VeChain Heads For Consensus Update, Can VET Price Lessen Bearish Pressure?
VeChain follows the general sentiment in the market and has experienced some relief across low timeframes. The crypto market trended below the critical support zone during the weekend but saw it bounce during today’s trading session.
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Buyers have been able to push back bears in the short term but could still face further losses. At the time of writing, VET’s price trades at $0.02 with a 2% profit in the last 24 hours and an 11% loss in the last 7 days.
VET’s price trends to the downside on the 4-hour chart. Source: VETUSDT Tradingview
Despite the downside price action for larger cryptocurrencies, VeChain has managed to preserve its value over the past week. This cryptocurrency is on track to deploy a major update to its network which could be providing additional support.
The VeChain Foundation announced that the upgrade, dubbed Proof-of-Authority (PoA) 2.0, was successfully deployed on a testnet. The Foundation claims this milestone marks important progress towards a mainnet launch.
The update is set to remove the tradeoffs from the Nakamoto Consensus and Byzantine Fault Tolerance (BFT) consensus. The Foundation claims that this upgrade could use a new wave of “mass adoption” as the blockchain VeChainThor will provide its users with data finality and more scalability.
Designed to provide companies with a secure blockchain, use-case adaptive, and support corporate use cases. The VeChain community approved this consensus back in 2021, and once it’s deployed, will make this network one of the only blockchains running on a hybrid consensus.
The Foundation claims that PoA 2.0 will introduce a “finality gadget”, an add-on mechanism that will validate blocks twice. First with the Nakamoto consensus and then with the “finality gadget” to make transactions “impossible to revert”.
VeChain Foundation’s Chief Scientist Peter Zhou said the following on this update and its bullish case for the blockchain VeChainThor:
It’s a huge milestone for PoA2. With the finality gadget, VeChainThor blockchain is going to provide the state-of-the-art security while maintaining its high standard of performance.
VeChain Sitting On The Danger Zone
As VET’s price traded downside, analyst Justin Bennett claimed a revisit of the levels at $0.01 seemed “likely”. Bennett has been bearish on the crypto market and expects the total crypto market to continue its decline.
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This could spell more pain for VET’s price, at least in the short term, but provide long-term holders with a buying opportunity as the network prepares to implement PoA 2.0. Bennett said:
This bounce looks weak so far. Most likely another bull trap before the next round of selling. I still think we see $TOTAL reach the $670-$730B area before a relief rally. That’s 17-25% below current levels.
— Justin Bennett (@JustinBennettFX) June 18, 2022