VeChain (VET) has been quietly carving its path in the blockchain space, focusing on organic growth and real-world adoption rather than flashy marketing campaigns. This approach, while perhaps less exciting in the short term, could lead to sustainable success in the long run, according to recent analysis by M_Value, a venture capital and crypto funding management firm.
Solid Growth, Under-the-Radar Rise
VeChain has witnessed impressive growth, surpassing its 2021 peak in terms of active accounts and network usage. This rise is attributed to the increasing adoption of the VeChainThor blockchain by established companies like BMW, Walmart China, Groupe Renault, and LVMH. Additionally, DeFi platforms like APEWorld and VeBetterDAO have harnessed VeChain’s capabilities.
A Different Approach: Organic Growth vs. Hype
M_Value highlights a stark contrast between VeChain and newer blockchain projects. Many of these newcomers rely heavily on venture capital (VC) hype and inflated user data generated by bots. Their ecosystems often boast numerous DeFi applications, primarily focused on short-lived yield farming trends, lacking real-world utility. Despite inflated valuations, these projects often lack the foundation of established businesses using their network.
VeChain, on the other hand, prioritizes organic growth and demonstrably real-world applications. This strategy, while admittedly slower, could offer a more secure and sustainable future.
Challenges and Future Considerations
Despite its achievements, VeChain still has areas for improvement. M_Value points out the need for a more optimized tokenomic model, focusing on the generation and burning of VeChainThor (VTHO), the secondary token used for transactions on the network. Additionally, attracting new decentralized applications (dApps) and businesses to utilize the existing user base is crucial for further growth.
The “Boring” Projects Often Win
M_Value draws a parallel to the investment philosophy of Benjamin Graham, who emphasized the importance of value investing. Just like a savvy investor buys from pessimists and sells to optimists, the long-term winners in the blockchain space may not be the most hyped projects. It’s often the “boring” projects with demonstrable value and real-world use cases that stand the test of time.
VeChain: A Project to Keep an Eye On
While trendy, overvalued projects might grab headlines in the short term, VeChain’s focus on organic growth and building a strong foundation could propel it towards long-term success. Investors looking for blockchain projects with real-world applications and a focus on sustainable growth should keep VeChain on their radar.
