VeChain is a leading blockchain project that was built by a former senior executive at LVMH, the biggest luxury brand in the world. The original goal of VeChain was to help companies handle their supply chain challenges in a simple decentralized ecosystem. In this article, we will explain what VeChain is and why we believe it is a good investment.
What is VeChain?
VeChain is a blockchain platform that helps companies solve the biggest supply chain challenges around the world. As a result, it is solving one of the biggest challenges that many companies from around the world are facing due to the Covid-19 pandemic and the logistics challenges that emerged.
VeChain was established by Sunny Lu and Jay Zhang. Lu was previously the Chief Technology Officer at LVMH China while Jay was a senior manager at PwC.
The network works by combining a number of technologies such as QR codes, near-field communication (NFC), and radio frequency identification. As a result, its users attach sensors at every stage of their supply chain, which are then linked to the blockchain. The blockchain and the smart contracts involved make it impossible for these records to be changed.
Read more about our VeChain price prediction.
VeChain uses a software platform known as VeThor, which is built for mass adoption of the blockchain technology. It is a platform built using a technology known as Proof-of-Authority, which is its primary governance mechanism. Unlike proof-of-work and proof-of-stake, PoA demands that each node is authorized in order to access the network.
Today, VeChain is used by some of the leading companies in China. Some of the most notable companies that have embraced VeChain are LVMH, Walmart, and BMW.
VET vs VTHO
Unlike many other blockchains, VeChain has two cryptocurrencies. The main one, known as VET, is the payment currency for the VeChain ecosystem. VeChain is the most popular of the two and has a market cap of more than $2.5 billion.
The other coin is known as VeThor Token. It is generated using VET. and is used by companies to track their products in the supply chain. It has a total market cap of just $104 million. So, here are some of the reasons we believe that VeChain is a good investment.
In the past few months, the VeChain price has not performed well. After soaring to an all-time high of $0.2842 in April 2021, its price plummeted by over 87% to the current $0.034.
Large market opportunity
The first main reason why VeChain is a good investment is that it is handling one of the biggest industries in the world. While it is hard to estimate, the supply chain market was valued at over $15.8 billion. It is expected that the industry will more than double in 2026 as the industry gets more complicated. Think about the strains in supply chain due to the Covid-19 pandemic and the war in Ukraine.
Therefore, there is a likelihood that more companies will embrace the platform in a bid to simplify or solve some of their biggest challenges. Fortunately, the number of partnerships is continually growing.
Some of the major firms using VeChain are DB Schenker, Kuehne & Nagel, Bright Food, Fashion for Good, Haier, and Norway in a Box among others. As they become successful, there are chances that more companies will embrace its use.
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VeChain is being embraced by developers
The other reason why VeChain is a good investment is that the ecosystem has been embraced by developers who are building all types of applications. This situation has been made possible by the cat that VeChain has smart contract features that make it possible to build apps. There are now many publicly available apps that have been built using the VeChain technology.
For example, VeChain was used to build Buy me a Coffee, a simple platform that allows organizations and users to support through VET. It was also used to build Vexchange, a decentralized exchange. It has also been used to build projects in the NFT industry like OceanEX, NFT Paper Project, VeGhost NFT, and VeHashes among others. While most of these projects are small, there is a likelihood that they will bounce back in the long term.
VeChain is highly popular
Another main reason why VeChain is a good investment is that it is highly popular among investors and traders. Obviously, this popularity has declined sharply recently due to its performance. However, there are still many people who still hold it in their wallets.
According to VeChain Stats, the number of VeChain blocks has risen to more than 12.1 million. This is a significantly high amount. At the same time, the number of VeChain addresses has jumped to more than 1.78 million people. And despite the performance of the coin, the amount of VeChain mainnet activity has been a bit stable.
VeChain is cheap
Further, VeChain is a good investment because it is a bit cheap. For one, the price has declined by more than 80% from its all-time high and is currently trading at the lowest level since February 28th. This decline has left a coin that is trading at a significant discount. Historically, bear markets don’t last forever. Therefore, there is a likelihood that its price will bounce back.
Finally, VeChain is still growing even though the coin price is struggling. For example, VeChain has inked multiple partnerships with some of the biggest companies in the world. For example, it has partnered with Direct Import Goods, PriceWaterhouseCoopers, and Renault. These partnerships are expected to keep growing.