- VeChain is in a multi-month downtrend.
- VET recorded a strong December performance, stoking expectations of a comeback.
- Social media and on-chain data indicate a revival of interest and activity.
The cryptocurrency market has seen several boom and bust cycles over the years, leaving many once-hyped projects dead by the wayside. However, VeChain, a seeming relic from the previous mania cycle, has shown new signs of life. Despite months of price stagnation, VeChain has roared back into contention since the start of December.
VeChain Shows Signs of Life
Since the start of December, VeChain has surged to a 2023 high of $0.041153, recording an 84-week high and growing around 180% in value from the September local bottom. VeChain closed the week beginning December 11 significantly below the $0.041153 top, at $0.02946, but this week sees VET mounting another retest of the yearly high.
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2023 has largely been a tough period for VeChain, as the enterprise-focused protocol consistently failed to break a multi-year resistance line around the $0.03 mark. While VET is currently back below this resistance level, the previous week’s surge has led investors to hope this is the start of a revival in the project.
VET Revival
Stoking investors’ hopes of a revival, VeChain has been trending on social media platform X. Michael Gu, advisor to VC firm Ozaru Ventures, commented that VeChain trending on social media once again is “nice to see.”
The last 24 hours also saw a massive spike in VET trading volume, growing 95% to $143.9 million over the period at the time of writing, indicating a flood of trading activity for the VET token.
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A recent development report by NowNodes highlighted a strong uptick in on-chain data requests for the VeChain blockchain, growing from 240 million requests in Q1 to 392 million in Q4. NowNodes added that this trend highlights continuous growth of node load and usage over 2023.
On the Flipside
- At its April 2021 peak, VeChain had a market cap valuation of $17 billion.
- Despite a strong December performance, VET is still 88.5% below its all-time high price of $0.28099, achieved in April 2021.
- VeChain’s recent performance coincided with a broader recovery in altcoin prices.
Why This Matters
Recent VeChain price action demonstrates that forgotten altcoins can potentially produce outsized returns during broader market rallies. However, while VeChain broke above its downtrend last week, it did not close above multi-month resistance, making talk of a comeback premature at this stage.
Read about VeChain’s protocol upgrade to Proof of Authority here:
VeChain (VET) Enters a New Era, Launching the Historic Proof of Authority (PoA) 2.0 Upgrade
Find out what the Economist said about Bitcoin and its stickability here:
Bitcoin Gains The Economist’s Favor as Indestructible Cockroach
