VeChain Upcoming Update, Can VET Price Reduce Bearish Pressure?

VeChain followed the general sentiment in the market and experienced some relief in a shorter period of time. The cryptocurrency market fell below a key support area over the weekend but bounced back during today’s session.

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Buyers have been able to repel the bears in the short-term, but could still face further losses. At the time of writing, VET is trading at $0.02 with a 2% gain over the past 24 hours and an 11% loss over the past 7 days.

The price of VET is trending down on the 4-hours chart. resource: VETUSDT trading view

VeChain has managed to maintain its value over the past week despite the larger cryptocurrency falling in price. The cryptocurrency is expected to receive a major update to its network, which may provide additional support.

VeChain Foundation Announce The upgrade, known as Proof of Authority (PoA) 2.0, has been successfully deployed on the testnet. The foundation claims this milestone marks an important step forward for the mainnet launch.

This renew Designed to remove the trade-off between Nakamoto consensus and Byzantine Fault Tolerant (BFT) consensus. The foundation claims that the upgrade could lead to a new wave of “mass adoption,” as blockchain VeChainThor will provide users with data finality and greater scalability.

Designed to provide companies with a secure blockchain, adaptive use cases and support enterprise use cases. The VeChain community ratified this consensus back in 2021, and once deployed, will make the network one of the only blockchains to run on hybrid consensus.

The foundation claims that PoA 2.0 will introduce “finality gadgets,” an additional mechanism that can verify blocks twice. First Nakamoto consensus, then “finality gadgets” that make transactions “unrecoverable”.

VeChain Foundation Chief Scientist Peter Zhou Say Here’s a look at the update and its bullish case for blockchain VeChainThor:

This is a huge milestone for PoA2. With the finality gadget, the VeChainThor blockchain will provide state-of-the-art security while maintaining its high standard of performance.

VeChain sits in danger zone

Analyst Justin Bennett claimed that a revisit of the $0.01 level seems “likely” as the price of VET fell. Bennett has been bearish on the crypto market and expects the entire crypto market to continue falling.

Related reading | Long-term Bitcoin holders lose the most since 2019

This could add more pain to the price of VET, at least in the short term, but provides a buying opportunity for long-term holders as the network prepares to implement PoA 2.0.Bennett Say:

So far, the rebound looks weak. Another bull trap is likely to emerge before the next sell-off. I still think we see $TOTAL hitting the $670-$730B area before a relief rally. This is 17-25% below current levels.

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