VeChain is following the market sentiment and has enjoyed some relief in 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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While buyers were able to thwart bears for the moment, there are still risks. 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.
VeChain managed to maintain its value despite the negative price movement for larger cryptos. This cryptocurrency will soon be deploying a major upgrade to its network that could provide more support.
VeChain Foundation has announced that the Proof-of-Authority 2.0 upgrade was deployed successfully on a testnet. This milestone is important for the Foundation’s goal of launching a mainnet.
This update will eliminate tradeoffs between the Nakamoto Consensus (BFT), and the Byzantine Fault Tolerance 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.
This consensus is designed to support companies using a secure, adaptive blockchain. 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 saidHere’s the update with its bullish case to the cryptocurrency VeChainThor
It’s a huge milestone for PoA2. VeChainThor Blockchain will now provide high-performance security with the finality gadget.
VeChain sits 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 remains bearish about crypto markets and believes that they will continue their 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:
So far, this bounce appears weak. This is most likely another bull trap that will precede the next round. I think $TOTAL could reach $670 to $730B by the time of a relief rally. That’s 17-25% below current levels.
These bids have been removed because we will likely see them again. $VETMinimum visit to 0.016 https://t.co/URERjQf0rS
— Justin Bennett (@JustinBennettFX) June 18, 2022