Base and BNB Chain-linked token VELVET recorded a sharp rally this week, gaining more than 155% on the weekly chart as speculative and derivatives-driven trading activity increased around the token.
According to CoinMarketCap data, VELVET rose from an opening price of $0.4494 to around $1.17. The token traded between a weekly low of $0.4216 and a high of $1.21.
At the time of the snapshot, VELVET was trading near $1.18, giving it a market capitalization of approximately $500.44 million and a fully diluted valuation of about $1.17 billion. Liquidity relative to market cap stood at roughly 2.42%, or an estimated $12.1 million.
Trading activity also increased significantly, with the dashboard showing $51.16 million in 24-hour volume, up 20.15% on the day, and more than 26,400 token holders.
The token has spent the past two months moving in sharp, repeated cycles rather than a steady trend, climbing to an all-time high of $1.87 in late June before falling nearly 70% from that peak within weeks, only to stage several more double- and triple-digit percentage rallies since.
This week’s surge fits the same pattern: the token tends to rise about as fast as it falls, making single-week percentage moves a poor indicator of where it settles from here.
What’s actually driving today’s pump
VELVET’s earlier rallies have often been tied to specific product launches, including the June surge to its all-time high following a liquidity migration to Aerodrome and the debut of synthetic pre-IPO markets offering exposure to companies like SpaceX. No comparable product announcement appears to be behind this week’s move.
Derivatives data shared by trader Jainu (@jainu9908) on X points to a short squeeze as a contributing factor: 24-hour liquidations showed $863.9K on the short side against $651.4K on the long side, with a further $88.8K in shorts liquidated in the four hours before the post.
The same analysis also pointed to a 27.77% surge in trading volume alongside the liquidation imbalance, framing the combination as consistent with short sellers being forced to buy back into VELVET as the price rose, adding to buying pressure on top of any organic demand.
Trading activity is spreading across exchanges
VELVET’s 24-hour trading volume sits at roughly $51 million, and it’s no longer concentrated on a single venue. Aerodrome SlipStream currently leads with the largest share of volume, followed by a mix of centralized and decentralized platforms including PancakeSwap v3 on BNB Chain, Bitget, and Gate.
Notably, Binance Alpha, Binance’s platform for surfacing newer and higher-risk tokens ahead of a potential full listing, has also picked up VELVET/USDT trading, putting the token in front of a considerably larger pool of traders than it had access to during its earlier rallies.
Its inclusion on Binance Alpha doesn’t guarantee a full Binance listing, but it does mark a meaningful jump in visibility for a token that started the year trading for a few cents.
A volatile token, not a steady climb
Between the short squeeze mechanics and VELVET’s thin, concentrated supply, this rally looks closer to the token’s usual pattern than a break from it.
VELVET has built a track record of exactly this kind of move: a fast pump driven by a specific, often technical catalyst, followed by a correction that gives back a large share of the gains once the forced buying or short covering runs its course.
For a token that’s already round-tripped from under $0.02 to over $2 and back multiple times this year, a 155% weekly gain is notable, but it’s also consistent with how VELVET has traded all along: in sharp bursts rather than a sustained trend.
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