VeChain, VeThor Prices Surge Amidst FOMO

VeChain, an EVM-compatible blockchain, is utilized in supply chain operations, with VeThor facilitating gas payments.

In recent days, VeChain (VET) and VeThor (VTHO) prices have skyrocketed due to investors adopting a FOMO mentality.

VET has experienced a six-day upward trend and peaked at $0.05, which is one hundred percent higher than its year-to-date low and gives the stock a market capitalization of over $3.6 billion.

In the preceding half-week, the price of VeThor Tokens peaked at $0.0070, an increase of approximately 740 percent compared to its nadir in 2023. The market capitalization of the coin has surpassed $450 million.

The prices of VeChain and VeThor have exhibited strong performance among cryptocurrencies this week, coinciding with the increase in the crypto fear and avarice index.

The index has surged to the avarice zone at 75 due to the increase in industry inflows. This remarkable ascent of Bitcoin, which has risen from $20,000 in 2023 to more than $52,000, could persist.

The immediate cause of the rise of these two tokens was unknown. To begin with, the network’s mainnet activity has been relatively low, as demonstrated below.

As a result, the most plausible explanation is that after the rally began, most traders drove them higher out of FOMO.

The fact that the two tokens have been trending on social media platforms such as X and StockTwits further supports this claim. Confident analysts posit that the increase in value is probably due to forthcoming news.

Increased VeChain Liquidations

Nonetheless, many short sellers have been liquidated amidst this surge. The volume of quick liquidations reached an all-time high on February 11th. On that day, VET short liquidations surpassed $1.1 million, and by Thursday, they had increased to $1.21 million.

Additionally, recent data indicates that VeChain’s open interest in the futures market has increased substantially.

It reached a record-breaking $65 million on Thursday, the most it has done since March 22. When the interest was less than $10 million a few months ago, this represents a significant increase.

Open interest is a significant metric as it indicates the number of unfiled tokens currently outstanding on the futures market.

An elevated open interest value indicates heightened market demand. Futures and options on VeThor are not yet available on most exchanges.

To begin with, VeChain is an EVM-compatible blockchain network where developers can construct any form of decentralized application (dApp).

Additionally, some businesses utilize it extensively to streamline their supply chain operations. Gas payments within the VeChain network are conducted with VeThor, which is an integral component of the ecosystem.