What is up with VeChain (VET) transaction volume wild swings?

When developing your ecosystem, most important link in the chain are the actual builders ergo developers. VeChain Foundation knows that and that is why they set aside a fund for a new developer bounty for the VeChainThor blockchain.

Additionally, it has also launched an application development challenge. The main intention behind it is to boost application development. This will also allow people to know more about VeChainThor’s features. The information was released by the VeChain Foundation on Medium a few days ago.

The total pool of reward is 40 million VET tokens. 

And the first ideas are already flowing in and getting the funds for development:

The concerns about low transaction volume

VeChain transaction volume experienced a notable dip from the January levles to the current state of blockchain:

As you can see from the chart, the drop is significant, especially in terms of clauses. Clauses are novel built-in feature of the VeChainThor blockchain. The Clauses field contains several clauses. Each single clause contains three fields:

  • To — the recipient’s address;
  • Value — the amount transferred to the recipient;
  • Data — this fulfils several functions, including determining whether the transaction is a standard transaction or a smart contract-creating transaction.

The major leap lies in the ability to include several clauses together in one transaction, defined by the Clauses field. Putting it another way, the Clauses field is a set of single clauses. This allows a single transaction to have multiple outputs. The Clauses system yields flexibility and power beyond other blockchains.

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This drop in transaction volume stirred some spirits in the VeChain community.

There is always a clear divide between two cohorts in crypto space: the hype train, get rich quick guys who are impatient and disgruntled with pretty much anything other than big price jumps. On the other side are the patient, long-term holders who find joy in small progress, spread positive vibes in the community and call for fortitude and faith in the team. VeChain is no different in this regard. Some parts of the community have been voicing concerns about low transaction volume on the VeChain blockchain, despite new partners, dapp projects migrating from other blockchains to VET and other potentially transaction boosting events. One Reddit observer put it succinctly:

I am hoping for gradual increase every 3 months and am trying to focus on long term.

However that said, considering there should be 20 projects migrated then this is slightly concerning if it does not pick up. As much as I am trying to be realistic about speed of migration and real life development and believe in the potential, I think we should see higher number based on what was hyped and announced. I mean steady number for a while would be fine by me, but sudden decrease to almost mainnet start is not what I was hoping for.

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And the aforementioned difference in mentality comes to full shine with another user, counter-argumenting with his optimistic view of the transaction dynamic on VET blockchain:

The MyStory launch was the only reason there was so much activity in January. Considering it was the first big-scale test of the system with real products, I’m sure DNV-GL is monitoring the sales data of all the wine that went through the system to make sure the investment is performing as anticipated. If they are satisfied with the results, the txns will continue as they were, perhaps with other wine brands or different products.

The projects are not running idle. There is a massive amount of work being done under-the-hood, lots of which is still under NDA.

This is all complete speculation, but knowing just how slow big enterprises introduce anything new, I wouldn’t be surprised if this is what is happening.

For the next few months, I personally am looking forward to what Safe Haven will bring, their roadmap for the next few months is jam-packed with exciting stuff.

In time, the system will be where we all want it to be. We’re still very, very early so keep scooping up VET.

Parting thoughts

Investing in crypto is a great reflection of your character: are you the impatient, risk-affectionate, gambler-like guy who is probably lazy to do deep research on his investment and just throws money into different projects based on the hype or hear-say from anonymous internet users. Or are you the level-headed optimist, meticulous researcher and stoic investor who stands by his decisions and tries to alleviate the bear market pains for his fellow sufferers.

Whichever group you find yourself fitting into will decide how you look on the recent VeChain activities.

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CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Rene Peters
Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

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