Velvet Price Soars 300% Amid Synthetic Pre-IPO Trading Frenzy

The cryptocurrency Velvet has surged by over 300% in just three days, reaching an all-time high of $2.15 on June 29. The price increase was triggered by two key events: the protocol's migration of liquidity to Aerodrome Finance and the launch of synthetic pre-IPO trading markets.

The move concentrated trading depth in one marketplace, reducing slippage and tightening spreads, while also offering tokenized exposure to private companies, including SpaceX. The breakout above a key resistance area at $0.60-$0.67 triggered a rapid move higher as short sellers exited positions and fresh buyers entered the market.

Despite strong buying interest, valuation risks remain, with Velvet's fully diluted valuation climbing to approximately $800 million, while its total value locked stands at about $770,000. The large gap suggests that the recent price increase has been driven primarily by speculation rather than growth in on-chain activity.