All you need to know about Vechain’s VET coin
The cryptocurrency market has witnessed the emergence of various blockchain-based solutions that are disrupting traditional industries in recent years. One such project that has gained considerable attention in the crypto sphere is VeChain's VET coin, built on the VeChain blockchain.
The VeChain blockchain was launched in 2017, primarily focusing on supply chain management. Over the years, the project's ecosystem has evolved, and it now provides a platform for various businesses to nurture sustainability.
Here, we will delve into the role of VET coin in the VeChain ecosystem, how it works, and the market outlook.
Blockchain and sustainability
Blockchain technology can have a significant impact on sustainability efforts in various industries. Its decentralised and transparent nature enables more efficient tracking of resources, supply chains, and carbon emissions. Accordingly, an increasing number of projects are introducing blockchain solutions to achieve sustainability goals.
Blockchain systems can contribute to sustainability in many ways. The most common application is tracing carbon credits, which can help businesses reduce their carbon footprints. Another way is to trace the journey of sustainable products. In addition, blockchains can improve waste management systems and supply chains and even facilitate trading renewable energy.
Now, let's talk about what VeChain is and how it is working to foster sustainability.
What is the Vechain blockchain?
Cryptocurrencies often raise environmental concerns, but VeChain is here to prove otherwise. It's a trustworthy distributed platform that offers businesses a solution for ensuring an accountable data flow and providing high-speed transactions. The blockchain was released in 2017 and has since presented three whitepapers.
According to its first whitepaper, the platform focused on providing supply chain management solutions to businesses. However, the recently presented whitepaper suggests that the platform is evolving into an L1 blockchain that will offer environment-preserving solutions.
VeChain is a diverse network that has introduced two native tokens: VeChainThor (VTHO) and VeChain Tokens. The first is used for gas or payment transfers, while the second is the utility token used to transfer value. The platform uses a two-token model to mitigate volatility and maintain stability in its ecosystem.
Leveraging VeChain's environment, businesses can develop decentralised apps (DApps) according to their needs. They can use the blockchain as a platform to store and track service or product information securely. Additionally, it allows customers to track the authenticity of sustainable products.
How is Vechain building the blockchain biosphere?
Vechain is a distributed ledger that is constantly evolving to help enterprises adopt blockchain technology for sustainability. The blockchain offers flexibility, a sustainable economic model, and transparent governance to maintain efficiency and transparency.
The blockchain introduces a two-token model, which makes it dependable. Besides, there is a Proof of Authority (PoA) consensus method for the blockchain's governance. This consensus mechanism has a set number of verifiers, which improves its energy consumption. It makes the network highly secure and speeds up transactions.
In late 2022, the network also went through an update that upgraded the PoA to PoA 2.0. There were three main additions to the network, including absolute finality, reduction in risks of disruption, and enhanced efficiency for faster transactions.
The network's layer 1 blockchain is VechainThor which allows enterprise adoption. It provides an energy-efficient environment, open source, and user-friendly. The chain, along with the PoA 2.0. makes the network scalable, secure, and eco-friendly.
In addition, the network is designed in a way that it can integrate all Internet of Things (IoT) technologies. It makes the Vechain ecosystem capable of resolving issues like storing large amounts of data. This power allows enterprises from various domains like medical, energy, supply chain, finance, and others to move towards digitised ecosystems.
Vechain can provide a backbone for enterprises looking to build sustainable products. With its trustless smart contract and the ability to incorporate IoT, Vechain can help enterprises blend the physical world with the digital one, a phenomenon known as "phygital".
Features of Vechain
Here are some of the prominent features of the Vechain network:
- Integration with the IoT
A prominent feature of the Vechain blockchain is its ability to integrate with IoT devices. It can help collect and track data from various devices using IoT technology.
This power of the VET blockchain makes it suitable for a range of domains, especially healthcare and supply chains. It can help integrate smart contract technology into devices and bring trustless automation. Moreover, you can create an incentivised ecosystem that streamlines all the devices within a network.
- An economy based on a dual-token model
The Vechain network also introduces a dual token ecosystem that depends on VET and VTHO coins. This type of economy is introduced to make the network stable and tackle volatility. Besides, it also allows the network to cut down its energy consumption.
The two tokens have specific roles in the ecosystem: the VET token covers the utility requirements, and the VechainTHOR token is used for gas costs. This type of model is more efficient than most prevalent single-token models.
- PoA consensus mechanism
The platform uses the PoA consensus mechanism to secure the network and to add new blocks to the chain. It is a version of the Proof of Stake (PoS) mechanism that secures the system by staking tokens. However, the difference here is that PoA has designated verifiers in the network, and they can use their identity to validate transactions.
Vechain is among the most popular blockchains that use the PoA consensus method. Other noteworthy blockchains that use the method are Bitgert, Xodex, and Palm Network.
- Supports sustainability
Another unique feature of the Vechain network is that it is designed to support sustainable projects. Although it started as a platform for supply chain management, it has evolved into a complete ecosystem that can support environment-friendly businesses.
The platform can work as a hub for different use cases of blockchain tech for sustainability. It is working in alliance with numerous enterprises to develop a biosphere.
- Energy efficient
The Vechain network is one of the most eco-friendly projects in the crypto market. It also makes claims that it is the most energy-efficient blockchain, consuming only 0.04% of the energy other blockchains consume.
According to the 2022 carbon footprint data Vechain shared, the blockchain consumed 4.46 t CO2e/year. This amounts to only the carbon emissions of a gasoline-powered vehicle. That's why the blockchain is not only fast and scalable, but also remains environmentally friendly.
VET coin price and tokenomics
The Vechain network has introduced two distinct coins, but in this article, we will solely focus on the VET coin.
VET is the utility token that powers the platform's ecosystem and pays for transactions on the network.
The VET tokenomics aim to create a self-sustaining ecosystem where VET holders are incentivised to hold and use VET in the Vechain ecosystem. VTHO generation incentivises VET holders to use the network. This model ensures the long-term viability and growth of the Vechain platform.
Currently, the total supply of VET coins is capped at 86,712,634,466 tokens, with approximately 64% of the total supply in circulation. The coin holds the 38th rank among all cryptocurrencies, with a market cap of $1,656,457,551 and a trading volume of $48,911,786 in the past 24 hours.
Moreover, as per CoinMarketCap, the VET coin currently trades at around $0.0228. At time of writing, the coin's price is down by around 2%.
In 2021, the VET coin recorded its all-time highest value at around $0.2782. Since then, the token's price has dropped by 91.84%. However, the coin's lowest value was recorded at $0.001678 in 2020.
VET coin price prediction
The current trend indicates that the 50-day SMA (Simple Moving Average) for the VET coin is at $0.0214, while the 200-day SMA is $0.0220. Additionally, the coin’s 14-day RSI (Relative Strength Index) stands at 42.46. Based on this data, VET is expected to maintain a similar price in the near future.
However, according to price predictions from CoinCodex.com, bearish sentiments are expected for the next five days. While the market's fear and greed index indicates neutrality, a price drop of more than 5% may be anticipated. The asset’s volatility is expected to be 4.59% for the next 30 days.
Disclaimer: Please note that cryptocurrency price predictions are not certain and should be cautiously taken. These predictions are based on various market factors and should not be considered investment advice.
Long-term price predictions for VET Coin
Let’s take a look at the price forecast for the years 2023, 2025, and 2030.
Price predictions from PricePrediction.net
According to PricePrediction.net’s Vechain price prediction, the VET coin price in 2023 is expected to average at $0.031. The highest predicted value for the token is $0.036, and the lowest is expected to be $0.030.
Looking ahead to Vechain’s price prediction for 2025, the coin’s price is expected to grow steadily. The prediction suggests that the VET coin will average around $0.064 and may reach a maximum value of $0.078. The coin’s minimum price in 2025 is expected to be $0.062.
PricePrediction.net’s data also shows predictions until 2030. The prediction indicates that the coin will eliminate a decimal in 2027 and may reach up to $0.41 by 2030. The price may also hit the $0.5 mark, while the lowest will be $0.40.
Price predictions from DigitalCoinPrice
The price predictions from DigitalCoinPrice are similar to those of PricePrediction.net, with a forecast of sluggish progress for the VET coin in the coming years.
The token's price is expected to reach a maximum of $0.048 in 2023, with an average trading price of $0.0461.
Looking ahead to 2025, the Vechain price prediction suggests that the token will be valued at around $0.078, with a maximum value of $0.0794 and a minimum value of approximately $0.064. Additionally, 2030 predictions indicate that the VET coin will be floating in the market at around $0.23.
It is important to understand the factors involved in making these predictions. Price predictions are usually based on technical analysis, which involves studying a particular cryptocurrency's historical price movement, trading volume, and market trends. Other factors affecting the price include global economic and political events, government regulations, and market sentiments. Investors should remember that price predictions are speculative and not guaranteed. You should always conduct your research and analysis before making investment decisions.
Where can I buy the Vechain (VET) coin?
VET and VTHO coins are available on most popular crypto exchanges, including Huobi Global, Binance, and several other notable exchanges. You have numerous options for trading VET coins, as it’s available in trading pairs with cryptocurrencies, fiat currencies, or stablecoins.
Is VET coin a good investment?
As with any other crypto project, the value of VET coin will depend on how the network progresses in the coming years. The technology and vision behind the Vechain network are novel and have the potential to transform industries. Furthermore, it can support the efforts of projects working to preserve the environment.
The network offers various use cases in healthcare, IT, supply chain, and other domains. It currently collaborates with top companies such as PwC, BMW, Walmart China, Haire, DHL, and many others. VET’s price may rise if its ecosystem continues to attract other large enterprises and successfully creates a blockchain biosphere.
However, if you're looking to invest for immediate returns, it may not be the ideal choice. If you believe in the project's sustainability vision, then it would be prudent to consider it for long-term investments.
In any case, you should conduct your own research by tracking market trends and conducting a thorough analysis of the project.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.