VeChain explodes before submerging, why?
- The crypto market just saw the sharpest decline in 2021, falling more than 15% in 24 hours.
- In the event of a power outage in the Xinjiang region, Bitcoin hash rates dropped from 157 exahashes per second to just 105 exahashes per second.
- Before the weekend, VeChain had a spectacular 2021 and announced a partnership with PricewaterhouseCoopers (PWC) a few days before autumn.
- VeChain was not excluded from the crash and fell nearly 40% over the weekend.
- After the slump, VeChain has bounced back and is trading above $ 0.24, up more than 17% in the past 24 hours.
Over the weekend, the crypto market experienced one of the sharpest slumps of 2021, with VeChain being one of the losses. Before the slump, when vocational training accounted for almost 40% of its value, the coin rose steadily.
The market slump
Last weekend, the crypto market was hit by the sharpest drop in prices in 2021. The leading crypto, Bitcoin, lost nearly 15% in 24 hours. An hourly candle on April 18 showed a drop of around $ 8,000, pushing Bitcoin to a low of $ 50,931.
The decline began shortly after reports claiming the U.S. Treasury Department was planning to fight financial institutions for money laundering through digital assets.
Another reason for the market slump could be the power outage in Xinjiang, an important mining region in China. According to BitInfoCharts, hash rates on the Bitcoin network dropped 33% from April 15 (from 157 exahashes per second to just 105 exahashes per second).
While that may not be enough to explain the decline, Ledgermatic CEO Luke Sully believed that the people “may have been selling the news of the power blackout in China, and not the impact it actually had on the network ".
On the downside
- VeChain coped with the market slump with serenity. The coin is already riding the bull.
- In the past 24 hours, VET has increased more than 17% and is now trading at $ 0.245.
- The jump gives VET a market cap of $ 15.8 billion, making it the 13th largest digital asset.
The reasons for VeChain's rise before diving in
Before the slump that saw VeChain drop nearly 40%, the project was on an impressive growth spurt in 2021. At the same time, its original token had also risen by more than 400% in the past two months.
Vocational Training opened the year at $ 0.01878, but now the coin is changing hands at $ 0.245 apiece – a price increase of more than 1,200%. An impressive run without a doubt, but why has VeChain soared?
The week before the decline, VET rose from $ 0.1397 to $ 0.2546 on April 18. Two major news behind the price hike were the announcement of VeChain's partnership with PricewaterhouseCoopers (PWC) and Coinbase's debut on Nasdaq. That took VET to an all-time high of $ 0.2778.
VeChain for the future
Since VeChainThor started in June 2018, it has been one of the most advanced crypto projects. The network has successfully focused on addressing various real-world problems with blockchain technology.
- Last November, Health Evolution used their solution to fight counterfeiting and increase user confidence in their products.
- In December, VeChain partnered with the Royal Melbourne Institute of Technology (RMIT) to find innovative ways to drive the growth of the blockchain industry.
- In January of this year, hospitals in Cyprus began certifying the delivery of coronavirus vaccines using a VeChain blockchain solution.
Through VeChain's new partnership with PWC, the crypto project will support its customers in integrating DLT technology (Distributed Ledger Technology) into their operations. The partnership underscores the dedication and hard work of the VeChain development team and shows why VET is expected to continue an upward trend in the coming months.
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