On Monday, VeThor Token (VTHO) surged to its highest level since May 2022, while VeChain (VET) faced a notable decline, recovering some losses later. The reason for VTHO’s price increase was unclear, with no apparent news triggers.
In contrast, VeChain (VET) took a different trajectory, experiencing a decline to $0.0248 before bouncing back to $0.028. Despite this fluctuation, the coin, once among the top twenty cryptocurrencies, has witnessed an impressive increase of over 97% from its lowest point in October.
VeChain and VeThor Surge Amid Market Retreat
VeChain (VET) and its utility token VeThor (VTHO) showcased divergent trends on Monday, bucking the broader altcoin retreat. While VTHO experienced a significant surge, reaching an intraday high of $0.0030, VET took a different path, seeing fluctuations between $0.0248 and $0.028. The unusual movement in VTHO occurred despite the lack of apparent triggers, especially amid a market downturn led by Bitcoin’s flash crash.
The two tokens are integral to the VeChain ecosystem, with VET serving as the primary token and VTHO used for gas payments within the network. Notably, VET boasts a market cap exceeding $2 billion, surpassing VTHO’s valuation of $184 million.
The surge in VTHO came amidst a broader cryptocurrency market pullback triggered by Bitcoin’s flash crash, which saw the leading cryptocurrency’s price plummet from $45,000 to $40,000. This downturn affected various altcoins, including Avalanche, Handy, and RabbitX.
While the surge in VTHO lacked specific catalysts, the recent VeChain news could have contributed to the positive sentiment. VeChain achieved a notable milestone by becoming the first public blockchain to implement transaction fee delegation, allowing users to access decentralized applications (dApps) without directly purchasing crypto. This development coincided with the introduction of VeChain’s dApp kit, aimed at revolutionizing the dApp building industry.
On-chain data further indicates a positive trend for both VET and VTHO, with continuous user additions during the ongoing altcoin bull run. VET boasts over 900,000 token holders, while VTHO has accumulated more than 2.5 million, showcasing growing interest and adoption within the VeChain ecosystem.
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— vechain (@vechainofficial) December 6, 2023
rVTHO’s Monday Rally Raises Questions Amid Low Volume
The notable rally in rVTHO on Monday unfolded within a low-volume trading environment, prompting scrutiny and raising questions about the authenticity of the surge. CoinGecko’s compiled data revealed a 24-hour trading volume slightly exceeding $1.6 million, marking a decline from the over $2.2 million recorded during the same period on Sunday.
The reduced trading volume casts doubt on the sustainability and legitimacy of the VeThor rally, hinting at the possibility that the surge may be attributed to a pump orchestrated by social media-driven traders.
This phenomenon has been observed previously in the crypto space, where such traders have initiated pumps for various tokens, ranging from major ones like Avalanche (AVAX) to smaller players like BENQI, TrustSwap, and Hubble. The historic patterns of these orchestrated pumps among social media traders warrant caution and further investigation into the true driving forces behind rVTHO’s recent price movement.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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