Is VeChain (VET) Worth Buying In 2023?

Last Updated January 5th 2023

7 Min Read

Is VeChain worth buying? This is the question most investors are asking after looking at VET token’s impressive performance throughout the year.

There is no straight answer on whether you should be investing in VeChain right now. Crypto analysts are, however, confident that VeChain token price will continue rising in the foreseeable future and that it will probably reach $1 within the next five years, which makes it a good investment.

Launched onto the crypto market 3 years ago, the altcoin has been plagued by dismal performance for the past two years as it struggled below its introductory price of $0.013. VET prices only started rallying at the beginning of last year and at the height of the early 2021 crypto market rally. Over the last year, it has moved from obscurity to being the 38th largest cryptocurrency as its market cap grew from less than $1 Billion to $3.6 Billion today, according to data from CoinMarketCap.

The VET token prices have also appreciated by more than 195%, rising from $0.019 at the beginning of 2021 to $0.05611 today. Similarly, the daily VET trade volumes and number of VET wallets have increased tremendously over the last few months, which is an indicator of increased investor interest in the altcoin.

But is VeChain a good investment? Will VET prices continue rising as anticipated, or is it another FOMO driven crypto?

We will be answering these and the ultimate question of whether VET is worth buying in 2023 in this guide. But first, let us get a deeper understanding of VeChain and how it works.

What Is VeChain (VET)?

VeChain is a blockchain-based platform that seeks to leverage decentralized technology and the Internet of Things (IoT) to streamline the global supply chain industry. It seeks to disrupt this sector by straightening the complicated traditional supply chain ecosystem in a move that guarantees efficiency, traceability, and transparency within the industry while cutting down on operating costs. Importantly, VeChain seeks to eliminate the central point of failure that exists in most supply chains.

Launched in 2016 by Sunny Lu and Jay Zhang, VeChain is the oldest supply chain blockchain. It appeals to companies that are looking to efficiently track the flow of products or data and cut down on supply chain friction.

It is unique in that it operates two tokens, VeChain (VET) and VeThor (VTHO). VeChain (VET), like all other cryptocurrencies, is used as a store of value, while the VTHOR is used to pay for transactions within the VeChain blockchain.

Simply put, therefore, VeChain is the Blockchain network, and the VET is the digital native token for the network.

Read Also: VeChain Price Predictions

Why Is VeChain (VET) So Popular Right Now?

VeChain’s daily trade volume has shot from less than $100 million 12 months ago to averaging $500+ million in the first week of October 2021. The altcoin has also been a major topic of discussion in crypto chatrooms like Reddit and at the centre of examination by most technical and fundamental crypto analysts.

We are confident that these three factors have played a key role in helping the altcoin court this popularity over the last few months:

Rising VET token prices

We have already mentioned that VET prices are up by more than 600% in the year to date. We must also add that at the height of the early 2021 crypto market rally when it peaked above $0.278, several analysts predicted that it would break above $1 before the end of 2021.

Today, there are calls of a price above $2 for the altcoin by 2025, and all these positive projections have endeared it to both long-term and short-term investors who have been drawn into the coin by the fear of missing out on its next big price uptrend.

Strategic partnerships

Numerous off-chain brands have entered into key partnerships with VeChain, bringing exposure to the VET coin and its development platform. And through these partnerships, they have injected capital into the blockchain network. These attract developers whose projects draw in users and even more publicity.

Some of the notable parties that VeChain has collaborated with and who are expected to launch programs on the network include Amazon Web Services, Bayer Pharmaceuticals, Walmart China, DNV Company, LMVH, BMW, Trusted Food, and GrantThorton.

Involvement with NFT and DeFi

VeChain has positioned itself as one of the superior blockchains on which smart contracts for DeFi apps can be executed, and enterprise NFTs (eNFT) hosted. The ongoing DeFi explosion can thus be said to have helped boost VeChain’s popularity, but it is the incoming NFT craze that is expected to make it a top 10 cryptocurrency.

Should I Buy VeChain (VET)?

Well, the decision to invest in VeChain should be informed by such factors as risk tolerance and crypto trading experience. You also have to look at the numbers, especially its overall ROI and price action for the last 12 months, to help inform your decision. In such a case, the 274% overall ROI posted by the coin, though not as attractive as that of popular cryptocurrencies, as well as the fact that VET has sustained an uptrend for the last 12 months, are indicators that VeChain is a good buy.

We must also observe that so far, much of VET’s price action has been influenced by ongoing developments within the Vechain network and the crypto market. Looking at VeChain’s network activity for the last 12 months, you will notice that it carried out key partnerships right about the time when the crypto market was readying for a rally in the last quarter of 2020.

More partnerships and development work within the network and an unprecedented Bitcoin price rally helped drag VET from obscurity to one of the most talked-about cryptocurrencies in 2021. It also helped catapult its token price from $0.019 to $0.278 in less than four months. Moving forward, the two are expected to continue playing a critical role in VeChain’s token price action.

So, Is VeChain Worth Buying in 2023?

Yes, because the fundamental and technical analysis suggests that the VET token prices will continue rising in the foreseeable future. Plus, having considered that it is a pioneer supply chain decentralized network and its highly innovative platform, crypto analysts have concluded that it will continue drawing more partners who help popularize the blockchain and add value to its token prices.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Why Should You Buy VeChain (VET)?

In addition to the potential future partnerships between VeChain and offline brands and a promising crypto market performance, here are three more reasons why you should be stacking your VET holdings today:

Its prices are bound to rise: From fundamental to technical analyses of VET coin prices and even long-term trader sentiments, every indicator points to a bullish future for the VeChain token. Analysts from CoinQuora have eve even suggested that it could hit $10 (appreciating by more than 17,700%+) by the turn of the decade.

VET is liquid: VET has also been listed with all the major crypto exchanges around the world, making it deeply liquid - easy to acquire and dispose of.

It has the backing of an innovative and unique blockchain: Look at the top 10 cryptocurrencies, and you will realize they most offer pioneering technology and disruptive blockchain-based solutions to the legacy conventional industries. VeChain is no different, and its contributions in the supply chain industry will likely not go unnoticed but will soon attract massive adoption and acceptance that, in turn, catapults VET token prices to unprecedented heights.

Risks Associated With A VeChain (VET) Investment?

As is the case with all crypt investments, VeChain isn’t immune to risks and here are two that threaten to derail the altcoin’s future price action:

Stiff competition: There is a level of fear that traditional and more popular technology companies like Amazon, IBM, and Verizon will soon join the crypto industry with similar blockchain technologies. Such competition would eat into VeChain’s market share and slow down the growth rate of its VET token prices.

Failing crypto market: Seeing that much of VET’s price action is pegged to the performance of the overall crypto market, unprecedented changes in the industry like government regulation will shake the crypto market and send VET tokens crashing.

Conclusion: Should I Invest in VeChain (VET)?

The takeaway from this piece is that VeChain has performed well in the year to date and is expected to sustain this uptrend moving forward. Considering this and the fact that it has an overall positive ROI, that it continues to welcome key partners to its blockchain network and the overly bullish trader sentiments, analysts think it has a bright future that makes it worth buying in 2023.

But don’t be carried by FOMO, consult an expert and conduct your own research of VET token and its future before deciding to buy. As always, remember that crypto investing is risky and, therefore, only invest what you can afford to lose.