Is VeChain’s VeThor Token a Good Investment?
Investors are interested in VeThor's (VTHO) price prediction after seeing the altcoin gain 1,500 percent in 2021.
Oct. 6 2021, Published 10:45 a.m. ET
If you’re looking for the next cryptocurrency to explode, you may want to consider VeThor (VTHO). The altcoin has gained about 1,500 percent in 2021, but is still far below its $0.042 all-time high. What’s VeThor price prediction? Is VTHO a good investment?
VTHO is one of the two tokens that power the VeChainThor blockchain. The other is VET. VeChain, another Ethereum-type blockchain, is designed for building and running enterprise apps. VeChain’s technology is being adopted in the supply chain sector to speed up and make processes more efficient.
What's VeThor used for?
In the VeChain network, VET facilitates value transfers, while VeThor facilitates transactions and processes such as smart contracts. The dual token structure ensures fee stability for developers on VeChain while giving investors diversified exposure to the blockchain.
Is VeThor (VTHO) a good investment?
Programmable blockchain tokens' value tends to increase with the adoption of their underlying blockchain. For example, the adoption of the Ethereum blockchain for building DeFi apps and trading NFT products has driven up the value of its Ether token.
In fact, Goldman Sachs predicts that Ether could overtake Bitcoin as the world’s dominant cryptocurrency because of Ethereum’s growing adoption. Solana’s SOL token and Cardano’s ADA token have also skyrocketed as the adoption of their underlying blockchains expands.
Similarly, VeThor should appreciate as VeChain's adoption grows. PwC China has tapped VeChain to power its Air Trace platform, which accelerates innovation and the building of application software. Companies can use the platform to strengthen their environmental, social, and governance programs and reporting.
VeThor's (VTHO) price prediction
Another factor that will affect VeThor is token supply. The supply of VTHO is tied to the supply of its sister crypto, VET, which is capped at 86 billion tokens.
The capped supply brings scarcity, which can boost a token’s value. This is evident in Bitcoin, which some investors see as digital gold.
In addition to having a capped supply, VeThor is made rare through token burns. As much as 70 percent of VeThor paid as transaction fees is destroyed. VeThor could also get a boost from a Coinbase listing. Although VeThor is just above $0.01 currently, it could reach $1 by 2025.