VeChain’s Real-World Adoption: Why Slow and Steady Might Win and Lead to Sustainable Growth

• VeChain has been tipped for greatness for its organic growth and solid development, positioning it above the 2021 all-time high. 

• The value proposition of VET is said to have more room for improvement, while its tokenomics reportedly needs an update. 

Vechain’s (VET) unprecedented adoption over the past few years makes it one of the fastest-growing ecosystems in the blockchain industry. As we highlighted recently, VeChain has been patronized by heavyweight companies, including “BMW, Walmart China, Groupe Renault, AT&T, T-Mobile, and LVMH.”

Its incredible services have also been leveraged by Decentralized Finance (DeFi) platforms such as “APEWorld, vet.domains, VTHO Exchange, Vechain Rewards, Empty Wallet, Fiat On-Ramp, Mugshot, Cleanify, SQUAD VeChain, and VeBetterDAO.”

Adding to its impressive evolution, it announced the launch of a new tokenization platform, MaaS, in March, with MotoGP champions Gresini Racing becoming the first enterprise user immediately after the launch. 

Highlights of Key Achievements and Downside of VeChain (VET)

After assessing the growth and adoption of the VeChain network, an X handle focusing on Venture Capital and crypto funding management, M_Value, has highlighted some of the key achievements and important areas for upgrade. 

1/ While everyone’s hyped about new shiny chains, let’s talk about one that’s been quietly making solid progress— @vechainofficial. Unlike many others, #Vechain doesn’t have the constant noise from VCs (a positive sign) and no more major token unlocks (another plus). pic.twitter.com/vfYMcIqdh4— M_Value Ⓥ (@_AndyVIE_) August 20, 2024

According to them, VeChain has solidly progressed to surpass its 2021 levels when VET peaked. Per their observation, the active accounts and clauses of the network have steadily risen, thanks to the growing adoption and real-world utility of the VeBetterDAO. 

Speaking on other chains, the X page mentioned that they mostly thrive on hype coupled with the deployment of bot users and volume. 

Many new chains, despite being hyped as the next big thing, are inflating with fake algo-bot volume & user data. They host few if any, notable dApps—mostly just #DeFi  apps focused on YF, with little to no real-world value, yet they are still valued in the billions.

Contrary to this, VeChain resorts to a different approach – relying on organic numbers, real-world usage, and business activity. While admitting that this is a difficult path to take, M_Value believes that its effort could pay off in the long run. 

Using Aave for reference, M_Value stated that many established projects within the Decentralize Finance (DeFi) space offer better value relative to price. To compete well without compromising its values, VeChain has chosen to build its ecosystem effectively in the background. 

The Downside and Future Consideration

According to the post, VeChain has a lot of improvement to make, especially its tokenomics, despite its impressive growth. Its $VTHO generation vs. burn ratio, for instance, suggests that the value proposition of its native token (VET) could be optimized.

In the future, VeChain is expected to onboard new Decentralized Applications (DApps) and motivate new companies to integrate and utilize the network using the existing user base. 

As Benjamin Graham wisely said, “The intelligent investor is a realist who sells to optimists and buys from pessimists.” Trendy, overvalued projects may shine in the short term, but it’s the “boring” projects with real value that stand the test of time. Remember, sometimes it’s the under-the-radar projects that end up being the most successful in the long run. Keep an eye on the progress of VeChain.

At press time, XRP was trading at $0.023 after surging by 3% in the last 24 hours.