Velvet Surges on Renewed Pre-IPO Hype and Leveraged Trading

Velvet (VELVET) has surged by over 20% in recent days due to renewed hype around its synthetic pre-IPO products, particularly its exposure to SpaceX and high-profile AI companies.

The narrative behind Velvet's price increase is driven by the introduction of tokenized, leveraged exposure to firms like SpaceX, OpenAI, and Anthropic through its terminal. This has attracted speculative traders and media attention, leading to amplified volatility.

As a result, Velvet emerged as the top performer in the top-100 at roughly the same time window, up more than 20% on the day while majors like BTC and ETH were flat to down.

The move has also sparked leveraged trading activity, with some traders setting up long or short positions on perpetual futures. However, this has also led to concerns around supply, with team-linked wallets and market maker DWF Labs wallets sending VELVET toward exchanges, and a potential short-term supply overhang due to the Gem Mining airdrop.

This mix of bullish story plus rising supply often produces sharp but choppy moves, as seen in Velvet's roughly 4.20 percentage point move over the last 26 hours.