March 25, 2023

Disclaimer: The datasets shared in the following articles are compiled from a set of online sources and do not reflect AMBCrypto’s own research on the topic

VET has been on a steady downward trend since the beginning of 2022. This drop can be attributed to the crypto winter. At press time, the altcoin was trading at $0.024, down 6% over the past 24 hours, according to the data. In fact, during the aforementioned period, the market cap was $1.7 billion and the transaction volume was $94 million.

The idea of ​​buying cryptocurrencies because the price is only a dollar is tempting, but not smart. Then again, with the way the market works, it’s questionable whether most financial decisions are wise. Regardless, it’s worth keeping an eye on VeChain. in case.

In this article, we will analyze the factors that drive the price of VET and the factors that influence the above-mentioned prices. Also, the factors that may affect it in the future so that investors can make an informed decision.

About the platform

In 2015, Lu Shun, CIO of Louis Vuitton China, founded VeChain. It was founded to upend traditional business models and revolutionize the way global companies manage supply chains.

The company has partnerships with luxury brands such as Louis Vuitton, BMW, Big Four audit firm PwC and Walmart. Recently, VeChain entered into a multi-year agreement with the UFC. The deal is worth $100 million.

VeChain’s consensus protocol is different from traditional proof-of-work and proof-of-stake protocols. VeChain uses a Proof of Authority consensus model. The protocol requires relatively low computing power and focuses more on integrity and quality. Compared to traditional models, this consensus model is quite centralized.

Although VeChain is headquartered in Singapore, a large part of its team and connections are in China. Almost half of VeChain’s partners are Chinese companies. The customer concentration in China is so high that more than half of the VTHO demand comes from a single customer – Walmart China. However, given the Chinese government’s crackdown on cryptocurrencies and frequent trade wars with the West, this so-called Chinese label may not be in their best interests. These factors cast a cloud over the overall sustainability of the project.

After changing its name to VeChain Thor and subsequently launching its own mainnet in 2018, VeChain moved to retail-oriented products such as decentralized applications (dApps) and e-NFTs. The move may not be in their best interests. data Negligible activity for VeChain dApps from DappRadar, although the company give up The gas cost of the dApp. These businesses could be distracting, especially as competition intensifies from industry giants such as IBM and SAP, which have begun offering enterprise-focused blockchain products.

resource: VeChain Statistics

In fact, the data comes from VeChain Statistics revealed a disturbing drop in its mainnet activity.In addition, the data purchased by see VeChain Indicates that VeChainThor transactions have also been steadily declining. It can be seen that the daily burn rate of VETHO, the token required to facilitate VET transactions, continues to decline – a sign of the decline in VET transactions.

resource: see VeChain

VeChain was in the news back in May 2022 when it gave Terra LUNA developers up to $30,000 in grants to migrate their Tier 1 chains to VeChain after the terra crash.

By the end of the first quarter of 2022, there was a brief rally in the price of VET. The token surged all the way to $0.089 after VeChain announced its partnership with Draper University, which required scholarships and the Web3 accelerator program. However, the market crash in May caused the price of VET to drop to $0.024.Prices fail to recover from bearish trend despite news of new partnerships with Amazon Web Services and financial institutions in Q1 Report From the VeChain Foundation, it shows a healthy balance sheet.

In 2020, PricewaterhouseCoopers It is estimated that blockchain technology could add $1.76 trillion to global GDP by 2030 through improved tracking and tracing. PwC’s economic analysis and industry research indicates that the tracking and tracing of products and services has an economic potential of $962 billion. Investors will be eager to see how PwC’s blockchain partner VeChain benefits from it.

Global market intelligence firm IDC released a report in 2020. According to this, by 2025, 10% of supply chain transactions in the Chinese market will use blockchain. This could benefit VeChain as it is the leading blockchain company catering to supply chain solutions and given its significant presence in China. James Wester, Research Director Global Blockchain Strategy IDC states that,

“This is an important time for the blockchain market, as businesses across markets and industries continue to increase investment in the technology. The pandemic has highlighted the need for more resilient and transparent supply chains”

according to a Report According to data released by, the global supply chain management market size is expected to reach USD 42.46 billion by 2027, growing at a compound annual growth rate (CAGR) of 10.4% from 2021 to 2027. Experts point out that significant opportunities for the integration of blockchain technology are expected in supply chain management software during the period. As a leading blockchain company serving supply chain management, VeChain can benefit from it.

it is report In July, VeChain will launch a solution for luxury brands that often find cheap knockoffs being sold illegally on the primary and secondary markets. VeChain will embed its proprietary chipset in luxury goods, which will help manufacturers track their inventory and monitor sales in real-time on the blockchain. In addition to this, customers will be able to use the mobile app to verify the authenticity of their purchases. The app will also provide additional information, such as the carbon footprint associated with their purchases and the stories behind their products.

On August 10, VeChain and global logistics technology company OrionOne, Announce Integrate partnerships. The joint venture aims to combine VeChain ToolChain with Orion’s best-in-class logistics platform to provide customers with an efficient way to leverage blockchain technology in their businesses without having to spend a lot of money on network infrastructure. Commenting on this new partnership, OrionOne CEO Tommy Stephenson said: “When it comes to blockchain and supply chain, there is only one game in town and that is VeChain. No other entity can compete with them low cost, rapid deployment and ease of use competition.”

On August 19, VeChain Foundation Announce Via Twitter, the VeChainThor public testnet has been successfully updated to accommodate VIP-220, also known as Finality with One Bit (FOB). The update implements a deterministic gadget that allows the network to run a dual consensus mode simultaneously, Satoshi Nakamoto and Byzantine Fault Tolerant (BFT) consensus. This move saves VeChain from the hassle of completely replacing its Proof of Authority consensus mechanism. Deterministic gadgets help blockchains execute transactions optimistically and commit only after they have been fully verified.

The developers have clarified that FOB has advantages over existing deterministic gadgets that follow a view-based model that follows Byzantine Fault Tolerance (BFT) algorithms, as nodes in FOB are less likely to be affected by network failures.

The update will also help VeChain reduce the complexity of its current proof-of-work consensus protocol, thereby minimizing potential risks caused by unknown implementation errors, while maintaining the availability and robustness of the network.

In early June, VeChain has describe Block finality is “an indispensable property of modern blockchain systems, as it provides absolute security for blocks that meet certain conditions.”

resource: Vet/USDTransaction view

The price of VET has been on a downward trend since April this year. It is clear from the VET/USD chart that VET has been facing significant resistance at the $0.034 level since it dipped below $0.039 in May this year. The cryptocurrency traded sideways in a range-bound pattern between mid-June and July, with key support at the $0.021 level. Near the beginning of August, the pair finally broke above the three-week resistance at $0.027 and rose 24% all the way to $0.034 on Aug. 13.

However, the price has since retreated to $0.024, which could also act as a new support level, although this will only be confirmed after a few retests. The price of VET is unlikely to return to where it was trading before the broad market sell-off in May.

VeChain Token Economics

Token minting predates VeChain’s rebranding, and as such, numbers have been converted from VEN to VET.

VeChain initially minted 100 billion VET, which was distributed as follows:

  • VeChain Foundation retains 22 billion VET
  • 5 billion VET provided to project team members
  • 23 billion VET flows to corporate investors
  • 9 billion VET goes to private investors
  • 27.7 billion VET sold in crowdfunding
  • VeChain Foundation Burns 13.3 Billion VET as Part of Token Sale Refund Process

2025 veterinary price forecast

Cryptocurrency experts at Changelly expect VET to be worth at least $0.10 by 2025. They think it can go as high as $0.12.

data collected Nasdaq Indicates that the average forecast for VET in 2025 is $0.22.

According to published data ModerateHowever, the average forecast for VET in 2025 is $0.09.

2030 VET Price Prediction

Changeof crypto experts concluded from their analysis that VET should be worth at least $0.64 by 2030. The forecast includes a maximum price of $0.79.

data collected Currency Net Indicates that the average price of VET in 2030 should be $0.38.

experts in Moderate It is predicted that VET will be worth $1.79 by the end of the century. Considering current prices, this would amount to a profit of up to 6,200%.

in conclusion

It is important to note that increased adoption of VeChain does not necessarily translate into increased demand for VET, as the token is primarily used for staking and governance.

VeChain is arguably the only blockchain in vertical supply chains that has stood the test of time. Rival tokens like Waltonchain and Wabi have seen their market caps and trading volumes plummet over the past few months.

The ongoing supply chain crisis is an excellent opportunity for VeChain to demonstrate its capabilities, but companies around the world have been resorting to legacy systems rather than exploring innovative blockchain solutions like VeChain. Having said that, the supply chain tracking industry is ripe for disruption and VeChain is poised to dominate in the near future.

Critics speculate that while VeChain’s blockchain may prove useful, the specific nature of its native token’s utility (i.e. relevance to the commercial world) could be an obstacle to its development.

VeChain needs to focus on what it excels at – logistics and supply chain blockchain solutions for businesses.

The main factors that will affect the price of VET in the coming years are:

  • Increased demand for VET through growth in dApp activity
  • VeChain Cross-Chain Development
  • China’s economic environment is stable
  • New partnerships with companies in the supply chain industry.
  • Develop new use cases for VET

In other news, the Fear and Greed Index briefly improved in early August before retreating again as the market fell.

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