The cryptomarket remains in uncertain territory. That’s because, after a year in the red, new retail investors are slow to enter the market out of fear. This is in spite of the massive technical progress that most projects have made. There is also the fact that the crypto market is showing an elevated correlation to the major stock markets.
This means that with the increased volatility in the stock markets, and the possibility of a major correction, the crypto bear could last a while. But even with all these uncertainties, this could be a good time to accumulate on solid projects that solve real problems in society. One such project is Vechain (VET). To male things clearer, here are 3 reasons why Vechain is a worthy investment in spite of the heavilybearish sentiment in the market.
- The market is very close to the bottom
It doesn’t take much analysis to tell that the market is very close to the bottom, even if there could be some more room for some downside movements. One way to tell this is the increased negative sentiment on most crypto forums. All through the year, most people believed that Bitcoin (BTC) was headed back to $20k, optimism was high. However, lately this has changed and the number of people predicting bitcoin at $2k or even less has increased.
This is an indicator that the market is either in the depression phase or very close to it. Since this phase is usually followed by a slow and uneventful ride back to the top, then it makes current prices ideal for investors going in long-term. For a project like Vechain (VET), which has a significant use case in different industries, that bottom could be even closer. This is a project that has lost close to 90% of its value, which reduces the risk of any major downside drop. That’s because, it can’t possibly be going to zero with its growing usage across industries.
- Vechain’s use value in key industries is growing
As mentioned above, a project with a real-world use case can’t possibly be going to zero. Vechain has a use case that spans across industries. It is emerging as a solution to some of the problems to global trade such as counterfeiting, and enhance supply chain efficiency through cold storage logistics solutions.
Vechain is also working with major automobile companies like BYD on matters to do with climate change. These are not the characteristics of a project that is going to zero. In essence, with its strong use case and heavily depressed prices, Vechain (VET)’s potential for an upside break are way higher than any chances of a catastrophic drop in value. Not that it can’t go down further, but the room for more drops is getting smaller with each subsequent market drop.
- A strong team behind it
The team behind a project is more important than anything else it can promise to the market. Team strength is even more important for projects that require partnerships with key industry leaders in order to take off. The Vechain team led by Sunny is one worth being bullish on.
First, they have created a technically advanced blockchain, and have made tremendous progress in pushing for its usage in the market. Looping in companies like PWC, BYD, among others is not an easy feat. It’s a sign of dedication and technical competence of the Vechain team. This is a reason to be bullish on Vechain in the long-run.