- Despite the bearish sentiment and a 17.49% drop in futures open interest, market analysts suggest VeChain may follow historical trends and stage a parabolic rally.
- During the 2020 COVID market crash, VET plummeted by 81% before rebounding with a 15x surge by August 2020 and subsequently achieving a 30x rally.
Despite the VeChain ecosystem making significant progress over the past few months, its native crypto VET has failed to catch up with the developments while instead responding to the broader crypto market correction. Over the past month, the VET price has corrected by 30%, in tune with the fall in some of the top altcoins like Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and others. Following this correction, market analysts believe that VeChain (VET) could be eyeing a parabolic rally, as per the historical trends.
VeChain’s Resilience: Lessons From Past Market Cycles
During the March 2020 COVID market crash, the VeChain price experienced a steep 81% crash, with market sentiment for the altcoin hitting an all-time low. Many believed the project was doomed, with widespread declarations that VeChain was finished and the bear market would persist indefinitely.
However, defying all the optimism, VET bounced back confidently, with its price soaring 15x by August 2020. After a 60% correction that shook out weaker investors, VET embarked on an extraordinary 30x rally during the subsequent bull run.
With the unfolding of the current crypto market cycle, investors have started to revisit the past trends, expecting another parabolic rally for VET to follow, as noted earlier.
As of press time, the Vechain price is trading 7.77% down at $0.02316 with its market cap diving under $2 billion. Also, the 24-hour daily trading volume has surged by 44% to more than $99 million for VET.
Currently, the derivatives data from Coinglass shows that the VET futures open interest has dropped 17.49% to $44 million. Thus, the trader sentiment around the altcoin seems to be bearish.
Key Developments in the VET Ecosystem
Over the past few months, the VeChain ecosystem has registered some key advancements. As mentioned in our previous report, February was a landmark month for this ecosystem as the blockchain network recorded several achievements, including protocol upgrades, technical advancements, and strategic partnerships.
A significant highlight was the network’s sustainability efforts, with over seven million sustainable on-chain actions recorded during the month. VeChain’s Cleanify initiative played a key role, capturing an average of 118,000 daily actions, reflecting growing adoption and engagement with its environmentally focused solutions.
Additionally, VeChain unveiled its Renaissance project, thereby introducing a new staking system, different from the existing passive rewards. The reorganization aims to boost network engagement through an NFT-based staking model while reshaping VeChainThor’s tokenomics, as highlighted in our previous story.
Under the Renaissance paradigm, Vechain would shift away from automatically generating VTHO from VET holdings. Instead, users must actively stake their VET to earn rewards, promoting greater decentralization and network security. The key feature of this transition is the introduction of Staking NFTs. This allows participants to lock up their assets while benefiting from a more dynamic and engaging reward system.
