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VeChain (VET) price prediction
Will the price of VeChain head up or down in the weeks and months ahead?
VeChain is a blockchain platform designed to streamline supply chain management for businesses across a wide range of industries. However, following its February 2018 rebranding to become VeChain Thor, this ambitious project also has plans to become an enterprise dapp platform in much the same way as Ethereum.
The network’s native token, VET, has attracted considerable interest from crypto enthusiasts and experienced substantial fluctuations throughout late 2017 and early 2018. To find out where its price could be headed next, it’s important to consider a few key factors.
|Coin name||VeChain token|
|Launch date||August 2017|
VeChain price prediction
Cryptocurrencies are complicated and volatile, and there are many factors that can contribute to the growth or decline of their price. With this in mind, it’s important to research and analyse those factors to form a clearer picture of where the value of a particular coin or token could be headed.
If you are thinking of buying VET, consider the following factors:
What could drive VET’s growth?
- Partnerships. One of the key factors that has driven interest in VeChain is that it has secured genuine partnerships with a host of big names in the corporate world. Not only is it part of PricewaterhouseCoopers’ incubation program, but it has also inked agreements with certification service provider DNV GL, financial services provider Fanghuwang, and China’s National Research Consulting Center, as well as announced that it will receive advisory support from Breyer Capital.
- VeChain Thor. In February 2018, VeChain underwent an official rebranding to become VeChain Thor. This is part of a process that will see the project expand from supply chain management and anti-counterfeiting into an enterprise dapps platform with scalability up to 10,000 transactions per second. VeChain Thor will be a new blockchain on which VeChain Thor (VET) tokens will be used. Existing VEN tokens will be converted to VET tokens on a 1:1 ratio. VET will be required to issue new dapps, use platform-wide services and perform other transactions.
- Product already in use. Founded in 2015, VeChain already offers a blockchain solution that is used by businesses in the agricultural, wine and luxury goods industries to improve supply chain management and help determine the authenticity of products.
- The VeChain Foundation. VeChain is backed by The VeChain Foundation, a non-profit entity established in July 2017 in Singapore. The foundation is “committed to VeChain’s development, construction and governance, ensuring transparency, advocating the safety and harmonious development of open source communities”.
- Supply and demand. According to CoinMarketCap, at the time of writing the circulating supply of VeChain tokens was 515,250,634 VEN, out of a total supply of 873,378,637 VEN. If the VeChain Thor platform can continue to attract users and develop partnerships with big corporate names, this could increase demand for the token.
- Earning THOR. The VeChain Thor network will feature two tokens – VET, the payment currency used to run business activities on the blockchain, and Thor Power (THOR). THOR is used to create smart contracts and run applications on the blockchain, and VET holders generate THOR at a base rate of 0.00042 THOR per VET per day.
- X Node program. In March 2018, VeChain launched its X Node program, which is designed to reward the platform’s early supporters. To qualify for X Node status, token holders needed to have 6,000 or more VET in a trackable wallet by 20 March. This reduces the amount of tokens in circulation, potentially having an impact on demand.
What could hold VET back?
- Lack of adoption. VET tokens are needed to run business activities on the VeChain ecosystem, so if the platform is unable to achieve widespread adoption by a significant number of companies, this could impact on the level of demand for the token.
- Competition. From a supply chain management point of view, the level of success VeChain can achieve could be influenced by how it stacks up against projects like Waltonchain and Modum. However, with the Vechain Thor launch and a move towards enterprise dapps, VeChain will also need to compete with crypto giant Ethereum and other smart contract platforms.
- Still being developed. While VeChain Thor sounds promising, it’s still a work in progress. The VeChain Thor blockchain is set to go live in Q2 of 2018, but only once it has been launched and fully assessed will we be able to get a better idea of how well it functions.
- Confusion. One other factor to take into consideration is whether there may be some confusion among buyers and the wider cryptocurrency community about the differences between VEN and VET tokens, as well as how they relate to THOR tokens. Make sure you understand the function of each of these tokens (and how to store them) if you are thinking of buying any tokens native to the VeChain system.
Where to buy VeChain
What’s coming up in VeChain’s roadmap
What are the key milestones coming up in VeChain’s future? By far the most important development in the roadmap will be the launch of the VeChain Thor blockchain, which is expected to occur in June 2018. Thor will allow for the creation of dapps on the VeChain platform, and is a crucial phase in the project’s plan to become an enterprise-grade platform for these types of applications. Understandably, the launch will be watched with interest by many in the cryptosphere.
This launch, known as version 3.0, will also include the launch of the VET token, the exchange of VEN tokens for VET tokens, and the launch of the VeChain Wallet.
VeChain v4.0 is slated for Q4 of 2018 and is expected to feature the introduction of crosschain and sidechain technology, and IoT integration. By 2019, the team expects to be focused on the expansion of the VeChain Thor ecosystem.
VeChain’s price could also be influenced, both positively and negatively, by the performance of its competitors. In the supply chain management sphere, key projects to keep an eye on include:
- Waltonchain (WTC). This joint Chinese/Korean project uses blockchain and RFID to track items and improve supply chain management. It was launched in 2016 and is named after Charlie Walton, the man credited with inventing RFID technology.
- Modum (MOD). Another project focused on streamlining supply chain processes, Modum combines IoT sensors with blockchain technology to enhance data integrity.
However, as VeChain moves into the field of enterprise dapp solutions, it will also face competition from projects like:
- Ethereum (ETH). The number-one dapps platform and the second-largest cryptocurrency by market cap, Ethereum is an established player in this competitive area.
- Cardano (ADA). Launched in 2017, Cardano is a smart contracts platform built in the Haskell programming language and focused on security, scalability and user-friendliness.
- EOS (EOS). Designed with the aim of creating a better-scaling and more user-friendly version of Ethereum, EOS is another relatively new dapps platform still being developed.
- NEO (NEO). The so-called Ethereum of China, NEO offers a smart contract platform that supports a wide range of code bases. Having been at the centre of a great deal of hype since its launch, NEO is one of the world’s top 10 coins by market cap.
Beyond 2021: What does the future hold for VeChain?
What happens to VeChain in 2019 and beyond will be greatly influenced by what happens in 2018. The highly anticipated Thor upgrade will be a crucial stepping stone for the project and its ambitious plan to support dapps. If the launch is successful and the new blockchain functions as hoped, there is enormous scope for VeChain to continue its expansion. Of course, any delays or bugs could also have an impact on the price of VEN/VET.
It will also be interesting to see what unfolds as VeChain faces off against its competitors, not only in the supply chain management field but also as a dapps platform. Ethereum is the current king of the latter and very well established, so becoming a viable competitor to the world’s second-largest cryptocurrency will be a huge challenge.
That said, if VeChain can continue its record of securing big partnerships, this will go a long way towards keeping it towards the pointy end of the competition.
The bottom line for VeChain is that there are both challenges and opportunities that lay ahead. The platform has a solid base, a working product and some impressive partnerships to its name. However, 2018 looks like being a huge year for the project and the official launch of VeChain Thor is one to watch. Monitor the latest crypto news and announcements closely and do your own research before deciding whether or not you should buy any tokens.
At the time of writing, the author holds IOTA and XLM.
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