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- VeChain’s revamped tokenomics ties VTHO rewards to active staking, reducing inflation by 72.2% and boosting network engagement.
- The integration of NFT staking broadens participation, positioning VeChain ahead in tokenized assets and decentralized finance adoption.
VeChain (VET) is making a decisive move to revamp its ecosystem, introducing a comprehensive restructuring of its tokenomics to encourage more active participation. With the broader cryptocurrency market struggling, this shift aims to realign incentives and reward users who contribute to the network’s health.
The upgrade primarily targets the VTHO gas token, which fuels transactions on the VeChain blockchain. Previously, VTHO was generated at a flat rate of 0.000432 per VET daily, regardless of a holder’s activity. This system led to an accumulation of unutilized VTHO in inactive wallets, particularly those held by exchanges, weakening the network’s overall engagement.
VeChain’s new model takes a different approach, tying VTHO rewards directly to the amount of VET staked. The change primarily benefits validators and delegators who actively participate in securing and validating transactions. By implementing this mechanism, VeChain aims to reduce VTHO inflation by 72.2%, ensuring that only those actively involved reap the rewards.
The Integration of NFT Staking
VeChain has expanded staking options beyond VET tokens to further boost engagement. Users can now stake non-fungible tokens (NFTs) alongside VET to earn protocol-level rewards. This strategy not only enhances user participation but also bridges the gap between VeChain’s existing ecosystem and the rapidly growing NFT market.
By integrating NFTs into the staking model, VeChain offers additional incentives for users to hold and interact with digital assets within its blockchain. This move could potentially drive further adoption, positioning the platform ahead of competitors in both the tokenized assets and decentralized finance (DeFi) landscapes.
VeChain’s ambitious roadmap for 2025 targets mass adoption by improving interoperability, governance, and the overall VET ecosystem.
Will VET Overcome Bearish Pressure?
VeChain is trading at $0.0287, down 36.22% from its 2025 peak of $0.0451. The 50-day SMA at $0.0397 and the 100-day SMA at $0.0451 indicate a bearish trend. With a daily range of $0.0265 – $0.0299, selling pressure remains high as VET struggles to regain momentum.
The 50-day SMA has fallen below the 100-day SMA, forming a bearish crossover. VET has lost over 52.4% from its December 2024 high of $0.060. The last bullish breakout saw a 110% gain in two months, but weak demand below $0.030 suggests further downside risk in the short term.
Immediate resistance stands at $0.032, while a break below $0.026 could trigger a drop to $0.022. Trading volume has declined by 18.6% over the last week, signaling weaker buyer interest. If VET fails to reclaim $0.035, it risks a prolonged bearish cycle, potentially testing $0.020 in the coming weeks.
