VeChain is making 7% gains and it could outperform ETH, here’s why:


VeChain has been trading in the green for the past day as the crypto market shows signs of a possible recovery. The cryptocurrency could benefit from positive developments around its most recent partnerships.

Related literature | VeChain (VET) Sending Bearish Signals? Analyst Points Key Levels

At the time of writing, VET is posting a 7% gain in the past 24 hours, outperforming larger cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), which posted gains of 3.3% and 4.9 respectively over the same period. % to note.

BOLD with small gains on the 4-hour chart. Source: VETUSDT Tradingview

in a official message, the VeChain Foundation revealed its involvement in establishing the “Shanghai Association Standards For Blockchain Service” certification. Created to “accelerate” the growth of blockchain-based products and services, this certificate came into effect in early February 2022.

The Foundation worked with the Shanghai Municipal Administration of Market Supervision and the Shanghai Certification Association to propose the standard. In that sense, VeChain provided “significant technical input” based on the project experience, the post claimed.

The project’s lead scientist, Dr. Peter Zhou, in collaboration with other senior blockchain experts, has also provided guidance to facilitate the creation of this standard. The message added:

The main purpose of the standard is to provide a robust and proven rating structure of current blockchain-enabled enterprise services.

The certification set out the requirements for entities seeking to offer blockchain-as-a-service products and applications, including their technical, regulatory and management obligations. In addition, it provides the necessary evaluation tools and “approaches” to certify potential companies that want to build their own blockchain-based application or use case.

The VeChain Foundation claims the standard is “widely applicable”, while adding the following:

It also includes universal guidelines for technology providers looking to provide blockchain-based business services, while providing a valuable reference standard for enterprises seeking to define high-quality, credible blockchain-based digital services.

Why VeChain (VET) Could Continue to Withdraw Profits

The ultimate goal of this standard and the associated certification initiative is to make VeChain mainstream. As the Foundation mentioned, the project has been involved in several initiatives with a similar goal and has sought to demonstrate its “technical capabilities and ability to develop standardized, scalable designs.”

In addition to the above, VeChain has made improvements to its mainnet to become the hub for business use of blockchain technology. The Foundation’s efforts have seemingly translated into the growth of its ecosystem.

As NewsBTC reported, the network saw the launch of a new decentralized exchange (DEX) called ZumoSwap and hinted at the launch of a new stablecoin.

Related literature | VET Breaks Key Trendline, Why VeChain Could See Huge Explosion

VeChain’s recent bullish price action could become the new normal for the coming months, according to a pseudonym analyst. As seen below, in the monthly chart for the VET/ETH trading pair, VeChain has entered a critical support area that has been followed by bullish price action in the past, the analyst said:

We’ve been underperforming $ETH for 10 months now. In 2019, 2020 & 2021, after retesting the green zone, it only took 3 months to break through the old ATH. Assuming we have a retest this or next month, $VET ATH will be in May/June 2022.

Source: Nordes via Twitter

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