The name of the project’s blockchain is the VeChainThor blockchain. It is also known as VET and is listed for trading on several exchanges, usually as a pairing of VET against a host of cryptos, stable coins and the US Dollar.
What is VeChain and What Does it Try to Solve?
What is VeChain? VeChain is an L1 smart contract platform that connects blockchain technology with the real-world economy to make business processes viable and improve their supply chain management. VeChain boasts of robust governance structure and has a highly scalable Proof-of-Authority (POA) consensus mechanism.
VeChain is essentially a blockchain for the supply chain. It has been able to rake in strategic partnerships. Clients cut across companies such as Walmart China, BMW, BYD Auto, Haier, H&M, LVMH, and the US government.
The VeChain Foundation currently manages VeChain. The token was initially known as the VEN token. VEN was the token that was offered for sale to the public during the initial coin offering (ICO). A rebranding saw the token renamed to VET, and all holders of VEN had to swap their old tokens for the new VET using the VeChainThor Wallet at a ratio of 1 VEN for 100 VET tokens.
VeChain was created by a former Chief Information Officer (CIO) of the Chinese arm of Louis Vuitton, Sunny Lu. Lu runs the organization as CEO and co-founder from the company headquarters in Shanghai, China. VeChain also has a physical presence in Paris and Hong Kong.
Lu had heard about Bitcoin in its early days, but he realized that the technology behind Bitcoin held more promise than the ups and downs of BTC price itself. Honed by his experience as LVMH Group China’s CIO, he moved away from the conventional practice of forking BTC at the time and developed VeChain as a smart contract on Ethereum. Lu later led a team that built VeChain’s native blockchain, designed explicitly for enterprise-level adoption. VeChainThor.
Project Road Map
The roadmap of the VeChain Foundation is captured in the Economic Digitization document and is also known as PoA 2.0.
This roadmap was done to boost the levels of performance and security which enterprise-level clients demand. The PoA 2.0 mechanism also makes VeChain more environmentally friendly, as less carbon is emitted in its processes.
The first upgrade was dubbed VIP-193 and commenced in July 2021. It featured random assignments of nodes to the endorsement of the block-producing mechanism by the Committee. This was followed by VIP-200, the finality mechanism in November 2021 to ensure that new blocks can be finalized even when node asynchrony occurs.
How is VeChain adoption progressing?
The mantra driving the Foundation’s efforts at achieving increased adoption of VeChain is its “Everything is Connected” campaign. A popular strategy to increase VeChain adoption has been collaborating with big players in relevant industries. For instance, clients from the luxury fashion industry were the company’s initial clients.
Another strategy has been to tap into the NFT craze by moving into the NFT marketplace arena. To this end, a zero-fee NFT platform that focuses more on Art building within the blockchain can be done. World of V is the response.
Presently, the Grayscale hedge fund says it is considering a list of tokens it will add to its largely successful crypto portfolio. VeChain is one of those on this list. These are all pointers that VeChain adoption is on the rise, and implementing the roadmap is bound to aid its utility and adoption worldwide.
The Foundation also plans to launch a stablecoin known as VeUSD. This stablecoin is expected to be VeChain’s weapon that will help the foundation dive into the DeFi ecosystem. This move is expected to drive further adoption.
VeChain Price Prediction: 2022
The VeChain price prediction 2022 comes from the weekly chart analysis, which showcases the medium-term outlook for VET/ETH.
There have been at least three significant spikes and crashes in the last three years. The length of time between the initial dip, the spike, and the eventual dip has widened. The first dip-rise-dip cycle lasted between October 2019 and March 2020 (6 months). The second one lasted from May 2020 to January 2021 (9 months). The third lasted from February 2021 to December 2021 (9 months). If the mathematical progression is followed, we could see a dip-spike-dip cycle that may last 12 months. This is not an exact rule and should not be treated as such. It only provides some guidance. With the price at the same support as the previous support dips, traders should expect a hard, fast ascent followed by a similar crash. There will be rallies and dips along the way to several key support and resistance levels. These levels are shown on the chart below.
In retrospect, the VeChain price action can be said to be occurring in cycles. If history is anything to go by, the current price looks attractive for accumulation. This could make for a fascinating VeChain price prediction 2022 cycle.
VeChain Price Prediction for 2025
One of the premises of technical analysis is that history tends to repeat itself. If you see a pattern on the charts happening once, twice or even three times before, then it is likely that you will see the same historical outcomes whenever the same pattern is seen on the charts again.
Against this backdrop, the VET/ETH chart typifies the possible price picture for the future, which may serve as the template for any bullish VeChain price prediction 2025 outlook.
This is not a regular analysis. The chart also shows the ranking of VeChain in the Coinmarketcap list of most capitalized cryptocurrencies. The dip of September 2019 saw VeChain ranked number 37. At the peak of the bounce in December 2019, it was ranked as the 27th most capitalized cryptocurrency.
VET/ETH: Weekly Chart
The next dip saw it ranked as the 35th most capitalized crypto. Subsequent rallies from the dip of 2020 have seen VeChain progressively rising up the ladder, getting as high as number 13 on the Coinmarketcap listing.
Presently, the price action is testing the same dip levels as in 2019 and 2020 from where the price action bounced. If history repeats itself, we could see a push towards 0.00002988, before 0.00003816 comes into the mix as an additional upside target. There are also potential targets to the north around 0.00004797/0.00005441 and 0.00007434/0.00008262.
Price activity has only fallen below the present price level once, and that was on 17 September 2018. Even on that date, the price bounced very strongly and ended up adding nearly 6,500% off the session lows. VeChain is therefore at an attractive buying point and the Vechain price prediction 2025 looks promising. There is always the potential for new projects to come on stream that increase the utility of VeChain and its price activity. The price range of the last six months has been between 0.3487 and 0.1314. Therefore, the VeChain price prediction 2025 could see the DOGE/USDT either trading within this range, or trading above 0.3487.
VeChain Price Predictions 2030
It is difficult to make an accurate VeChain price prediction 2030. Whether VeChain will experience a price surge that will be sustained at that time or not depends on the Foundation’s ability to stay ahead of the game. Competition from new projects with better PoA mechanisms or even better product offerings may slow down price growth. But what is clear is that with the steps the company has made into addressing enterprise-level issues such as carbon emissions, bullish VeChain price prediction 2030 targets may not be out of place.
Bullish VeChain price predictions will be seen when there is sufficient utility and adoption to drive demand. However, the unlimited supply of VeChain may pose a challenge to attempts at securing corresponding price increases. Perhaps, if the VeChain Foundation is able to work out a solution that restricts supply, then there may be a reason to believe that a substantial price increase over time will work.
VeChain is presently at price levels that are just above its 2020 lows. This makes the present prices attractive points for those wishing to add to their VeChain holdings. However, there is no guarantee that VeChain will trade-off present lows immediately and start ticking upwards. It may take some time for prices to pick up. We may also see prices trading in a sideways range. The best approach is to trade what you see on the charts and let your investment goals guide you.