Over the past year, AI Agents have emerged as one of the most prominent trends in Web3. From automated research and intelligent trading to portfolio management, an increasing number of projects are exploring practical applications of AI in on-chain finance. As users demand greater operational efficiency and improved asset management experiences, DeFAI (DeFi + AI) is evolving from a concept into a competitive product space. Velvet entered the market against this backdrop, reigniting industry interest in whether AI can become the core gateway for next-generation DeFi.
Why Is VELVET Attracting Market Attention?
In recent years, the DeFi ecosystem has expanded rapidly, but product experience hasn’t kept pace. For everyday users, a complete on-chain investment often requires frequent switching between wallets, DEXs, data platforms, yield protocols, and cross-chain tools. The learning curve and operational costs remain high.
Velvet aims to change this experience. According to official sources, the platform now supports BNB Chain, Ethereum, Base, Solana, and Sonic—covering multiple major ecosystems. It has launched a Multi-Agent AI Co-Pilot, enabling users to conduct project research, asset analysis, trade execution, and portfolio management using natural language. The platform reports more than 100,000 users have utilized its products, and over 10,000 strategy vaults have been created, managed by traders, KOLs, and crypto funds.
Rather than simply adding more features, Velvet focuses on integrating research, trading, and management into a unified entry point. This product philosophy signals a shift in DeFi from "feature stacking" to "experience optimization," with market attention moving from protocol quantity to user efficiency.
How Is AI Transforming DeFi Product Models?
AI’s role in the crypto industry is shifting. Early on, the market focused on AI models, compute networks, and infrastructure. Over the past year, however, more projects are experimenting with AI directly participating in on-chain operations. From analyzing token fundamentals and screening yield strategies to executing trades and managing portfolios, AI Agents are increasingly taking over tasks that previously required manual user input.
Velvet’s positioning reflects this trend. By combining the AI Co-Pilot with trading terminals, multi-chain asset management, and strategy vaults, the platform enables users to perform complex operations via natural language, rather than relying on multiple standalone tools. This approach lowers the barrier to DeFi adoption, evolving AI from simply "answering questions" to actively "assisting execution."
This shift is driven by changing user needs. As the number of on-chain protocols and assets grows, information is no longer the scarce resource—what matters is how quickly users can filter information and make investment decisions. For DeFAI platforms, future competition will center on interaction experience, execution efficiency, and product integration capabilities, rather than just the AI model itself.
What Competitive Advantages Does VELVET Offer Compared to Other DeFAI Projects?
As AI Agents become a hot topic, competition in the DeFAI space is expanding from single products to platform ecosystems.
Currently, related projects in the market fall into three main categories: some focus on AI trading bots with automated strategy execution; others provide on-chain data analysis and research tools to help users discover investment opportunities; and a third group aims to build comprehensive platforms that integrate research, trading, asset management, and developer capabilities into a unified system.
Velvet aligns most closely with the third model. In addition to the AI Co-Pilot, the platform offers a multi-chain trading terminal, strategy vaults, and an open API, allowing third parties to create and manage tokenized DeFi strategies. This means Velvet’s goal is not only to serve individual investors, but also to provide infrastructure for trading teams, KOLs, and institutions managing on-chain assets.
From an industry perspective, DeFAI’s future competitive edge may not be limited to AI features. It will depend on who can connect more blockchains, protocols, and developers. As more platforms adopt AI capabilities, ecosystem scale, network effects, and user retention will become the true long-term competitive barriers.
What Challenges Does DeFAI Face? Can AI Truly Drive Mainstream Adoption of On-Chain Finance?
Although DeFAI is a new hotspot in the crypto market, it remains in an early stage, with several hurdles before large-scale adoption.
First, AI’s value depends on high-quality data and precise execution. On-chain markets change rapidly and protocols update frequently. If AI cannot access the latest information or struggles to interpret complex strategies, analysis quality and execution results may suffer. For trades involving real assets, users care more about model reliability than just smooth interaction.
Second, user trust is a key barrier to DeFAI adoption. While natural language interaction reduces operational complexity, allowing AI to execute trades requires robust permission management. Balancing automation efficiency with asset security, and ensuring users understand the basis for AI decisions, are ongoing challenges platforms must address.
Additionally, as more teams enter the space, product homogenization could intensify. Future competition among platforms will depend not only on AI model capabilities, but also on ecosystem partnerships, developer support, and long-term user retention. While DeFAI has entered the product competition phase, it still needs time to develop mature business models.
What Factors Will Determine VELVET’s Long-Term Value?
For DeFAI projects, long-term value is driven more by actual product usage than short-term market sentiment.
Official sources indicate that Velvet has built out AI Co-Pilot, a multi-chain trading terminal, strategy vaults, and API infrastructure, aiming to create a comprehensive ecosystem covering research, trading, asset management, and developer services. As more trading teams, KOLs, and institutions choose to build strategies on the platform, Velvet’s network effects could further strengthen.
Ultimately, platform value depends on real users and developers. Key variables to watch include the pace of multi-chain ecosystem expansion, AI feature iterations, third-party developer integration, and sustained growth in strategy vaults. These factors will not only drive platform activity but also shape Velvet’s long-term competitiveness.
Across the DeFAI industry, the market is shifting from "having AI" to "AI genuinely improving user experience." Platforms that consistently lower adoption barriers and boost investment efficiency are best positioned to gain an advantage in the next phase of competition.
How Can You Stay Updated on VELVET and the DeFAI Market Through Gate?
As AI Agents, DeFAI, and on-chain asset management remain trending topics, projects like VELVET are likely to attract increasing capital attention.
Users can track VELVET’s real-time price, trading volume, market depth, and official announcements on Gate. By monitoring the performance of AI, DeFi, and related sectors, you can observe shifts in market sentiment. Rather than focusing solely on short-term price movements, it’s more valuable to follow product updates, multi-chain ecosystem expansion, developer integration, and actual user growth—these factors are stronger indicators of a project’s long-term potential.
For investors interested in the DeFAI space, it’s important to look beyond individual projects. Monitor the progress of AI Agents, on-chain asset management, and DeFi infrastructure to understand the broader industry evolution.
Summary
VELVET’s market attention stems not just from its AI concept, but from its role in moving DeFAI from proof-of-concept to product competition. As the on-chain financial ecosystem expands, users increasingly need simpler, more efficient investment methods, and AI is evolving from an auxiliary tool to the entry point for on-chain operations.
However, DeFAI is still in its early stages. Future competition among platforms will revolve around user experience, developer ecosystem, product integration capabilities, and value capture mechanisms. For VELVET, the real metric worth watching is not short-term market hype, but whether the platform can build lasting competitive advantages through real-world use cases and ecosystem growth.
FAQ
Is VELVET an AI Project or a DeFi Project?
VELVET is best categorized as a DeFAI (DeFi + AI) project. It combines AI Agents with on-chain trading, asset management, and strategy management to help users enhance their DeFi experience.
How Does DeFAI Differ From Traditional DeFi?
Traditional DeFi focuses on protocol functionality, while DeFAI leverages AI to simplify research, trading, and asset management processes. Users can complete more on-chain operations using natural language or intelligent agents.
What Are VELVET’s Competitive Advantages?
According to its official positioning, VELVET offers not only an AI Co-Pilot, but also integrates a multi-chain trading terminal, strategy vaults, and API infrastructure. The goal is to build a unified platform covering research, trading, and asset management.
Why Is DeFAI Attracting Market Attention?
As AI Agents move from content generation to actual execution, more platforms are exploring AI applications in on-chain finance. Lowering operational barriers and improving investment efficiency are seen as DeFAI’s most promising development directions.
What Key Factors Will Impact VELVET’s Future Development?
In the long run, factors such as product iteration speed, multi-chain ecosystem expansion, developer integration, real user growth, and the evolution of strategy management ecosystems will influence platform competitiveness and market attention.
