VeChain’s latest rally reveals this about the state of VET in coming days
- VET’s social volume and development activity spiked, but TVL declined
- However, a few metrics and market indicators did show some bullish signs for VET
VeChain [VET] has been witnessing a price pump for over a week as it increased by more than 4%. The growth did not seem to have stopped, as according to CoinMarketCap, VET was up by over 3% in the last 24 hours. At the time of writing, it was trading at $0.02429 with a market capitalization of more than $1.7 billion.
Realistic or not, here’s VET market cap in BTC‘s terms
What’s fueling VeChain’s price surge?
Though the on-going bullish market contributed majorly to the price uptick, a few other developments in the VeChain ecosystem might have also played their roles. A notable development was the announcement of VeChain implementing fee delegation in its web wallet.
One of our most powerful features is 'fee delegation' – a protocol that removes the need for enterprises to manage transaction fees and a key step towards mass adoption of blockchain technology.
— vechain (@vechainofficial) April 4, 2023
For starters, fee delegation has allowed leading global enterprises to use the VechainThor public blockchain without paying transaction fees or managing crypto assets directly.
The official announcement mentioned that VeChain has implemented fee delegation in its official web wallet called VeWorld. This would eliminate the need for users to manage their own transaction fees. Furthermore, as per VeChain, the new development would help increase the blockchain’s adoption.
All positives here, is it?
Thanks to VET’s price action, the token’s popularity skyrocketed over the last few days. Santiment’s chart revealed that VET’s social volume was drastically up, proving its popularity. Not only that, but the latest fee delegation update also helped VET’s increase its development activity, which by and large is a positive signal for a network.
However, it was surprising to see a decline in the network’s value while its price was pumping. As per DeFiLlama’s data, VET’s TVL registered a downtrend over the last few days, which was concerning for the token’s bullish price movement.
Nevertheless, the drop in TVL did not seem to have much of an impact on VET as positive sentiments around the token remained high. VET’s Binance funding rate was also relatively high, indicating a positive demand in the derivatives market.
How much are 1,10,100 VETs worth today
Will the bulls continue to lead?
The good days might as well continue, as most of the market indicators were in the buyers’ favor. For example, the Moving Average Convergence Divergence (MACD) displayed a bullish crossover.
VET’s Money Flow Index (MFI) registered a sharp uptick, which looked bullish. The Chaikin Money Flow (CMF) also was above the neutral zone, further increasing the chances of a continued uptrend in the coming days.