- VeChain price has been in a strong bearish trend in the past few months.
- Its market cap has crashed from $16 billion to $3.6 billion.
The VeChain price has been under pressure in the past few months as demand from investors evaporates. The VET token is trading at $0.053, which is close to its lowest level since May 2021. At the same time, its price has crashed by over 80% from its all-time high. As a result, its total market cap has dropped to about $3.6 billion. At its peak, the coin had a market cap of over $16 billion.
VET demand disappears
At its peak, VeChain was one of the most popular cryptocurrencies in the world. Its market cap was among the top 20 biggest cryptocurrencies in the world. Recently, however, its popularity has evaporated and its ranking among digital currencies retreated to the current 39.
VeChain is a Chinese cryptocurrency built using the proof-of-authority (PoA) consensus that is often faster than proof-of-work. It uses a heaviest chain rule to determine the canonical chain. As a result, when forming a new block, the round leader will typically add the number of active nodes to the total score.
VeChain is mostly used in supply chain management by large companies. Some of the firms that use the network are LVMH and BMW China brands.
At the same time, VeChain has a smart contract feature that allows developers to build applications. Some of the popular dApps built using VeChainThor are VeeParrots, Vemons, Metaversials, and Guardian NFT. Still, the popularity of these apps is significantly lower than that of other chains like Ethereum, Solana, and Terra.
VeChain also recently launched VeUSD, a stablecoin that is backed by the US dollar. It is audited by Prime Trust, a company based in the US.
There are two main reasons why the VeChain price has retreated sharply in the past few months. First, the decline is in line with the performance of other cryptocurrencies like Bitcoin and Ethereum. Second, the momentum that existed in 2021 is simply not there. We can see this in terms of the number of social media mentions and Google searches.
VeChain price prediction
The daily chart shows that the VET price has been in a remarkable downward trend in the past few months. The coin fell to a low of $0.042, which was the lowest point in May last year. Therefore, the current small rebound is likely because short-sellers are concerned about whether it will keep falling.
VeChain price has moved slightly below the 25-day and 50-day moving averages. Therefore, there is a likelihood that the VET price will bounce back lower in the coming days. This view will be validated if the coin manages to move below $0.042.
