- Velo has joined the growing list of protocols that leverage BlackRock’s short-term tokenized treasury funds for their ecosystem offering.
- VELO is one of today’s biggest losers, having fallen more than 22% over the last 24 hour after a halt to the good run it had enjoyed this month.
Velo Labs the team behind Velo Protocol [VELO]BlackRock’s tokenized fund is now being used by a new crypto-native company to develop innovative financial products for its customers.
A blog dated September 10th, 2014 stated that the USDV stablecoin was backed by a BlackRock USD Institutional Digital Liquidity Fund.
It is the strategic goal to enhance both its utility as an asset that can be used for storing value, and also appeals to investors who are looking for a stablecoin with a yield.
Market response
Velo Labs’ strategic goal to grow its market was seen by many as the initial spark of interest in Velo’s announcement.
However, the price movement of Velo’s utility coin, VELO after the announcement suggests a classic “sell the news” event.
Speculators profited immediately after the release of the news, halting a significant month-long price rise that saw VELO make gains.
CoinMarketCap
Velo is a notable addition to the list of crypto-projects that use BlackRock’s Tokenized Fund to launch retail offerings, or to provide yield-generating options.
In March, Ondo Finance revealed The BUIDL funds will receive the backing assets from its U.S. Treasury backed Token (OUSG).
Ondo explains its decision to transfer $95 Million to BlackRock Tokenized Fund will make OUSG more usable Instant settlement is possible.
Last week, Layer 1 blockchain project Injective launched a tokenized index for the BUIDL Fund The fund is aimed to give retail users an opportunity to learn about it.
Technical analysis of VELO/USDT
TradingView data indicates that VELO fell overnight from $0.0155, to $0.01436, and then began consolidating.
VELO, despite its stabilization after a sharp fall from a high intraday of $0.0193 is still down 15 percent in the last 24-hours.
TradingView
The VELO/USDT has attempted to make a recovery move in the past few hours after turning its previous resistance at $0.0143 immediately into support.
The Relative Strength Index hourly (RSI), which was pictured last at 27, hovers under the oversold area, indicating that VELO faces significant downward pressure.
TradingView
You can read more about it here Velo’s [VELO] Price Prediction 2024–2025
A close daily above $0.015 suggests a possible continuation of the previous uptrend. This trend is threatened by VELO’s ceiling at around $0.02 where it struggled during June.
Continued losses below current support however will signal that the upward trend is broken and bring to mind the stronger support level of $0.011 which was last tested in August.
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Source: ambcrypto.com
