Traders, institutions and investors have been expecting the “alt season” for the past three years without anything. However, several cryptos have been developed with solid fundamentals and significant use cases. One of these cryptocurrencies is Vechain. It managed to build a strong user adoption before the last bear season ran out.
Vechain has a market cap of $8.07 billion and ranked 19. Vechain has never really witnessed a bulk market. Its entirety depends on positive feedbacks from users and enticing fundamentals. Since its first listing on exchange platforms, the Vechain price ranges from $0.01 to $0.03.
So, it’s normal to begin to think of the future price of the Vechain peradventure it survives at this stage. Is it a good coin for investment? What’s the price prediction in few years down the line? It’s essential first to understand what Vechain is before discussing its possible price in the next few years.
What is Vechain?
Vechain was developed by Sunny Lu, a former CIO of Louis Vuitton, in 2015 and was launched in 2016. Sunny launched Vechain, a blend of supply chain management and his knowledge in blockchain technology, to produce a blockchain traceability panacea in the fashion and luxury industry.
Hence, Vechain aims to create a transparent supply management network keeping track of any product that passes through supply chains via sensors. Since its creation, Vechain has received quite a number of recognition since it’s not only or majorly for encrypted transactions but also tracking of product.
Several production firms have adopted Vechain to track their supply shipments, which has helped boost Vechain price. It should be noted that the Vechain has Dualism strategies in its tokens like that of Ethereum. The two tokens on the Vechain network are
VET (Vechain token): this token is used on the dApps browser to perform decentralized transactions that might have occurred on the Vechain network.
THOR (VechainEnergy): this is used to pay transaction fees and could also be earned from the staking of VET token or investors who hold VET tokens in their wallets. This concept is similar to Ethereum gas, Ether.
VET tokens and price-performance since the creation
Here are a few explanations as regards the price of VET from the very beginning
ICO to 2017: In August 2017, VET was sold to early investors under the name VEN through an ICO, which is not trackable. However, note that it started on the Ethereum blockchain before it got integrated into its own. During this period, early adopters (investors) were able to acquire 3500 VEN token with 1ETH.
At this time, the price of Ethereum ranges between $311 to $324, setting the price of VEN for early investors at $0.01 per token. With the price tending towards $0.013, each VEN token would later be converted into 100 VET token.
During the final quarter of 2017, in the bull run, the price of VEN remains unchanged until July 2018. The price of VEN as at this time was $1.30, running up to 12X from ICO listing price
2018 to 2019: This was the ear of the bear market, and VET was greatly affected. Similar to most altcoin, reaching price bottom, VET also touched its price bottom coming down as low as $0.004 per VET. The price fluctuations continued for almost two years without any advancement.
Even when most first and second-generation coins like bitcoin and Ethereum started recovering alongside other altcoins, Vechain price remained unchanged and alternated between the $0.01 price level.
2020: Thanks to the adoption of DeFi tokens in 2020. As mentioned above, Vechain is interconnected with the use of DeFi and dApps (decentralized app browser). This adoption experienced by most token was also responsible for the temporary pump in the price of VET to around $0.017 at the time.
Aftermarket correction resulting from the overvaluation of market condition, VET continually grew alongside other altcoins with great fundamentals. Currently, VET is trading at $0.125, and you can get the Vechain price on Bitvavo alongside other trading pairs.
Price prediction for 2021: The beginning of the year saw quite a number of bullish sentiments around most altcoins, and the same can be said of VET. Some of these sentiments include the following.
The price of VET is lost likely to skyrocket this year because of its primary focus, which is on supply management. It’s one of the best use-case strategies of Vechain, and it’s strong enough to pump the price of VET
Vechain has never truly experienced a bull run, and with 2021 being the altcoin season, it just might be the same for VET.
Because of the connection between VET and DeFi applications, these solutions provided by DeFi could be built on the VET blockchain.
Hence, according to the reasons mentioned above, the price of VET is aimed to pump as high as $1 in the final quarter of 2021. However, there could also be a possibility of a parabolic bull run for VET, seeing the token go even as high as $2 or $3 range, all things being equal.
Vechain’s Price predictions by 2025 and beyond
It’s somewhat uncertain to give future price predictions, but from what has been predicted to be Vechain’s price 2021, we can forecast what 2025 and beyond will look like. DeFi is expected to undergo massive growth in the next four years down the line. While this is possible, it will affect the price of DeFi tokens and other altcoins linked to DeFi, VET inclusive.
By 2025 the total market cap of crypto is expected to surpass that of Gold, and if this is so possible, peradventure then goes up to 20 trillion, which means all crypto from that point will 20x.
However, about half of this value is most likely going into Bitcoin and Ethereum investors, while the rest spreads across DeFi tokens with solid fundamentals such as VET. It’s, however, challenging to say the price of VET will be $10 by 2025, although if we could hit the predicted 2021 value, then we can begin weighing option and calculating our confidence level on whether or not it will surpass our predictions.