Binance Listing VELO? What Is Velodrome Crypto And Why Is It Exploding?

VELO, the native token behind Velodrome Finance, has surged over 100% in the past 5-hours following a Binance listing announcement.

VELO, the native token behind Velodrome Finance, has surged over 100% in the past 5-hours following a Binance listing announcement. VELO powers the Velodrome DeFi platform, built on the layer-2 ‘superchain’, Optimism.

Following the X post from Binance at 8:13 am GMT, announcing its VELO listing (with seed tag applied), the price instantly shot from around $0.15 to over $0.4. It has since retraced and is now trading between $0.3 – 0.35.

What Is Velodrome And Why Are Many Bullish On It?

Velodrome first launched on June 2, 2022, and Velodrome V2, a full protocol redesign, launched on June 22, 2023. It is a DeFi/DEX platform that offers concentrated liquidity support, dynamic fees, dynamic emissions rate, Velodrome Relay, and enhanced performance and user experience with the dApp.

A blog post released at the time of its V2 launch stated, “Velodrome also serves as the secondary economic engine of the Optimism ecosystem, having contributed over $80M in rewards to projects and users of Optimism

These rewards serve as economic stimulus for the broader ecosystem, accelerating its growth and increasing its resiliency.”

Built on Optimism, the platform offers decentralized derivatives trading, allowing users to create, trade, and settle derivatives contracts transparently on-chain. The protocol is designed to enable token swaps and fee generation (from users) by attracting liquidity.

On September 1 last year, Velodrome announced that it had received 1.25 million OP to support the Optimism ecosystem by expanding the ‘Optimistic Vision’, increasing governance participation, and enabling ecosystem growth.

EXPLORE: Solana vs Ethereum: Which is Better in 2025?

Velodrome Is One Of The Most Rewarding DEXs For Users

One of the most insane charts in crypto is DEX revenue

And it becomes even more insane when you consider at the % of revenue shared with holders/stakers/lockers

Aerodrome: 100% Uniswap: 0%Pancakeswap: 70%Curve: 50%GMX: 30%Velodrome: 100% pic.twitter.com/gAAA1td1mK

— slappjakke.eth 🦇🔊 (@Slappjakke) November 21, 2024

One of the standout features of the Velodrome platform is its 100% revenue share with holders. It returns 100% of its value to voters and liquidity providers. This is done in two ways.

Firstly, voting incentives: VELO token holders vote on which pools to earn trading fees from.

Secondly, supply-side fees: The remaining trading fees are earned by the pools’ unstaked liquidity providers.

Across all the major chains and DEXs, only Aerodrome (on Base) offers 100% revenue share with its users. The market leader, Uniswap, offers 0% revenue share to its community, while Pancakeswap offers 70%, Curve 50%, and GMX sits at 30%.

Despite the Binance listing and 100% candle, VELO is valued at $290 million by market cap. To put that into context, Uniswap’s native token, UNI, has a market cap of over $10 billion.

Uniswap is currently the undisputed king of the DEXs ($1.5 trillion in cumulative volume). However, VELO being valued $9.7 billion less than UNI while offering 100% revenue on one of the leading Ethereum Layer-2 chains makes it seem massively undervalued.

BONUS: Wall Street Pepe (WEPE) Looks Set To Be The Biggest Presale Of This Year With Record Raise

$10,000,000 raised. It's happening fr

Unstoppable. Vibing. Heading to the moon. 🐸⚔️ pic.twitter.com/30dilFb53g

— Wall Street Pepe (@WEPEToken) December 12, 2024

Just yesterday, Wall Street Pepe (WEPE) had just surpassed $7 million in early stage funding in a little over a week. Less than 24-hours later and it has doubled, blasting past $14 million with one degen whale buying over $260,000 worth in a single transaction.

Previously, there was much speculation that WEPE could raise $20 million before 2024 comes to a close but with such huge investment continuing to pour in day after day, $50 million has to be a target before the year is up.

The utility on offer with Wall Street Pepe seems to drive the frenzy behind this meme