VeChain (VET) Rises on Whale Buying, Coinbase Hopes
VeChain went through another rally, though price action is highly risky and possibly based on FOMO.
VeChain (VET) rose more than 15.5% on Monday, to reach $0.0077. The asset, which also repays through the VeThor reward token, is going through one of its usual rallies, and the price action is seen as unstable.
VeChain is a project popular in China, offering regular news of use cases and partnerships. But the coin is also capable of significant rallies, even as the rest of the market remains stagnant. VET has not been listed on Coinbase, but the idea has been bandied about, especially if price action and liquidity remain high.
In the past, VET has been volatile, regularly spiking, then dropping as much as 60%. The asset is highly risky, though the potential for rapid appreciation makes it appealing due to its sub-penny prices.
VET is one of the few altcoins to break out in November, doubling its price since it stagnated around $0.003. VET rose as Chinese traders returned to altcoins, following a renewal of optimism and some pure speculation.
VET also gets a boost from about 30% of its trades concentrated on Binance, where a quick price hike can be achieved.
The other reason for VET price appreciation is the buybacks from the VeChain Foundation. The recent “whale buyers” behavior noted in relation to VET looks like the deliberate action of the foundation. Earlier, the organization had bought up $25 million worth of VET.
Decreasing the supply, not only through token burns, but by actual market buying, also immediately boosts market conditions. The buying may also spark outside traders, and cause generally increased interest.
VeChain has its chief use case as becoming a token for supply chain management. VeChain has partnered with Walmart China, offering a tool to track inventories.
But the chief reason VET is in demand is that it offers more vigorous price action and the chance for faster gains, as Bitcoin (BTC) and major coins are stagnating again.