Why Is VeChain (VET) So Cheap Right Now?
Why is the VeChain token so cheap? Are we expecting the altcoin's prices to rise in the near future, and should you be buying more VeChains today?
Well, there are a number of factors that continue playing a key role in keeping the VET token trading at relatively low prices. Chief among them is the altcoin’s bloated token supply, the fact that its acceptance and adoption levels have been relatively low, and probably because - as is the case with all cryptocurrencies - VeChain has no real or perceived intrinsic value.
In this post, we will be looking at the different ways in which these factors have continually kept VET prices trading at relatively low prices.
But before we go on, we must emphasize that a low price doesn’t mean the coin is of low value because even though the coin is massively undervalued, it still manages a $7.3 Billion market cap. In fact, if VeChain was a traditional company, it would be a mid-cap sized entity listed alongside the likes of MicroStrategy and AmeriCold and ranked as one of the 2000 most valuable brands in the world.
There is also hope that the altcoin prices will correct upwards moving forward and probably help VET make it to the top 10 most valuable cryptocurrencies.
But when will its prices rise, and how high can they get? Should you be stacking VET tokens in readiness for the eventual price gain?
These are the questions on every crypto investor's mind right now, and we will be answering them in a few. But before that, let us look at VeChain’s price history and elaborate on the factors behind its huge undervaluation.
VeChain (VET) Price History
VeChain launched in 2016, but the VET altcoins only started trading in the open markets in August 2018. Data from CoinMarketCap indicates that the coin had an introductory price of $0.013. It also indicates that within two weeks of listing, VET token prices dropped to $0.007 but quickly recovered and rose to hit $0.019 in the first week of January 2018, at the height of the 2017/2018 crypto market rally.
As the rally died down, VeChain withered, and its value fell below the market entry price and traded within this region until the last half of 2020.
Though it has come up with revolutionary blockchain technology and even scored numerous partnerships with different supply chain industry players, VeChain prices didn’t budge. In fact, VET prices only started gaining meaningful traction and investor interest during the early 2021 crypto market rally, and in less than four months, its price shot from $0.019 to its current all-time high of $0.278.
It had appreciated by more than 1400%, and everyone hoped it would rise to $1 before year-end and further extend this to $10 within the next 5 years. But China banned Bitcoin and expelled miners from within its borders, Tesla stopped accepting Bitcoin as payment for its electric cars, and there were rumours that crypto regulations were coming to the US.
All these caused the crypto market crash, and VeChain lost its momentum, even losing 80% of its peak value and dropping to $0.05 by mid-July. Since then, it has maintained a slow but progressive uptrend that had it trading between $0.1055 and $0.1228 in the last 7 days.
But even with the uptrend, most crypto analysts believe that VeChain is still grossly undervalued, which then begs the question; why is VET trading at such low prices?
Why Is VeChain (VET) So Cheap?
We have already said that some of the factors that keep VET token trading at relatively low prices include its bloated maximum coin supply and low adoption rate. Let us now explain how each of these keeps VET token prices relatively low.
Total maximum coin supply: VeChain has a total maximum coin supply of 86 Billion VET tokens. This is to say that if it were to reach $1, it would have a market cap of $86 Billion - making it the 3rd most valuable cryptocurrency, well above such revolutionary crypto technologies as Cardano, Solana, Binance, and even Ripple. Investors and crypto experts don’t think that VeChain technology is superior to the likes of Cardano or Ripple. And without this vote of confidence, VeChain lacks the fuel to power its run towards higher price levels.
Low adoption rates: Though VeChain has already entered into partnerships with such major brands as Amazon WS, Walmart China, and LVMH, one can still say that the uptake of its supply-chain-centred blockchain has been quite low. The low adoption has then been translated to mean little enthusiasm for the VeChain technology by the industry in which it seeks to operate, which makes its VET token unattractive to investors.
Should I Buy VeChain(VET) While It Is Still Cheap?
Yes, and we base this answer primarily on a majority of crypto experts and the larger crypto community’s belief that VeChain prices will continue rising in the near future. By buying VET at the current low prices, therefore, you would be setting yourself up for massive profitability when its value shoots up in future.
Crypto experts at PrimeXBT, for instance, are confident that the altcoin prices will continue rising for the next few years and that it could reach $3.12 by the end of 2025 - translating to 2700%+ value gain in the process. This says that if you invest $1000 in VET today and it eventually hits this milestone, you would be $27,000 richer.
The crypto market sentiments on the future of VeChain are also largely bullish as traders expect VET token prices to continue rising in the near future.
Don't Miss: Is VeChain (VET) A Good Buy?
Will VeChain (VET) Bounce Back?
Yes, there is an overwhelming conviction within the industry that VeChain token price will continue rising and that it will topple the early 2021 peaks and go ahead to set a new all-time high.
Crypto experts have identified the crypto market price action and partnerships with popular off-chain brands as the key price drivers for VeChain’s price action. Moving forward, the crypto market is expected to rally twice within the next five years; in 2022 after the Taproot Bitcoin upgrade (highly likely) and in 2025 after the 2024 Bitcoin halving event (almost definite) and both are expected to help VET break above new price levels.
Similarly, analysts are confident that the VeChain blockchain will continue attracting more partners who want to develop supply chain programs on this network. These partnerships will draw in developers and more users whose interactions on the network and with VeChain tokens will help boost the altcoin’s value.
We must also add that the rate with which VeChain rebounded from the July 2021 dip has also shown the altcoin’s resilience and willingness to continue rising as we head into the future.
Conclusion: Why Is VeChain (VET) so Cheap?
VeChain is cheap because its oversized maximum token supply limits the potential growth of its market cap and also due to the poor reception and adoption its blockchain technology has received from the supply chain industry. Nevertheless, the crypto industry players - from investors to analysts and even social media sentiments - are overwhelmingly confident that VeChain prices will continue rising in the foreseeable future. These parties argue that if the crypto market sustains the current uptrend and more off-chain brands pledge to build on the VeChain blockchain, the VET token will be much more valuable in future than it is today.
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