VVV surges 213% in one month: supply is about to shrink significantly

Venice Token (VVV) has increased by 21.54% in the past 24 hours, currently trading at $3.33. This is just a glimpse of the recent strong performance of this new project — a 72.82% increase over 7 days and a 213.27% rise over 30 days. As a new coin that will only be listed for trading in January 2025, why has VVV been able to quickly attract attention in the crypto market? The core driving force comes from an upcoming significant policy adjustment.

Reduced Token Supply as a Key Catalyst

According to the latest news, the Venice project has confirmed that starting February 10, the annual issuance of VVV tokens will be reduced from 8 million to 6 million, a 25% decrease. This policy adjustment is only about a month away from implementation, and the market seems to have already priced in this expectation.

Why Is the Market Optimistic About the Supply Reduction?

A decrease in token supply is generally viewed as a positive signal by the market, mainly due to:

• Improved Inflation Expectations: Reducing the annual issuance from 8 million to 6 million means less new supply pressure, helping to ease inflation concerns.
• Enhanced Scarcity: With a fixed total supply, slowing down the issuance rate directly increases the relative scarcity of the token.
• Long-term Value Support: The reduced supply provides a more solid fundamental backing for the token’s price.

Exceptional Performance of the New Project

Although VVV is a new project that will only be listed in January 2025, its market performance has already been quite remarkable. According to the latest data, VVV’s current market cap is approximately $145 million, ranking 234th in the cryptocurrency market cap list. Its 24-hour trading volume reaches $22.5 million, indicating a highly active market participation.

From a personal perspective, this performance reflects the market’s emphasis on improvements in token economics. In the current crypto market, optimizing supply-side factors often receives positive responses from investors, especially when the improvements are significant (a 25% reduction) and the implementation timeline is clear.

Summary

VVV’s recent surge is not without cause but is based on clear fundamental improvements — specifically, the upcoming 25% reduction in the token’s annual issuance. Although this policy adjustment will only be officially implemented on February 10, the market has already priced it into the current price. As a new project, VVV has achieved a 213% increase within just one month, indicating strong market recognition of its tokenomics optimization. Moving forward, it will be important to observe whether this upward momentum continues after the policy takes effect in February or if profit-taking leads to a correction.