Venice Token (VVV) has demonstrated strong performance with a 13% gain over the past day, trading around $13 at press time. According to reports from AMBCrypto, the asset has recorded a sharp shift from selling pressure to net buying activity in recent days. Between May 5th and 6th, investors sold approximately $4.38 million worth of VVV, but the trend has since reversed with buyers accumulating roughly $372,000 worth of the asset, signaling renewed market confidence.
The perpetual market has reflected similar positive trends, with capital inflows rising alongside a positive funding rate. As reported by AMBCrypto, data from CoinGlass showed that nearly $21 million in fresh capital entered VVV's leveraged market, while the Weighted Funding Rate climbed to approximately 0.0170% during early trading hours. This convergence in buying activity across both spot and perpetual markets suggests aligned demand that continues to strengthen the asset's market structure and bullish momentum.
Criticism has persisted around Venice AI's dual-token structure, particularly the role of DIEM, a separate token used to pay for AI compute credits. According to AMBCrypto, some market participants argue that the design adds limited direct value capture for VVV and could introduce long-term sell pressure if operational costs rise. One critic noted that using DIEM to access compute injects zero new cash into the company unlike pro subscriptions, potentially requiring the company to sell VVV to cover cash needs.
Erik Voorhees, co-founder of Venice Token, responded to concerns, framing DIEM as a deliberate design choice aimed at solving pricing instability within the original VVV model. As reported by AMBCrypto, he explained that when VVV launched, variable price, supply, and inability to guarantee fixed quantities of allocation made it too volatile for serious users. Both VVV and DIEM operate under a mint-and-burn mechanism designed to balance issuance with demand-driven consumption.
Despite criticism surrounding its tokenomics structure, VVV has continued to rally as community sentiment gradually improves. According to AMBCrypto, after trending lower since May 2nd, bullish sentiment within the community has rebounded sharply. Press time market data shows that roughly 84% of participants now hold a bullish outlook on VVV, based on approximately 13,800 votes, reflecting sustained investor confidence and commitment. Recently, Strike Robot announced a partnership with VVV to power its humanoid robots with private and uncensored AI systems designed for vision processing and decision-making.
![Venice Token [VVV] Breaks Out Above $12, Targets $14](/_next/image?url=https%3A%2F%2Fimages.askfuzz.ai%2Farticle_images%2Fvenice-token-vvv-surges-20-on-tokenomics-updates.webp&w=3840&q=75)
