VET, the native cryptocurrency of VeChain, experienced a notable price surge of over 12% following the announcement of its listing on CEX Coinbase. VeChain (VET) and VeThor (VTHO) have been added to the Coinbase roadmap, signifying the exchange’s intent to list these assets.
This listing enhances VET’s exposure and highlights the increasing adoption of the VeChain ecosystem.
VeChain Ecosystem and Tokenomics Explained
VET serves as the primary native utility coin within the VeChain ecosystem. It is crucial in facilitating remittance transactions and enables users to participate in network governance through staking. The VeChain blockchain, known as the VeChainThor ecosystem, operates as a public Layer-1 blockchain and smart contract platform, utilizing a Proof-of-Authority (PoA) consensus mechanism.
In the PoA system, consensus is achieved by nodes proving their authority to validate user transactions and produce new blocks. Nodes must acquire an institutional identity registered with the VeChain Foundation to participate in the VeChain network consensus. Although VeChainThor is a public blockchain, the permissioned nature of its consensus protocol allows the VeChain Foundation to accept or reject node applications selectively.
The primary objective of the VeChainThor network is to democratize and decentralize supply chain management. It empowers businesses to codify their operations into smart contracts and deploy them on the blockchain, enhancing transparency throughout the supply chain.
Tokenomics within the VeChainThor ecosystem involves a dual-token economy. The primary token, VET, is a utility coin used for remittance. On the other hand, the secondary token, VeThor (VTHO), is generated from VET and serves as a means to pay for smart contract execution, network transaction fees, and gas fees.
This dual-token system ensures that network fees remain stable and independent of the price volatility of VET, making business transactions within the VeChainThor ecosystem more predictable and suitable.
The VeChainThor ecosystem operates on two levels. The blockchain operations are performed at the lower level, with VTHO covering the associated costs. At the upper level, VET facilitates the circulation of business management and the development of decentralized applications (DApps), promoting the growth and utilization of the ecosystem. This dual-level structure enables seamless operations within the VeChainThor network.
After reaching a recent low of $0.014 on June 16, 2023, VET has been on an upward trajectory, with six out of the past seven days showing gains. The Coinbase listing announcement fueled this growth, leading to a four-day winning streak. VET’s value has risen by 10% in the last 24 hours and has exhibited an impressive 25% increase in value over the past week.
The Coinbase listing announcement also significantly impacted VeThor (VTHO), resulting in a substantial jump of nearly 13%. From June 19, VTHO displayed a five-day winning streak, with a 12% increase in the last 24 hours alone.
Continued Adoption of VeChain
Beyond the Coinbase listing, the VeChain blockchain ecosystem continues to witness growth and adoption. Collaborations with players like Samsung Heavy Industries demonstrate the practical applications and value that the platform provides to businesses.
The listing of VeChain (VET) and VeThor (VTHO) on Coinbase represents a significant milestone for the VeChain ecosystem, showcasing its increasing prominence within the crypto market.
The Coinbase listing provides enhanced exposure and liquidity for VET and VTHO, contributing to their price appreciation. As VeChain continues to experience adoption growth and real-world applications, the Coinbase listing reinforces the project’s potential and paves the way for further development and expansion.