Speedy Arbitrage Gains Disappear as VELVET Arbitrage Ends

The arbitrage opportunity with VELVET on the Binance Smart Chain (BSC) concluded approximately 29 seconds ago. At the moment, VELVET is trading at 8.19% in a short position, with the MEXC exchange listing a price of 0.08139 and Dexscreener showing a slightly lower price of 0.07523. Considering the data, the arbitrage involved the discrepancy between the two prices across different platforms, which was exploitable for quick profits. The total market cap on BSC is around $48.83K, with a significant trading volume of over $1.56 million in the last 24 hours. The liquidity depth indicates substantial sell and buy limits, and deposit/withdrawal options on BSC are active with confirmation of successful deposits and withdrawals. The rapid nature—averaging 33 seconds in duration—suggests that such arbitrage windows are highly fleeting, requiring swift execution and monitoring of multiple data points. The short-term profits depend heavily on the ability to act fast before the price gap closes, which it evidently did in this instance. Given that the arbitrage has ended, future opportunities might arise if similar price discrepancies reoccur. Traders interested in arbitrage should keep a close watch on exchange spreads, liquidity pools, and transaction times, especially during moments of high volatility or network congestion that often create temporary mispricing. In conclusion, while short-lived arbitrage like this can yield quick gains, they come with inherent risks such as slippage, transaction fees, and timing errors. For active traders, leveraging real-time data feeds and rapid execution tools is essential to capitalize on such fleeting profit windows.