VeChain's Future: Can It Transform Supply Chain Management?
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Chapter 1: Overview of VeChain
VeChain (VET) stands out as one of the few cryptocurrencies with a practical, functioning product already in use. The innovative team behind it is taking a unique approach by utilizing VeChain's blockchain to monitor and manage products throughout the supply chain. In a globally interconnected marketplace, where products are manufactured across various countries rather than centralized in one location, effective product tracking becomes crucial. VeChain lays the groundwork for this through its blockchain technology.
Notable companies have begun to leverage VeChain's solutions. For instance, online retailers are utilizing it to securely track their products, thus avoiding returns fraud. Insurance firms can utilize the blockchain connection to verify claims precisely during insurance processes. Additionally, Renault, a major automobile manufacturer, employs VeChain to validate essential data, including odometer readings, maintenance records, and repair histories.
With this solid foundation and proven functionality, one might wonder if the tradable VeChain token, VET, could see a rise in value due to its successes. In this analysis, we will explore historical price movements and gather insights from leading experts to create our forecast for VeChain from 2021 to 2025.
Chapter 1.1: New Initiatives and Collaborations
VeChain serves as the backbone for a new application designed to record COVID-19 test results. Developed in collaboration with I-Dante, the E-HCert app is currently operational in a hospital in Cyprus. The app's test results play an essential role in the arrival and entry procedures at Larnaca International Airport. After testing, patients receive unique credentials to access their results securely stored on the blockchain. The developers have ensured that the app complies with the General Data Protection Regulation (GDPR), providing secure communication between the patient, laboratory, and authorities. The app is projected to handle data for approximately 100,000 individuals annually.
Section 1.2: Understanding VeChain
At its core, VeChain focuses on blockchain-driven supply chain management. It employs Distributed Ledger Technology (DLT) to enhance and streamline business processes associated with supply chains. Acting as a central authority, it aims to foster transparency and trust across a unified platform. Originally introduced as VEN, VeChain transitioned to VET following the launch of its Thor Mainnet. The project is spearheaded by the Chinese company BitSe, which has facilitated close collaboration with Chinese authorities to ensure smooth regulatory processes for widespread economic adoption.
VeChain's solutions have a wide array of applications in product and supply chain management. For example, in healthcare, small NFC and RFID chips can trace medications, helping to combat the burgeoning black market for pharmaceuticals. This tracking is achieved through a digital twin on the blockchain. The ecosystem utilizes two tokens: the tradable VET token, which functions as a payment medium, and the VTHO token, which operates similarly to gas on NEO's blockchain.
Chapter 2: Partnerships and Their Significance
Partnerships are vital for the longevity of any cryptocurrency initiative. A project can only attract attention from businesses and investors if it showcases practical use cases. VeChain proudly lists a variety of partners. Alongside previously mentioned entities like Renault and the Chinese government, the hotel platform Travala.com accepts VET as a payment option for its approximately 2.2 million hotels. This demonstrates VeChain's cross-industry utility. Notably, the luxury brand Givenchy uses VeChain to authenticate high-end products, such as handbags and garments, thus combating counterfeiting. Additionally, partnerships with Hyperledger and PwC further solidify VeChain's standing in the industry.
Chapter 3: The Role of the VET Token
Our analysis of VeChain naturally centers around the VET token. But what is its role? Primarily, it serves as a means to pay for services on the network. Users wishing to access specific information from the blockchain or to input data must pay a small fee. During the Initial Coin Offering (ICO) in 2017, an impressive $20 million was raised through an ERC-20 token named VEN, which could later be converted into VET tokens at the mainnet's launch.
Chapter 4: VET Token Price Trends
To better understand the VET token's performance, we will review expert opinions and historical price movements. Since late 2018, the price of VET has fluctuated between $0.002 and $0.009, showing significant volatility with notable price jumps. The token gained substantial attention in 2020, reaching $0.02 amid a price surge that saw an increase of approximately 400% in just over a month. Following this, the price has remained above the psychologically important $0.01 threshold up to January 2021.
The underlying technology's success appears to be drawing in more investors, especially during the concurrent bull market, which propelled VET's price to over $0.03 shortly after the new year. On January 21, 2021, VET reached an all-time high of $0.035, placing VeChain at 21st among cryptocurrencies by market capitalization, with a total supply of 86.712 billion VET and over 64 million VET currently in circulation.
Chapter 5: Expert Predictions for VeChain (2021-2025)
The technology is functioning, numerous partners endorse the project, and the price is on an upward trajectory. This suggests a promising future for VeChain, but what do cryptocurrency experts predict regarding its price? While expert opinions should only serve as a guide rather than definitive advice for purchasing decisions, here are some insights:
- Coinswitch: Forecasts a highly positive price trend for VeChain, anticipating the VET token could reach $0.38 by 2023, driven by strong partnerships with entities like PwC and Renault. They expect VET could exceed $1 in subsequent years.
- Wallet Investor: This typically cautious analyst views VeChain as a worthwhile investment. They project the VET token might hit $0.04 in 2021 and potentially climb to $0.05 by mid-2022, continuing to rise to $0.079 by 2024 and peaking above $0.09 by 2025.
- Digitalcoinprice.com: Aligning with Wallet Investor's outlook, they predict a price of $0.045 by the end of the year, increasing to $0.064 by 2023, and eventually surpassing $0.09 by 2025, indicating a potential 200% gain from early 2021 levels.
Conclusion: A Promising Future for VeChain
Our analysis of VeChain from 2021 to 2025 illustrates a project with a functioning product, strong partnerships, and positive growth prospects. The collaboration with notable companies and authorities, including Renault, PwC, and the Chinese government, underscores VeChain's credibility. Expert forecasts consistently indicate a favorable price trend, suggesting potential price increases of 200% are plausible.
Investors looking to purchase the VET token should conduct thorough research on VeChain and its technology. Expert predictions can serve as a valuable tool in the decision-making process.