VET crypto price prediction: Will VeChain rise in value?
VeChain demonstrates the continuing advancement of the blockchain sector.
VeChain is a fully programmable smart contract platform that utilises distributed ledger technology to provide retailers and consumers with the ability to determine a product’s quality and authenticity. In a sense, this enhances supply chain and product lifecycle management processes, while connecting blockchain technology to the real-world.
Founded in 2015 by Sunny Lu, the project’s vision is to build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration and high speed value transfers.
More specifically, VeChain ToolChain offers a low-code blockchain-based software as a service (SaaS) platform that allows enterprise clients to build and drive digital transformation on a global scale. Solutions are suited to an enterprise’s specific business needs. VeChain has secured high-profile partnerships with the likes of PwC, Walmart China and BMW Group.
What the VeChain project excels at is enabling businesses to track their products and conduct quality assurance through a unique blockchain-as-a-Service (BaaS) model. This has the potential to both reduce the costs between parties, as well as making business cooperation simpler and more efficient.
In particular, global supply chain suppliers stand to benefit from the integration of blockchain technology since their systems often rely on tracking physical paperwork between siloed parts of a multinational network.
In 2019, multinational retail corporation Walmart announced that it would be partnering with VeChain to streamline product management between its suppliers, stores and customers in China through a traceability strategy.
Earlier this year, the Republic of San Marino approved VeChain’s NFT-based vaccination passport which contains a record of past infections, negative test results and also provides a digital vaccination certificate.
In other VeChain news, the company has worked with the Chinese government to introduce a risk self-assessment application called VeTrust, which is built on the VeChainThor blockchain and combines DNV’s — the classification society and a recognised advisor for the maritime industry — infection risk management methodology.
What is VeChain (VET)?
From product source materials to servicing history, every single piece of information about the supply chain movement of a product can be recorded and verified. VeChain offers a product traceability strategy which covers the life cycle of products from manufacturing, logistics, supply chain, retail and wholesale.
By utilising VeChain’s blockchain-powered platform, businesses can assign products with unique IDs and then track goods and services by embedding this ID in a QR code. This allows manufacturers, supply chain partners and consumers to track the movement of products through their supply chain.
On the VeChainThor platform, there are five main types of participants:
- Business owners, which includes all kinds of entities such as enterprises, individuals, organizations, departments of governments and regulators
- Application service providers that help business owners who do not have the individual adequate capabilities to build necessary applicational development and services on the VeChainThor blockchain
- Enterprises or individuals that are capable of providing technical services to build and run smart contracts for business owners who wish to develop blockchain applications
- Infrastructure service providers who ensure the integrity of the VeChainThor blockchain network by generating and verifying blocks
- Members of the VeChain Foundation
The VeChain token (VET) is used to carry value from smart contracts which means that transactions on decentralised applications occurring on VeChain’s blockchain use VET.
The VeChain Foundation has distributed more than 70% of VET tokens (including a portion of burnt tokens) through different processes including private sale, public sale, promotions, business collaborations and marketing activities.
VET price analysis: Technical view
The VET coin started its journey in August 2018, and achieved an all-time high of $0.2782 on 17 April 2021. Only a week earlier, on 10 April 2021, VET had been trading at $0.1335.
However, the price retreated to $0.1589 on 25 April, dropping to as low as $0.07553 on 23 May. This is somewhat of a sharp drop considering that the coin had hit its all-time high just 37 days earlier.
The VET price then consolidated, trading within the $0.06 to $0.09 range until 7 August 2021, when it climbed to $0.1031, hitting $0.1556 on 6 September 2021. The rally was short lived, and the trend reversed when the price dropped to $0.08642 on 29 September 2021.
It’s currently (2 December) trading at around $0.116202. A decisive close above $0.12 would confirm a rally and clearing this crucial barrier could reverse VET’s downward trend.
VET ranks 27th in the list of cryptocurrencies by market capitalisation at $7.6bn. There are more than 64.32bn VET coins in circulation from a total supply of 86bn, according to CoinMarketCap.
The daily simple and exponential moving averages are giving mostly sell signals, according to data from TradingView, while the relative strength index (RSI) is at 39, as of 2 December. An RSI reading of 30 or below indicates an oversold or undervalued condition. Generally, when the RSI surpasses the horizontal 30 reference level, it could be interpreted as a bullish signal.
The technical analyst at CoinText, Ansh Rathod told Capital.com:
“VET has fallen by over 40% from the highs that it hit last month, however it seems to be taking support from the lower trendline, which could be a reversal zone for the coin. VET has formed several bullish candles at the support level and a break from the $0.129 resistance zone could change this downward trend.”
Blockchain-powered solution focused on supply chain and logistics needs
Last month, VeChain marked a milestone in its seven-year history. The company launched the first phase of its Proof-of-Authority (PoA) 2.0 consensus mechanism, which aims to improve the scalability of the network.
The upgrade allows VeChain transactions to be authorised without the use of mining, thus reducing environmental impact and providing a boost to the project.
According to VeChain, PoA 2.0 combines the Byzantine Fault Tolerance and Nakamoto consensus mechanisms to offer a more secure system, which could lead to wider adoption for the project.
Anndy Lian, chairman of BigONE Exchange and chief digital advisor for Mongolia’s national productivity agenda, believes that the VET token has not yet reached its optimum potential.
“VeChain’s recent upgrade to a Proof-of-Authority (PoA) model is deemed to be more environmentally friendly and this is just the beginning. Many people in my circle are saying that VET’s price could go up during this bullish market but they are yet to invest in the project as they are waiting for the full-scale launch of the upgrade to materialise. I can only say that innovation takes time — let’s be patient.”
What are the risks for the VET token?
While VeChain is a cryptocurrency that powers a network with some revolutionary potential, it’s crucial to take key risks into account and consider the price yourself before you decide to proceed forward. VeChain was launched in 2015, making it a relatively new project.
Also, the PoA system used in VeChainThor lacks the open, permissionless and decentralised nature which is inherent to blockchains, thus posing centralisation risks.
VET token price prediction: Buy, sell or hold?
In terms of a VET coin prediction, algorithm-based forecasting service Wallet Investor gives a positive VET/USD forecast. Based on historical data, Wallet Investor sees the price rising to $0.224 by December 2022, $0.441 in December 2024 and hitting $0.549 by December 2025.
Digital Coin Price supports the bullish VET crypto forecast, expecting the token to grow to $0.2290027113 in 2022, $0.2898387094 in 2025 and hit $0.5757652097 in 2028.
Note that algorithm-based predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
Original Source: https://capital.com/vechain-vet-coin-prediction