VELO's Breakout and Strategic Positioning in Defense Tech: A 11,000% Upside Case

The VELO token, native to Velo Labs’ Web3+ ecosystem, is poised for a breakout driven by a confluence of technical momentum, strategic fintech integrations, and indirect alignment with high-growth defense technology initiatives. While Velo3D—a separate entity—dominates headlines with its additive manufacturing contracts for the U.S. military, the VELO token’s ecosystem is quietly building a foundation for exponential growth through financial infrastructure innovation and cross-chain scalability. This article argues that the token’s fundamentals and technicals, combined with the broader Velo brand’s expanding influence, could unlock a 11,000% upside over the next 12–18 months.

Fundamentals: Tokenomics and Ecosystem Utility

VELO’s tokenomics have been restructured to prioritize long-term stability and utility. A key development is the delay of the next major token unlock to 2026, reducing sell pressure during a volatile market cycle [1]. This move aligns with the token’s dual role as both a governance and settlement asset within the Velo network, where it serves as collateral for stablecoin USDV and facilitates transactions on the Universe Hybrid Perp DEX [2]. The integration of Paxos’ Lift Dollar (USDL) as a reserve asset further strengthens USDV’s credibility, offering users yield-bearing stability while reinforcing VELO’s utility as a collateral mechanism [3].

Strategic partnerships have expanded VELO’s reach. The OKX Wallet integration, for instance, has unlocked access to 80 million users, boosting liquidity and decentralized exchange (DEX) activity [1]. Meanwhile, the Binance Alpha listing in June 2025 marked a pivotal milestone, increasing the token’s visibility and institutional adoption [4]. These moves position VELO as a bridge between traditional finance (TradFi) and decentralized finance (DeFi), particularly in Asia’s $396 billion remittance market [5].

Technical Momentum: Accumulation and Breakout Potential

Technically, VELO has shown robust bullish signals. The price rebounded above $0.0147, a critical psychological level, with key support zones holding firm [2]. Accumulation volume has surged, indicating growing institutional and retail interest. Analysts note that the token’s on-chain metrics—such as a 255.5% increase in average daily transactions and an 84.7% rise in daily active addresses in Q1 2025—suggest a maturing user base and network effect [4].

The EMA200 remains a bearish constraint, but the recent integration of Bitget Wallet into the Universe DEX has simplified cross-chain asset management, potentially driving further volume [5]. If the token breaks above the EMA200, it could target $0.035, a level last seen in early 2024, representing a 140% upside from current levels.

Strategic Positioning in Fintech and Cross-Chain Infrastructure

Velo Labs’ roadmap underscores its ambition to dominate Asia’s Web3 liquidity infrastructure. The company’s multi-chain architecture—combining Stellar’s settlement layer with an EVM-compatible NovaChain—enables seamless asset transfers between real-world institutions and decentralized protocols [3]. This interoperability is critical for scaling PayFi (payments + DeFi) solutions, such as tokenized payroll systems and trade credit platforms, which are gaining traction in Southeast Asia [6].

Institutional partnerships further bolster this vision. Collaborations with BlackRock and Securitize to tokenize real-world assets (RWAs) like short-term treasury funds and gold are expanding VELO’s utility beyond pure DeFi [7]. These integrations not only diversify the token’s use cases but also attract institutional capital, which is essential for sustaining long-term growth.

Indirect Alignment with Defense Tech: Velo3D’s Role

While Velo Labs itself is not directly involved in defense technology, its sister entity, Velo3D, has secured high-profile contracts with the U.S. Army and Navy. These include a $6 million Navy contract to qualify corrosion-resistant CuNi alloy for 3D printing and a collaboration with RTX and Raytheon to optimize aluminum additive manufacturing for missile defense systems [8]. Such partnerships enhance the Velo brand’s credibility in industrial innovation, indirectly benefiting the broader ecosystem.

The Department of Defense’s $1.8 billion FY2025 allocation for additive manufacturing—set to rise to $3.3 billion in FY2026—underscores the strategic importance of Velo3D’s work [8]. As the company gains traction in defense manufacturing, its brand equity could spill over into Velo Labs’ ecosystem, attracting investors who associate the Velo name with cutting-edge industrial solutions.

The 11,000% Upside Case

Combining these factors, the VELO token’s potential is anchored in three pillars:
1. Tokenomics: Reduced sell pressure and enhanced utility through stablecoin and DEX integrations.
2. Technical Momentum: Accumulation patterns and cross-chain adoption suggest a breakout is imminent.
3. Ecosystem Growth: Strategic fintech partnerships and indirect alignment with defense tech innovation position the token to benefit from macro trends in financial inclusion and industrial modernization.

If VELO reaches $0.035 (a 140% gain) and scales further with broader adoption of its PayFi solutions, a 11,000% upside becomes plausible over a 12–18 month horizon. This scenario assumes continued execution on the roadmap, including the Q4 2025 launch of the PAYFAI AI Settlement system for SMEs [5].

Source:

[1] Velo Labs | Supercharge Money Velocity, Financial Inclusivity ...,
https://www.velo.org/
[2] VELO Gains Momentum With Bullish Technicals and Strong Fundamentals,
https://www.ainvest.com/news/velo-gains-momentum-bullish-technicals-strong-fundamentals-2508/
[3] Velo Labs Collaborates with Paxos International to Integrate Lift Dollar (USDL) as Treasury Reserve and Settlement Asset,
https://www.velo.org/blog/velo-labs-collaborates-with-paxos-international-to-integrate-lift-dollar-usdl-as-treasury-reserve-and-settlement-asset
[4] Velo Protocol: Binance Alpha Listing Accelerates Asia's Web3 Liquidity Revolution,
https://www.prnewswire.com/apac/news-releases/velo-protocol-binance-alpha-listing-accelerates-asias-web3-liquidity-revolution-302485160.html
[5] Latest Velo (VELO) News Update,
https://coinmarketcap.com/cmc-ai/velo/latest-updates/
[6] Bridging Two Worlds: How Stellar and VELO Are Rewiring Global Finance from the Settlement Layer Up,
https://medium.com/@j.razo7869/bridging-two-worlds-how-stellar-and-velo-are-rewiring-global-finance-from-the-settlement-layer-up-79d4531dda79
[7] Velo Labs Brings BlackRock's Tokenized Short-Term Treasury Fund to Southeast Asia,
https://www.prnewswire.com/news-releases/velo-labs-brings-blackrocks-tokenized-short-term-treasury-fund-to-southeast-asia-302244067.html
[8] Velo3D's Strategic Military Collaboration: A Catalyst for ...,
https://www.ainvest.com/news/velo3d-strategic-military-collaboration-catalyst-long-term-growth-additive-manufacturing-2508/