Why Velvet (VELVET) is up today: It trades at $0.7761 after a 104.3% jump driven by AI trading platform growth and rewards.
Author: Kritika Gupta
Velvet Capital (VELVET), an AI-powered non-custodial multi-chain trading terminal for spot, perpetuals, and yield strategies, surged 104.3% over the past 24 hours to $0.7761, according to CoinGecko. The rally comes as traders react to accelerating product rollouts, growing attention around VelvetX rewards campaigns, and new platform features that include access to pre-IPO assets such as SpaceX, OpenAI, and Anthropic. VELVET also reached a new all-time high of $1.07 earlier today before pulling back.
This article is for informational purposes only and does not constitute financial advice.
The primary catalyst behind VELVET’s rally is continued product expansion rather than a single announcement. Velvet Capital has steadily rolled out new functionality for its AI-powered trading terminal, including its live Hyperliquid perpetual futures integration launched in May 2026 and a partnership with TradeXYZ announced around June 2 that enables leveraged access to global markets.
According to official posts from Velvet Capital, the platform recently highlighted trading access to pre-IPO assets such as SpaceX, OpenAI, and Anthropic. The project has also continued promoting VelvetX, its invite-only trading platform that offers up to 100% cashback and 2.7 million VELVET rewards throughout the summer, with Gems conversion scheduled around August 10.
Market structure likely amplified the move. CoinGecko data shows VELVET gained more than 598% over the past seven days, while Coinalyze reported sharply rising derivatives participation. Broader sector rotation into AI-related crypto projects and trading infrastructure tokens also supported demand. [INTERNAL LINK: AI crypto tokens gaining momentum in 2026]
Trading activity accelerated alongside the rally. CoinGecko reported approximately $71.82 million in 24-hour trading volume, while CoinMarketCap showed roughly , both well above recent averages. Coinalyze data showed open interest climbing to around , with some reporting windows showing a over 24 hours.
Steady attention without excessive speculation.
Funding rates remained positive at approximately 0.08%, indicating traders were paying a premium to maintain long positions. Meanwhile, CoinMarketCap highlighted transfers of millions of VELVET tokens by project-linked wallets and large holders to centralized exchanges. DeFiLlama data showed Velvet Capital’s TVL remained relatively stable near $605,000, suggesting the rally was primarily trading-driven rather than TVL-driven.
Sentiment on X remains predominantly bullish, although caution is emerging after the sharp rally. @NuriGems, a verified analyst and Velvet ambassador with approximately 56,400 followers, reiterated a bullish stance and highlighted previous calls that VELVET could reach parity with the U.S. dollar.
The official @Velvet_Capital account continues to focus on product utility rather than price action. Recent posts emphasized VelvetX rewards, SocialFi features, and the platform’s ability to offer access to pre-IPO markets.
A more cautious view came from trader @Zaynnode, who argued VELVET appeared overextended near the $0.90 to $1.00 range and suggested profit-taking could push the token back toward the $0.70 area. That caution aligns with on-chain observations showing increased token transfers to centralized exchanges.
Historical price action shows immediate resistance in the $0.90 to $1.00 zone, which formed during today’s rally before the pullback from fresh highs. The key support area sits around $0.70, based on recent consolidation and profit-taking levels identified by traders during the current move.
The next major historical level is the all-time high of $1.07, recorded on June 11, 2026. According to TradingView data on the MEXC VELVETUSDT pair, the 14-day RSI is 96.4, which signals extremely overbought conditions. VELVET also trades significantly above major moving averages following its recent breakout.
This is not financial advice. Always do your own research before making investment decisions.
Over the next several weeks, traders will likely focus on VelvetX reward distributions, the ongoing 2.7 million VELVET incentive campaign, and the planned Gems conversion event around August 10. The project has also indicated additional SocialFi features, AI tooling, and market-access expansions are under development.
Token vesting schedules remain active through 2026 and beyond, according to DropStab and CryptoRank. While no major cliff unlock appears imminent, ongoing token releases and increased exchange deposits from large holders remain notable risk factors. The broader AI and trading infrastructure narratives across crypto markets will also influence sentiment.
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