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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead
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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead

VeChain Heads For Consensus Update, Can VET Price Lessen Bearish Pressure?

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 20, 2022 10:00 pm
2 mins read
VeChain VET VETUSDT

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VeChain follows the general sentiment in the market and has experienced some relief across low timeframes. The crypto market trended below the critical support zone during the weekend but saw it bounce during today’s trading session.

Related Reading | Over $250 Million In Liquidations As Bitcoin Recovers Above $20,000

Buyers have been able to push back bears in the short term but could still face further losses. At the time of writing, VET’s price trades at $0.02 with a 2% profit in the last 24 hours and an 11% loss in the last 7 days.

VeChain VET VETUSDT
VET’s price trends to the downside on the 4-hour chart. Source: VETUSDT Tradingview

Despite the downside price action for larger cryptocurrencies, VeChain has managed to preserve its value over the past week. This cryptocurrency is on track to deploy a major update to its network which could be providing additional support.

The VeChain Foundation announced that the upgrade, dubbed Proof-of-Authority (PoA) 2.0, was successfully deployed on a testnet. The Foundation claims this milestone marks important progress towards a mainnet launch.

The update is set to remove the tradeoffs from the Nakamoto Consensus and Byzantine Fault Tolerance (BFT) consensus. The Foundation claims that this upgrade could use a new wave of “mass adoption” as the blockchain VeChainThor will provide its users with data finality and more scalability.

Designed to provide companies with a secure blockchain, use-case adaptive, and support corporate use cases. The VeChain community approved this consensus back in 2021, and once it’s deployed, will make this network one of the only blockchains running on a hybrid consensus.

The Foundation claims that PoA 2.0 will introduce a “finality gadget”, an add-on mechanism that will validate blocks twice. First with the Nakamoto consensus and then with the “finality gadget” to make transactions “impossible to revert”.

VeChain Foundation’s Chief Scientist Peter Zhou said the following on this update and its bullish case for the blockchain VeChainThor:

It’s a huge milestone for PoA2. With the finality gadget, VeChainThor blockchain is going to provide the state-of-the-art security while maintaining its high standard of performance.

VeChain Sitting On The Danger Zone

As VET’s price traded downside, analyst Justin Bennett claimed a revisit of the levels at $0.01 seemed “likely”. Bennett has been bearish on the crypto market and expects the total crypto market to continue its decline.

Related Reading | Bitcoin Long-Term Holder Loss-Taking Now Highest Since 2019

This could spell more pain for VET’s price, at least in the short term, but provide long-term holders with a buying opportunity as the network prepares to implement PoA 2.0. Bennett said:

This bounce looks weak so far. Most likely another bull trap before the next round of selling.  I still think we see $TOTAL reach the $670-$730B area before a relief rally. That’s 17-25% below current levels.

I've removed these bids as we'll likely see $VET visit 0.016 at a minimum. https://t.co/URERjQf0rS

— Justin Bennett (@JustinBennettFX) June 18, 2022

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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