The user base of Venice AI has surged, alongside continuous token burns.

Written by: invezz

Translated by: AididiaoJP, Foresight News

The price of Venice Token has been steadily rising this month, reaching a new all-time high. On Sunday, the trading price of the VVV token was $15.2, just a few points away from its historical peak of $16.65. It has increased nearly 1500% since the low point last December.

Note: As of May 12, VVV has surpassed its previous all-time high, peaking at $19.48.

The price of Venice Token surges due to increased usage and token burns

In the past few weeks, AI tokens have performed relatively well. For example, the Bittensor (TAO) token has risen by 9% in the past seven days. NEAR, ICP, Render, Virtuals, and FET have all seen increases of over 10% during this period.

In contrast, Venice Token has surged by over 65% during this time, making it one of the best-performing tokens in the industry. This increase is attributed to its status as one of the few top projects that genuinely bring blockchain technology into the real world.

First and foremost, Venice AI operates a platform that integrates mainstream AI models like DeepSeek, Grok, ChatGPT, and Claude. After users input their queries, the platform selects the best model while emphasizing privacy protection.

Venice adopts a freemium model. Users can access the platform for free or pay for tiered subscription fees ranging from $18 per month to as high as $200.

The VVV token has seen significant increases this year, benefiting from ongoing hype around AI, which has propelled top assets to new all-time highs. For instance, AI-related companies such as Sandisk, Micron, and Western Digital have led the S&P 500 index this year.

Similarly, the valuations of AI companies have skyrocketed, with analysts raising the true valuation of Anthropic from $380 billion a few months ago to over $1 trillion. Its annual recurring revenue (ARR) has surged to over $30 billion.

As a result, traders believe Venice should also achieve a similar valuation as its business continues to grow. SimilarWeb data shows that the Venice website attracted 26 million visitors from February to April, a year-on-year increase of 15%. Its monthly visits have risen to over 8.8 million.

Accelerated token burns

Another reason for the increase in the VVV price is the improvement in its tokenomics as the network continues to burn tokens. Data shows that the network is constantly reducing the circulating tokens. This trend will continue as the burn rate of fees increases. For example, the lowest subscription plan will burn tokens worth $2 each time.

Therefore, according to data from its website, tokens worth over $166,000 were burned last month, up from $146,000 the previous month. Approximately 42% of the circulating supply has now been burned.

Meanwhile, investors are buying VVV tokens, as its yield has now risen to 14%. Users can mint DIEM tokens using VVV tokens, allowing them to earn a daily credit of $1 for the Venice AI platform.

This data explains why the trading volume of the VVV token on exchanges has continued to rise this month. In addition, open interest in futures has also been increasing, currently at its highest level this year.

Technical analysis of Venice Token price

The daily chart shows that the price of the VVV token has been oscillating in a narrow range between $0.9745 and $4.90 for an extended period. It has even formed a cup and handle pattern, a common bullish continuation signal in technical analysis.

This consolidation phase is part of the accumulation phase in Wyckoff theory. Therefore, the token has now entered the markup phase, which is typically characterized by FOMO (Fear of Missing Out).

The token is currently above all moving averages, indicating that the bulls are still in control. However, this also brings about the risk of mean reversion, where the asset may revert to its historical mean.

This possibility of mean reversion exists, as the token has become severely overbought. Thus, there is a chance the token could correct and potentially retest the critical support level of $10.