VeChain price testing critical support as Deloitte claims the platform is more secure than Ethereum

VeChain price testing critical support as Deloitte claims the platform is more secure than Ethereum
  • VeChain is placed ahead of Ethereum in scalability and security by Deloitte
  • VeChain price is struggling to close at higher levels despite numerous attempts to move higher
  • The sellers are now testing a critical short-term support with the zone below $0.0080 next target for the bear

VeChain (VET) price is trading around 3% lower this week as sellers are testing critical support near $0.0083. Separately, Deloitte believes that Vechain is better than Ethereum in the context of security and scalability. 

Fundamental analysis: The blockchain decade starts – Deloitte 

Deloitte, one of the world’s largest audit and consulting companies,  issued a report titled “5 Blockchain Trends for 2020,” in which it offers the analysis of the blockchain industry in 2019. In addition, Deloitte claims that 2020 could prove to be the beginning of the blockchain decade. 

The report notes that the blockchain platform VeChain is better than Ethereum in terms of  scalability and security, but less decentralized. The company mentions the so-called “blockchain trilemma”, referring to three main characteristics of every platform – security, scalability and decentralization. Regarding these three features, VeChain is more balanced than Ethereum, states Deloitte. 

The company states that “these three characteristics are thus a major consideration for any blockchain network provider, as well as for their customers who choose to build their solutions on the network.”

“What has often been coined as ‘the blockchain trilemma’, refers to the trade-off in any network between scalability, decentralization and security. Any two will succeed at the expense of the third.” 

Deloitte anticipates that by the end of this year, leading blockchains like VeChain will remain at the top due to a wide array of services it offers. As a result, VeChain users and institutions can utilize the platform to develop new solutions. 

Accordingly, here are 4 top platforms that will keep leading the way in this sector: Corda, Hyperledger, Ethereum and VeChain.

The audit firm conducted a survey where the results showed that blockchain companies and investors will mostly focus on data validation, data access, as well as sharing and identity protection in 2020. 

This is one of the reasons Deloitte favours VeChain as it offers high security and scalability.  Ethereum, on the other hand, will become the platform for building a new token economy,  while VeChain could reap the benefits from that, stated Deloitte.

Technical analysis: VeChain price slips lower

Vechain price is struggling to stay above $0.0090 as the sellers keep rejecting attempts to move the price action higher. As seen in the chart below, there is a series of wicks that extend to the upside which means that the price action traded higher briefly before the sellers were able to force a close lower. 

VeChain (VET/USD) daily chart (TradingView)

The sellers are now attempting to break the $0.0083 horizontal support, which should pave the way for a deeper pullback. In this case, the $0.0077 and $0.0079 becomes the next target, but also a chance for traders looking to invest in VeChain. On the upside, the $0.0090 is now resistance after its role as support ended last week.

Summary

Vechain price is trading around 3% lower as buyers struggle to have the price action close higher. Still, the VeChain protocol is praised by a major audit firm Deloitte as one of the most secure and scalable blockchain projects. 

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.
Invezz uses cookies to provide you with a great user experience. By using Invezz, you accept our privacy policy.