
Total supply: ~2.13 billion VELO
Trading volume for 24h: ~$2.89 million
Trading on ~160 markets
📈 Technical view
The price is now ~$0.045.
Market capitalization is relatively small — ~$41 million, which gives the token a chance to grow significantly with good fundamentals.
About 43% of the total supply is currently in circulation (915M out of 2.13B). This means that more than half of the tokens could be released to the market — this could create pressure on the price in the future.
Trading volumes are moderate (~$2.9 million/24h) — this is good for a low-cap coin.
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✅ Strengths
1️⃣ Launched on Optimism — this network is actively developing and attracting DeFi projects.
2️⃣ Velodrome is a key DEX and AMM within Optimism. If Optimism grows, VELO may grow along with it.
3️⃣ Works with vote-escrowed models (veTokenomics), which incentivize long-term token locking and liquidity creation.
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⚠️ Risks
1️⃣ Main risk — a high percentage of the unlocked supply has not yet been released. New tokens will put pressure on the price.
2️⃣ Competition in DeFi is huge — other DEXs may offer better conditions.
3️⃣ If Optimism does not gain momentum or faces issues — VELO will lose some of its advantages.
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📊 Forecast
In case of a good market and Optimism growth, the token could show a growth of 2–5 times (to the zones of $0.1–0.2) — this is quite realistic for such capitalizations.
But it is important to monitor the emissions and demand for staking/liquidity — if demand drops, selling pressure will quickly consume everything.
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🚩 What to watch?
User activity on Velodrome (TVL — Total Value Locked).
Updates from the Optimism network.
The emergence of new competitors.
Tokenomics updates (voting on changes).
📉 What is visible on the chart
Since December, the token has collapsed from $0.33 to the current $0.045 — this is a drop of almost 90%+.
The minimum for the period was around $0.0356, from which there was a weak bounce.
The price is currently in a range of ~$0.04–0.053. This is a consolidation zone after a strong downtrend.
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⚙️ What does this mean
1️⃣ Trend: Clearly bearish. Any growth so far looks like a bounce in a declining market.
2️⃣ Support: $0.035–0.037 — a key level. If it goes below — you can expect a new minimum.
3️⃣ Resistance: $0.053–0.055 — the zone where selling intensifies. Breaking it on volume will open the way to $0.07–0.10.
4️⃣ Volumes: Judging by the screenshot, the volumes are small. This means that the upward/downward movement can be sharp and volatile.
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📌 Key scenarios
✅ Positive scenario:
If the crypto market recovers, Optimism will receive an influx of liquidity — VELO could break $0.053 and try to reach the zones:
$0.07 (local resistance)
$0.10 (round level and old trading area)
If an altseason starts — $0.15–0.20 is possible, but this already requires strong demand and emission locking.
❌ Negative scenario:
If Bitcoin or the market falls, and new VELO tokens are released to the market — a drop below $0.035 and a move to new lows — for example, $0.025–0.02 is possible.
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🔑 What to do?
If you hold — watch key levels $0.035 (long-stop) and $0.053 (breakout — signal to move).
If you think about entering — it’s wise to buy a small amount near support and add more on trend confirmation.
If speculation — wait for volumes and confirmed break above $0.053.
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📊 Conclusion
For now, the coin is cheap and dangerous: it has potential for x2–x5, but also the risk of going lower due to unfinished emissions.
This is a purely speculative DeFi altcoin — only for risky bets and farming.
