Why did the price of VET fall?

VeChain (VET) dropped 1.22% in the past 24 hours, continuing a 21.4% decline over the last 30 days. This downward trend matches the overall weakness in the cryptocurrency market, which saw a 0.86% drop in total market value. Three main factors are driving this movement:

1. Changes to Staking Rewards – Binance will stop giving VTHO rewards for VET flexible savings products starting in 2026, reducing short-term incentives for holders (Binance).
2. Technical Price Drop – VET’s price fell below a key support level at $0.0105, triggering automated selling.
3. Altcoin Market Weakness – Bitcoin’s market dominance is at 59.1%, indicating investors are moving money away from altcoins like VET.

Deep Dive

1. Staking Reward Changes (Negative Impact)

What happened: Binance announced it will stop giving VTHO rewards for VET flexible savings accounts starting January 2026. This change doesn’t affect locked staking but removes a way for casual holders to earn passive income.

What this means:

• Some holders might sell their VET before the rewards end.
• VET becomes less attractive compared to other coins that still offer rewards.
• Trading volume dropped 13% to $20.6 million after the announcement, showing less demand.

What to watch: Whether holders move their VET to Binance’s locked savings or to other platforms like StarGate NFT staking.

2. Technical Price Breakdown (Bearish Signals)

What happened: VET’s price fell below its 7-day and 30-day moving averages ($0.01043 and $0.01213 respectively). The Relative Strength Index (RSI) is at 35.15, indicating the coin is oversold but not yet showing signs of recovery.

What this means:

• The $0.010 price level is now a key support point. If it breaks, the next target could be $0.00955, the low from December.
• The MACD indicator shows a slight positive shift, suggesting possible price stabilization, but low trading volume means confidence is weak.
• Fibonacci retracement points to $0.00955 as the next major support level.

3. Altcoin Market Sentiment (Mixed Effects)

What happened: Bitcoin’s dominance in the market rose to 59.1%, while the Altcoin Season Index is at 19, signaling a strong preference for Bitcoin over altcoins.

What this means:

• Investors are favoring safer assets like Bitcoin and Ethereum amid economic uncertainty.
• VET’s price is closely linked to Bitcoin’s movements, making it vulnerable when Bitcoin sells off.
• However, VeChain’s partnerships with big companies like Walmart and BMW offer some protection from pure market speculation.

Conclusion

VeChain’s recent price drop is influenced by Binance’s changes to staking rewards, technical price weaknesses, and a general shift away from altcoins. While upcoming upgrades like Hayabusa’s move to a delegated Proof of Stake (dPoS) system could improve VeChain’s long-term prospects, the short-term price depends on holding above $0.010.

What to watch: Will VET hold its 2025 low of $0.00955, or will Bitcoin’s dominance rising above 60% cause more selling? Keep an eye on the $0.010 to $0.0105 range for signs of buyers stepping in.

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What could affect the price of VET?

VeChain’s price is balancing between gains from business adoption and challenges from the broader crypto market.

1. Hayabusa Upgrade Impact – New staking rules may reduce the supply of $VET.
2. Enterprise Adoption Pace – Real-world partnerships are growing, but corporate decisions take time.
3. Crypto Market Sentiment – Altcoin activity depends on Bitcoin’s market share dropping.

Deep Dive

1. Hayabusa Tokenomics Overhaul (Mixed Impact)

Overview: In December, VeChain introduced the Hayabusa upgrade, switching to a Delegated Proof-of-Stake system. Now, the generation of VTHO tokens depends only on staked $VET (VeChain). The upgrade also burns all base transaction fees, which reduces the total VTHO supply and encourages users to lock up $VET for longer periods using StarGate NFTs.

What this means: Because fewer VTHO tokens are created passively, there could be less selling pressure on $VET, potentially supporting its price if more people stake their tokens (7 billion VET were staked as of December). However, the high entry requirement of 25 million VET to become a validator might slow down decentralization, which is important for attracting institutional investors.

2. Enterprise Traction vs. Competition (Bullish Risk)

Overview: VeChain has real-world partnerships with companies like Walmart China, BMW, and 4ocean, showing its usefulness in supply chain tracking. But competitors such as Hedera and Chainlink are also targeting similar industries with newer technology (Cryptonewsland).

What this means: VeChain’s 5 million+ active VeBetterDAO users show strong adoption, but for the price to rise significantly, the company needs to speed up the growth of enterprise clients beyond the current 50 live applications. Delays in launching major client projects could keep the price down, continuing the 78% drop seen over the past year.

3. Crypto Market Liquidity Cycles (Bearish Risk)

Overview: Bitcoin currently holds 59.1% of the crypto market, and the altcoin season index is at 18, indicating a strong Bitcoin dominance phase (CMC Global Metrics). This creates challenges for $VET. However, VeChain’s turnover ratio of 0.0232 is higher than some competitors like HBAR (0.015), which might help it recover faster.

What this means: If investors start moving money into altcoins, $VET could benefit and test support levels between $0.0095 and $0.011 from 2023. But if Bitcoin dominance stays high, the recent 40% price drop over 60 days could continue.

Conclusion

VeChain’s future price depends on how quickly it can grow enterprise adoption compared to competitors while dealing with a tough market for altcoins. The Hayabusa upgrade introduces deflationary pressure through staking but will take time to affect supply significantly. Keep an eye on enterprise partnership announcements in early 2026 and Bitcoin’s market share—if Bitcoin dominance falls below 55%, $VET could rebound toward $0.015. The key question: can VeChain’s practical business uses overcome the “beta trap” that older Layer 1 blockchains often face?

What are people saying about VET?

VeChain’s community is divided between excitement over its real-world uses and concerns from technical analysis. Here’s what’s trending:

1. Technical experts warn of possible further price drops
2. The Hayabusa upgrade and new staking options boost optimism
3. Strong business partnerships contrast with little price movement

Deep Dive

1. @Manofbitcoin: Bearish outlook targets $0.0075 📉

“Resistance between $0.0154 and $0.0208 keeps downward pressure strong”
– @Manofbitcoin (8.5K followers · 9.9K impressions · 2025-12-20 23:20 UTC)
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What this means: The chart shows ongoing selling pressure on VeChain (VET), with important support around $0.0090. If the price falls below this level, it could lead to panic selling.

2. @Auxeszn: Enterprise adoption story gains momentum 🏭

“VeChain solves real business problems – unlike DeFi and NFT chains”
– @Auxeszn (804 followers · 7.4K impressions · 2025-12-20 21:01 UTC)
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What this means: This is a positive sign for the long term. VeChain’s blockchain is being used in real industries like supply chain management and sustainability, setting it apart from more speculative projects.

3. @vechainofficial: Hayabusa upgrade launches 🚀

“StarGate staking now live – 5 billion VET already locked”
– @vechainofficial (627K followers · 15.8K impressions · 2025-11-17 13:25 UTC)
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What this means: This is somewhat positive. Staking helps reduce selling pressure by locking up coins, but VET’s price is still 78% below its 2025 peak despite ecosystem growth.

Conclusion

The overall view on VeChain is mixed. Developers highlight its growing use in business, while traders are cautious about key support levels. Keep an eye on the $0.009–$0.010 range: Holding this level could support buying interest, but falling below it might cause a wave of forced selling. The main puzzle remains why strong adoption hasn’t yet led to higher prices.

What is the latest news about VET?

VeChain is navigating recent market challenges with key upgrades and growing real-world use. Here’s a quick look at the latest developments:

1. Hayabusa Mainnet Upgrade (December 9, 2025) – VeChain switched to a new system called Delegated-Proof-of-Stake (DPoS) and introduced deflationary token features.
2. Binance Ends VTHO Rewards for Flexible Products (January 1, 2026) – Users with flexible VET holdings on Binance will no longer earn VTHO rewards, but those with locked staking remain unaffected.
3. Wanchain Cross-Chain Bridge Launch (July 10, 2025) – VeChain connected to over 40 blockchains, including Bitcoin and Ethereum, to improve liquidity and decentralized finance (DeFi) options.

Deep Dive

1. Hayabusa Mainnet Upgrade (December 9, 2025)

What happened: VeChain upgraded its blockchain from Proof-of-Authority to Delegated-Proof-of-Stake (DPoS). This means that only users who actively stake their tokens will earn VTHO rewards, ending passive rewards for those who don’t stake. To encourage early participation, a reward pool of 5.48 billion VTHO (about $15 million) was set up.
Why it matters: This change is positive for long-term holders because staking helps secure the network and reduces the overall supply of VTHO, potentially increasing its value. However, holders who don’t stake will no longer receive passive income, which could be a downside in the short term. (VeChain)

2. Binance Ends VTHO Rewards for Flexible Products (January 1, 2026)

What happened: Binance announced it will stop giving VTHO rewards to users holding VET in Flexible Earn products. Users can still earn rewards by moving their tokens to Locked Products, which require locking tokens for a set period. This aligns with VeChain’s new tokenomics after the Hayabusa upgrade.
Why it matters: This move is neutral overall. It may reduce selling pressure from casual holders but could encourage some users to move their tokens to personal wallets to stake directly. (Binance)

3. Wanchain Cross-Chain Bridge Launch (July 10, 2025)

What happened: VeChain partnered with Wanchain to create a bridge that allows VET and VTHO tokens to move across more than 40 different blockchains, including major ones like Bitcoin, Ethereum, and Solana.
Why it matters: This expands VeChain’s ability to work with other blockchain networks, increasing its usefulness in decentralized finance (DeFi) and making it more attractive for businesses dealing with real-world assets. (Bitcoinist)

Conclusion

VeChain is focusing on building strong infrastructure (Hayabusa upgrade), aligning with regulations (MiCA compliance), and improving cross-chain connections (Wanchain bridge). While the price may not react immediately, these steps strengthen VeChain’s position as a practical blockchain solution for businesses. The big question remains: will the new staking rewards and deflationary features help boost adoption and increase token value?

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What is expected in the development of VET?

VeChain is moving forward with several key updates planned for 2026:

1. Intergalactic Phase (2026) – Making VeChain compatible with other blockchains and fully supporting Ethereum-based smart contracts.
2. StarGate 2.0 Upgrades (Q1 2026) – Improving NFT staking and reward systems.
3. Wanchain Cross-Chain Bridge (2026) – Connecting VeChain to over 40 other blockchains.

In-Depth Look

1. Intergalactic Phase (2026)

What’s happening:
This final stage in VeChain’s development plan aims to allow VeChain to work smoothly with other blockchains like Bitcoin, Ethereum, and Solana. It will do this by supporting cross-chain communication and fully supporting Ethereum’s smart contract system (Ethereum Virtual Machine or EVM) (Decrypt).

Why it matters:
This upgrade could make VeChain a central platform for decentralized finance (DeFi) and business applications across multiple blockchains. It may attract more users and developers. However, there’s a risk of delays since many projects are working on similar interoperability features.

2. StarGate 2.0 Upgrades (Q1 2026)

What’s happening:
Following the Hayabusa upgrade in late 2025, StarGate 2.0 will introduce new features like tiered nodes, special NFTs for staking, and a large reward pool of 5.3 billion VTHO tokens. It will also make it easier for users to participate in governance decisions (CoinMarketCap).

Why it matters:
These changes aim to encourage users to hold and stake their tokens longer by linking rewards to active participation, which can reduce token inflation. However, the requirement to hold 25 million VET to become a validator might exclude smaller investors.

3. Wanchain Cross-Chain Bridge (2026)

What’s happening:
VeChain is partnering with Wanchain to build a bridge connecting it to more than 40 blockchains, including Bitcoin and Ethereum. This will allow stablecoins like USDT and USDC to move freely across these networks, increasing liquidity for DeFi applications (Bitcoinist).

Why it matters:
This connection could boost VeChain’s use in real-world applications like payments and tokenized assets. Its success will depend on smooth technical integration and meeting regulatory requirements.

Conclusion

VeChain’s 2026 roadmap focuses on making the platform more connected, sustainable, and efficient. While the planned upgrades like full EVM support and cross-chain bridges are promising, the project’s success will depend on how well it can attract partners and developers to meet these ambitious goals.

What updates are there in the VET code base?

VeChain recently completed its biggest software upgrade since 2018, focusing on making the network more decentralized and improving its token economics to reduce inflation.

1. Hayabusa DPoS Activation (December 2, 2025) – VeChain switched to a Delegated Proof-of-Stake (DPoS) system, allowing VET holders to stake tokens and participate as validators.
2. VTHO Tokenomics Update (December 2, 2025) – Passive generation of VTHO tokens was stopped. Now, only staked VET earns VTHO, and transaction fees are burned to reduce token supply.
3. Cross-Chain Bridge Launch (July 10, 2025) – VeChain partnered with Wanchain to connect VeChainThor with over 40 other blockchains, including Bitcoin and Ethereum.

Deep Dive

1. Hayabusa DPoS Activation (December 2, 2025)

What happened: VeChain replaced its old Proof-of-Authority system with a Weighted Delegated Proof-of-Stake (DPoS) consensus. This means any VET holder can now stake their tokens or delegate them to validators who help secure the network. To become a validator, you need to stake 25 million VET, which opens up participation beyond a fixed group of authority nodes.

Why it matters: This change makes the network more decentralized and secure. It also speeds up transaction processing by having validators work in a first-in, first-out order instead of relying on a fixed set of nodes. For VET holders, staking means earning more VTHO tokens as rewards, encouraging long-term holding and reducing the chance of quick sell-offs.
(Source)

2. VTHO Tokenomics Overhaul (December 2, 2025)

What happened: VeChain stopped giving out VTHO tokens just for holding VET. Now, only VET that is actively staked generates VTHO. Additionally, 100% of the base transaction fees paid in VTHO are burned, which means they are permanently removed from circulation to reduce supply.

The system also adjusts how much VTHO is issued based on how many tokens are staked, aiming to keep transaction fees predictable for businesses using the network. Any unclaimed rewards are automatically burned.

Why it matters: This update helps control inflation of VTHO tokens, which is good for the overall health of the VeChain ecosystem. Businesses benefit from stable transaction costs, while casual holders who don’t stake may see fewer rewards. This encourages more active participation and staking, which supports the network’s growth.
(Source)

3. Cross-Chain Bridge Integration (July 10, 2025)

What happened: VeChain teamed up with Wanchain to create a cross-chain bridge. This technology lets users move VET, VTHO, and B3TR tokens between VeChainThor and more than 40 other blockchains, including major ones like Bitcoin and Ethereum.

The bridge is non-custodial, meaning users keep control of their assets at all times. It uses Secure Multiparty Computation to safely connect VeChain assets with decentralized finance (DeFi) services like lending and liquidity pools on other networks.

Why it matters: This expands VeChain’s reach beyond its own blockchain, making its tokens more useful and accessible. It opens up new opportunities for users and institutions to interact with VeChain assets across different blockchain ecosystems, potentially increasing demand for VET.
(Source)

Conclusion

VeChain’s recent upgrades focus on decentralization (through Hayabusa DPoS), sustainable token economics (with VTHO burning), and interoperability (via the Wanchain bridge). These improvements support VeChain’s goal of serving enterprise clients with a reliable and scalable blockchain.

While these changes might not immediately affect VET’s price, they strengthen the network’s foundation for long-term adoption. Looking ahead, it will be interesting to see how reduced VTHO inflation and increased staking participation influence VET’s value in 2026.