Velocity is a critical tool for release planning. It enables the Product Owner to determine how many Sprints it will take for the team to achieve a desired level of functionality that can be released. This enables the Product Owner to manage stakeholder expectations and make informed decisions about the timeline for a release.
Overall, velocity is a vital metric in Scrum that helps teams to improve their productivity, make informed decisions, and plan effectively. By tracking their velocity, Scrum teams can continually refine their process and deliver high-quality products to their stakeholders.