VELO token grew by 1100% in 3 months — why investors call it “Asian XRP”? And will the asset grow further?

Velo Labs Technology’s native token soared 71,19% — from 0.008447 to $0.01446 — and keeps on rising. A year ago, the company announced a partnership with Visa, after which internet users started comparing VELO with another financial asset, XRP. What is thconnection, why is the token growing, and what are its prospects? We discuss these questions below.

Asian XRP? What exactly is Velo?

Velo is a next-generation financial protocol for business. The project was launched in September 2020 and founded by Chatchaval Jiravanon, who is still chairman of the company. He is also the founder of Aeon Thana Shsap, Thailand’s largest consumer finance company,and the owner of Fortune Magazine in the United States

According to the official site, he manages Velo with vice chairman Tridbodi Arunanondchai and CEO Mike Cowans. The mission of the company is to connect businesses and individuals with a global pool of funds to supercharge the velocity of money through seamless financial services powered by their Web3 ecosystem.

The team achieves their goal with the following features and sub-projects:

• Quantum. A blockchain-powered remittance highway. Allows end users of each partner firm to access the benefits and services of other partner firms that are part of the Velo Network. Offer lower fees, faster transactions, and broader coverage to end users. For institutions.
• Universe. A multi-chain decentralized exchange. For global market traders. Will be launched in 2023.
• Nova Chain. An affordable universal blockchain network. For token issuers.Will be launched in 2023 .
• Orbit. A crypto payment app. For small businesses. Will be launched in 2023.
• Warp. A multi-network cross-chain bridge. For individuals.

The company has its own token, VELO. It is designed to transfer value over the Velo network and ensure stable settlement. The coin’s utility stems from its dual function as both collateral and an entry requirement into the Velo ecosystem. Online traders are calling VELO “The Asian XRP,” which was also created to become “the most practical cryptocurrency for application across the financial service space.” The company itself calls its coin a “digital asset for global economic utility.”

Why is Velo rising?

Unlike most cryptocurrencies, which began to grow only in early 2023 due to an improved economic situation in the U.S., VELO began to become stronger at the end of 2022. The main reason was the listing on three exchanges at once: Huobi, Crypto.com, and PolinieX.

After the listing, the asset grew at once by 171,22%, from $0.001077 to $0.002921, but VELO finished January at $0.002571 (138,72%). The next rally started only in February, which is most probably due to the fact that the company renewed its website and updated its whitepaper.

The Fed’s announcement of a rate rise (from 4,5% to 4,75%), as well as the sudden rise in Bitcoin, which pulled the whole market, could also have influenced the growth. We reported on the reasons for the latter rally here.

On February 23, VELO got into Google Trends, which was also the reason for the growth. This probably happened after a post by popular investor, mentor, and analyst ElonTrades, who predicted x100 growth for the asset in the long term.

Current price

As of this writing, VELO is trading at $0.01353, up 51,75% from a day ago.

You have not selected any currency to display

Overall, from the time of listing in December to this day, the asset has increased by 1156.27%. However, this is not the best performance. The token’s historical high was in March 2020. At that time, VELO broke the $1 bar and traded at $1.8761. The difference from the current value is 13766,22%.

If you had bought when the cryptocurrency was released and held until the historic high, you would have earned x4,2 of the invested amount at the peak. But if you had held on until now, you would have lost 32 more.

Where to buy profitably?

You can buy VELO on 11 exchanges. Among them: Bithumb, KuCoin, Gate.io, Indodax, MEXC Global, Huobi, Crypto.com, Bitazza, Poloniex, Bitfinex, and OKX.

According to CoinGecko, the cheapest asset is traded on the Bithumb exchange, paired with BTC. On the platform, you can buy the token for $0.01233571.

The highest volume of trades for a day is also on the Bithumb exchange, in pair with KRW (the KingDeFi token). For February 24, the index was $36,122,890. In the pair VELO/KRW,  the token trades at $0.01316096.

Will the token grow further?

Over the past three months, VELO has only grown. According to some users, the growth of the asset may attract the attention of other exchanges, which may agree to list it on their platform.

The total trading volume of VELO in the last 24 hours exceeded the market capitalization of Actva — $87M vs. $63M. In this regard, ElonTrades believes that the next token listing will be on Binance.

A coin burn could also affect the increase in the value of the token, but that has not yet been announced. The developers can create a total of 30B VELOs, 24B of which have already been released. However, only about 5B coins are in circulation; the rest are blocked for now. According to Token.Unlocks, the unlock date is also not yet known.

On February 21, crypto_pk trader posted that the whales would ramp VELO to $0.025, which happened.

Now some investors believe that the next VELO stop will be at $0.2-0.3.

According to cryptocurrency alpha hunter AVERYETH, when the whole market is in decline, it is very important to find a strong asset that is not subject to general volatility. In his opinion, VELO belongs to such tokens.

However, things may not go according to analysts’ plans. Therefore, do not consider the above information as economic advice. We will continue to watch VELO, and you should do your own research before investing.