Velodrome’s Rise: Bullish Signal or Just Another Hype?

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Velodrome's price surge post-Binance listing sparks discussions on its long-term potential and broader crypto market trends.

Velodrome (VELO) has been making waves lately, breaking out over 135% on December 13th, hitting a new all-time high (ATH) at $0.4245. And what’s fueling this surge? Oh, just a little thing called a Binance listing. You know, the same one that usually sends tokens skyrocketing only to have them crash back down shortly after. But hey, let’s break it down a bit.

The Binance Effect and Market Volatility

First off, the Binance listing is a big deal. It exposes Velodrome to millions of users, and with it, a ton of volatility in crypto. Remember back in the day when these listings would cause crazy spikes? Yeah, that still happens, but the sustainability? Not so much. Historically, new coins listed on major exchanges see a massive spike and hit their ATH right away, only to fall back to pre-listing prices or lower. Out of 31 tokens listed on Binance in the past six months, only five have remained above their listing price. That’s a lot of exit liquidity for VCs, right?

The Road Ahead for Velodrome

Now, let’s talk about the road ahead. Velodrome’s part of the Optimism network, making transactions faster and more efficient. And it has a fork, Aerodrome, which recently got $20 million from Coinbase Ventures. Yeah, that’s some serious cash. So with that kind of backing, it’s hard to ignore the potential.

As we gear up for the next bull run for crypto, the signs are there. The Bitcoin halving in 2024 is right around the corner, and institutional interest in crypto is growing. The total crypto market cap is above $1 trillion, and assets for crypto investment products are on the rise.

Will We See a Bull Run in Crypto?

Will we see a bull run in crypto? Maybe. Velodrome and Aerodrome are positioned well as altcoin season approaches. They’re tokens with real-world utility. But don’t forget, there’s a lot of volatility in crypto. Community and social media narratives matter, and while the hype can drive prices up, it doesn’t guarantee long-term stability.

In short, keep an eye on this one, but also keep your feet on the ground.

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