A recent purchase of Velodrome (VELO) tokens by US Congressman Mike Collins has triggered a significant surge in trading volume, jumping 67% in just 24 hours. This sudden interest in VELO tokens can be attributed to the politician's public disclosure of his investment, signaling his support for the cryptocurrency.

Velodrome Finance, an Automated Market Maker (AMM) on Optimism, utilizes VELO tokens as a utility token for liquidity providers. The tokens can also be locked for governance and voting purposes, rewarding participants with protocol trading fees. According to CoinMarketCap data, VELO's trading volume reached $2.4 million, a substantial increase from its previous levels.

Congressman Collins' purchase of VELO tokens, worth between $1,001 and $15,000, makes him the first documented politician to invest in the cryptocurrency. Although the price of VELO has fluctuated since his purchase, the increased trading volume is likely to contribute to a price recovery in the near future.

This development reflects a growing interest in cryptocurrencies among US politicians. Congressman Collins has previously invested in Ethereum (ETH), and other politicians, including Donald Trump and President Joe Biden, have also shown support for digital assets. Trump's campaign team is even accepting crypto donations, while Biden's team is seeking guidance from crypto industry leaders on proactive policies.

In conclusion, the surge in Velodrome's trading volume following Congressman Collins' investment highlights the growing appeal of cryptocurrencies among US policymakers. As the 2024 presidential elections approach, it will be interesting to see how candidates' stances on cryptocurrencies influence the market and shape the future of digital assets in the US.