A local planning signal
If a team finishes around 25 story points in several comparable sprints, it can use that history to decide how much work to take on next. Velocity is a rough guide, not a promise.
It changes with team membership, work type, interruptions, or the definition of done.
When velocity becomes a target
Treating velocity as a productivity target can make estimates rise without increasing the value customers receive. Comparing teams is misleading because each uses its own point scale.
Use velocity alongside those factors when planning; measure customer outcomes separately.