Erik Voorhees’ Venice AI Propels VVV Token to Alt‑Coin Market Lead
The decentralized AI protocol, launched by former ShapeShift CEO Erik Voorhees, has posted a sharp rally that outpaced most low‑cap assets in the past week.
Market performance
- VVV token – the native utility token of Venice AI – is up roughly 135 % week‑over‑week and 14 % on the day, trading around $4.28. The token’s fully‑diluted valuation now sits near $336 million, a 375 % increase from its November trough of $0.90.
- The broader Venice AI protocol has risen about 350 % from the same November low, signalling renewed investor interest in AI‑driven DeFi projects.
- The companion DIEM token, introduced in September to grant stakers free access to Venice AI models, hit an all‑time high of $672 over the weekend and currently trades near $586, marking a 200 % gain since its debut price.
Background
Venice AI debuted during the surge of “AI agent” projects in January 2025, briefly reaching $9 per VVV token within a week of launch. The subsequent LIBRA token scandal in February 2025 dragged the whole AI‑agent niche down, and VVV fell in line with other low‑cap altcoins.
A year later, the token has reclaimed strength, posting its highest level since August 2025. Protocol‑level metrics – daily active users, model calls, and on‑chain activity – have all reached new peaks. In a recent post on X, Voorhees disclosed that Venice is now processing more than 45 billion large‑language‑model (LLM) tokens per day, double the volume he reported earlier this year.
Why the resurgence?
| Factor | Impact |
|---|---|
| Dual‑token design – DIEM’s utility as a gateway to AI services creates a built‑in demand for VVV, which is used for governance, fees, and additional incentives. | Provides a clear use case and cross‑token network effect. |
| AI demand – Enterprise and developer interest in on‑chain AI inference has grown, especially after recent setbacks in centralized AI offerings. | Drives token‑level usage and revenue for the protocol. |
| Voorhees’ credibility – The founder’s reputation in the crypto community lends additional confidence to investors. | Attracts both retail and institutional participants. |
| Market timing – The broader crypto market has been stabilising after the volatility of early‑2025, allowing speculative capital to flow back into high‑growth niches. | Improves liquidity and price discovery. |
| Risk profile – VVV remains a low‑cap token, meaning price swings can be extreme. Regulatory scrutiny of AI‑related tokens also poses a long‑term uncertainty. | Highlights the need for cautious allocation. |
Analysts note that the 350 %+ rally is not solely price‑driven; the protocol’s on‑chain activity confirms genuine usage. The increase in daily LLM token processing suggests that developers are integrating Venice’s models into decentralized applications (dApps), NFTs, and other Web3 services.
Outlook
If the current growth trajectory continues, VVV could see further appreciation, especially as DIEM holders increasingly leverage the free AI model access. However, the token’s low market cap makes it vulnerable to broader sentiment shifts and potential regulatory actions targeting AI‑related crypto projects.
Key takeaways
- VVV token is up 135 % in the last seven days, trading at $4.28 with a $336 M FDV.
- The protocol’s overall value has climbed roughly 350 % from its November lows.
- DIEM, the access token for Venice AI models, is near its all‑time high, reinforcing demand for VVV.
- Venice AI now processes >45 billion LLM tokens daily, indicating strong on‑chain utilization.
- Growth is driven by a combination of dual‑token economics, renewed AI interest, and Erik Voorhees’ standing in the crypto space.
- Investors should weigh the high upside against typical low‑cap altcoin volatility and emerging regulatory considerations.
The resurgence of Venice AI underscores how AI and DeFi continue to intersect, offering new avenues for token utility while also reminding market participants of the sector’s inherent risks.
Source: https://thedefiant.io/news/defi/erik-voorhees-venice-ai-leads-altcoin-market
