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VeChain (VET) : What It Is, How It Works, and What This Crypto Is Used For in 2025
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VeChain (VET) : What It Is, How It Works, and What This Crypto Is Used For in 2025

VeChain emerges as a top blockchain in the crypto industry, transforming global supply chain management with its VET token and sustainable approach. Explore everything about VeChain in 2025, from its technical operation to investment outlook, in our comprehensive guide.

Written by Kevin

Translated on June 24, 2025 at 09:09 by Maholy

Cryptocurrency Vechain (VET) symbol.
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What is VeChain (VET) ?

VeChain, also known by its ticker VET, represents one of the most concrete and innovative blockchain protocols in today’s crypto ecosystem. This Layer 1 platform distinguishes itself through its pragmatic approach, moving away from purely speculative aspects to focus on real and measurable industrial applications.

VET logo

The VeChainThor blockchain forms the technical core of this ecosystem, offering a robust infrastructure specifically designed to meet the needs of modern businesses. Unlike many crypto projects that struggle to find concrete use cases, VeChain has established itself as a proven solution in the field of traceability and supply chain management.

VeChain’s unique positioning is based on its “Web3 for Better” philosophy, a vision that places sustainable development and positive impact at the center of its concerns. This approach fundamentally differentiates VET from other cryptocurrencies, by offering a blockchain that doesn’t just process transactions but actively contributes to solving complex industrial problems.

The History of VeChain

The story of VeChain begins in 2015, at a time when Bitcoin blockchain was just beginning to be understood by the general public. This year marked the birth of a visionary project that would revolutionize the approach to enterprise blockchain.

HISTORY OF VET

The genesis of VeChain has its roots in its founder’s concrete experience within China’s luxury industry. This proximity to the real challenges of supply chain and anti-counterfeiting allowed for the identification of specific needs that blockchain technology could address in an innovative way.

2018 marks a decisive turning point with the official launch of the VeChainThor blockchain and the migration of the VET token to its own infrastructure. This crucial step allowed VeChain to free itself from Ethereum‘s technical constraints and optimize its performance for industrial applications.

The most recent evolution, begun in 2023, sees VeChain broadening its vision with the new “Web3 for Better” whitepaper, developed in collaboration with the prestigious consulting firm BCG (Boston Consulting Group). This new direction places sustainable development at the heart of the strategy.

Who Created VeChain ?

Sunny Lu embodies the vision and technical expertise that gave birth to VeChain. His unique professional background largely explains why VET has established itself as a blockchain solution particularly suited to contemporary industrial challenges.

creator

Before founding VeChain, Sunny Lu held the strategic position of IT Director at Louis Vuitton in China. This experience within a prestigious luxury house allowed him to intimately understand the complex challenges of the modern supply chain, particularly in a market as dynamic and demanding as China.

The expertise acquired at Louis Vuitton proves particularly relevant in the Chinese context, where counterfeiting issues represent a major economic challenge. This proximity to the real challenges of authentication and traceability of luxury products fueled the thinking that led to the creation of VeChain.

What is VET Crypto Used For ?

The VET token fulfills several essential functions within the VeChain ecosystem, going far beyond the simple role of payment method to become a true economic fuel for the most advanced industrial blockchain on the market.

The main function of VET is to power VeChain’s unique dual-token system. In this innovative architecture, VET serves as a value and governance token, while VTHO (VeChainThor Energy) acts as the fuel needed to execute transactions. This ingenious separation allows for stabilizing operational costs for businesses, independent of speculative fluctuations in the crypto market.

vechain utility

VET holders benefit from a passive VTHO generation mechanism, creating a sustainable and attractive economic model. Each VET token held automatically generates VTHO over time, offering investors a passive yield while supplying the ecosystem with the fuel needed for transactions.

In the supply chain domain, VET facilitates the creation and management of digital identities for physical products. Through integration with technologies like NFC and RFID, each product can be associated with a unique blockchain identity, enabling complete tracking of its lifecycle.

How Does the VeChainThor Network Work ?

The VeChain network relies on a sophisticated blockchain architecture that combines technical innovation and industrial pragmatism. The VeChainThor blockchain forms the technological foundation of this ecosystem, offering optimized performance for enterprise applications.

The Proof of Authority (PoA) consensus algorithm represents the heart of VeChain’s operation. Unlike traditional mechanisms such as Proof of Work or Proof of Stake, PoA prioritizes the identity and reputation of validators rather than computing power or wealth.

Authority Masternodes (AM) constitute the pillars of the VeChain network. These validators, fixed in number and carefully selected, must reveal their real identity and undergo a strict KYC (Know Your Customer) procedure with the VeChain Foundation.

vechainThor

The block generation process follows a regular rhythm of 10 seconds, optimized for industrial needs that require fast confirmations without compromising security. This cadence allows businesses to integrate VeChain into their operational processes.

Finally, the VET/VTHO dual-token system intelligently separates the store of value function from that of transactional fuel. This architecture allows companies to precisely forecast their operational costs, with VTHO serving as a buffer against VET volatility.

Advantages and Disadvantages of VeChain (VET)

Let’s now look at the strengths and areas for improvement of VeChain.

The 5 Major Advantages of VeChain

  1. Exceptional energy efficiency : The Proof of Authority algorithm consumes a fraction of the energy required by blockchains using Proof of Work, positioning VET as an environmentally responsible solution.
  2. Optimal transaction speed : With blocks generated every 10 seconds and near-instant confirmations, VeChain far outperforms Bitcoin or Ethereum for industrial applications.
  3. Very low transaction costs : The VET/VTHO dual-token system stabilizes operational fees, allowing organizations to precisely budget their blockchain costs without surprises.
  4. Solid industrial partnerships : Established collaborations with recognized companies in automotive, luxury, and food industries concretely validate the utility and commercial viability of the platform.
  5. Passive income generation : VET holders automatically generate VTHO, creating an attractive passive income stream for long-term investors.

The 5 Disadvantages and Challenges of VeChain

  1. Relative centralization of consensus : The Proof of Authority model concentrates validation power in the hands of a limited number of Authority Masternodes, raising questions about decentralization.
  2. Dependence on industrial partnerships : VeChain’s success largely relies on its ability to maintain and develop its relationships with client companies, creating a concentration risk.
  3. Growing competition : Platforms like Hyperledger Fabric, R3 Corda, or Ethereum 2.0 offer alternative solutions that intensify competitive pressure.
  4. Limited mainstream adoption : Unlike Bitcoin or Ethereum, VET remains primarily a B2B cryptocurrency, potentially limiting its growth and liquidity in retail markets.
  5. Persistent volatility : Despite the VTHO system, VET remains subject to crypto market fluctuations, slightly complicating budget planning for companies seeking stability.

VET Price and Predictions

The price history of VeChain (VET) reflects the different maturation phases of the project since its inception. Initially launched as VEN in 2017 during its ICO at approximately $0.20 USD, the token experienced a spectacular rise during the bull run of 2017-2018, reaching its all-time high (ATH) of $0.28 USD in January 2018. This euphoric period was followed by the technical migration to the VeChainThor blockchain in June 2018, where VEN became VET with a conversion ratio of 1:100.

VET price chart

After the general correction of the crypto market in 2018-2019, VET has gone through several cycles, generally oscillating between $0.005 USD and $0.25 USD. The token benefited from renewed interest in cryptocurrencies in 2021, reaching a new peak around $0.25 USD before stabilizing. In mid-2025, VET is trading around $0.021 USD, reflecting a more mature valuation based on real industrial adoption rather than pure speculation.

VET Price Predictions for 2025 and 2030

The price predictions for 2025 established by technical analysts converge toward a range of $0.0173 USD to $0.086 USD, with an expected average price around $0.0589 USD.

This projection is based on the continued expansion of industrial partnerships, particularly in the electric automotive and sustainable development sectors. Bullish factors include the growing adoption of blockchain traceability solutions and the integration of VeChain into global supply chains.

For 2030, long-term forecasts suggest growth potential toward the $0.15 USD to $0.30 USD zone, conditioned by massive blockchain adoption by Fortune 500 companies and expansion of the sustainable development market. This optimistic projection is based on the assumption of democratization of blockchain technologies in business and favorable regulation for utility tokens like VET.

We again remind you that these predictions should be taken with a grain of salt and do not in any way replace a complete analysis of the token and the VeChain project.

Important Moments in VeChain’s History

2015 : Sunny Lu founds VeChain with the revolutionary vision of applying blockchain technology to industrial challenges in supply chain and traceability.

2016 : Development of the first prototypes and technical concept validation, with a particular focus on integrating NFC and RFID technologies with the blockchain.

2017 : Launch of the VEN token ICO on Ethereum, raising significant funds and drawing the crypto community’s attention to industrial blockchain applications.

history

2018 : Historic migration to the proprietary VeChainThor blockchain in June, with the conversion of the VEN token to VET and the official launch of the mainnet.

2019 : Signing of the first major industrial partnerships with BMW for automotive traceability and Walmart China for food safety, validating the commercial utility.

2020 : International expansion with new partnerships in the pharmaceutical industry and strengthening of the developer ecosystem with improved tools.

2021 : Introduction of the PoA 2.0-SURFACE consensus in November, significantly improving the energy efficiency and performance of the VeChain network.

2022 : Consolidation of existing partnerships and development of new applications in the luxury sector, with an increased focus on anti-counterfeiting.

2023 : Publication of the “Web3 for Better” whitepaper in collaboration with BCG, repositioning VeChain as the reference blockchain for sustainable development.

2024 : Integration of Dana White (UFC president) as a strategic advisor and expansion into new sectors such as electric batteries and circular economy.

2025 : Confirmation of the ecosystem’s maturity with growing enterprise adoption and solid positioning in the sustainable industrial blockchain market.

How and Where to Buy VeChain (VET) ?

Acquiring VET tokens is an essential step for those who wish to invest in the project, participate in its governance, or use the applications in its ecosystem. Due to its growing market capitalization and popularity, the VET token is available on the majority of centralized exchange platforms (CEX).

These platforms allow you to buy VET directly with euros or dollars via different payment methods (bank card, wire transfer). Here’s our ranking of the best platforms in 2025 :

1
logo bitget
logo bitget
plus
600+ cryptocurrencies
plus
Low trading fees : 0.02% to 0.06%
plus
Futures trading with leverage, copy trading…
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KYC required
2
pionex classement
pionex classement
plus
Over 350 trading pairs available
plus
Futures with leverage up to 125×
plus
No KYC required
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Built-in automated Grid Trading for free
3
zoomex
zoomex
plus
Over 500 cryptocurrencies
plus
Low trading fees: 0.02% to 0.06%
plus
Futures trading with leverage
plus
Up to $14,000 in bonuses
plus
Optional KYC : required for more options
4
bybit classement
bybit classement
plus
600+ cryptocurrencies available
plus
Competitive fees and advanced trading tools
plus
Futures trading
5
binance
binance
plus
Global Market Leader
plus
Extensive Selection of Cryptocurrencies and Features
cross
Strict Regulatory Restrictions in Some Countries

It’s important to distinguish between specialized exchange platforms (like those mentioned above) where you actually buy and hold cryptocurrencies, and brokers who sometimes offer derivative products like CFDs (Contracts For Difference) on cryptocurrencies. For direct ownership and total control of your assets, it’s preferable to use a specialized exchange platform.

How to Buy VET on Bitget ? Mini Tutorial

Here’s how to buy VeChain in 5 steps on the best platform in our ranking.

  1. Create an account on Bitget :
  • Go to the official website
  • Click on “Sign up”
  • Fill out the form with your email and password
bitget registration
  1. Complete KYC verification :
  • Prepare a valid ID document
  • Follow the verification instructions
KYC verification
  1. Deposit funds :
  • Fund your account on the platform. Via bank transfer, credit card, or other cryptocurrencies for example.
Deposit
  1. Buy VeChain :
  • Navigate to “Spot Trading”
  • Search for the VET/USDT or VET/EUR pair
  • Place a buy order specifying the amount of VET you want to acquire or the amount you want to spend.
  • You can generally choose between a market order (buy at current price) or a limit order (buy at a specific price you set).
  1. Secure your VET :
  • After purchase, it is strongly recommended to transfer your VET tokens from the exchange platform to a secure personal wallet (see next section) to have full control.

Choose a platform that meets your needs in terms of fees, security, ease of use, and regulatory compliance in your jurisdiction.

How to Store Your VET ?

Once you have acquired VET tokens, the question of their secure storage becomes paramount. Leaving your cryptocurrencies on an exchange platform (CEX) involves significant risks: you don’t directly control your private keys, and your funds could be lost in case of platform hacking, regulatory issues, or company bankruptcy.

This is why it is strongly recommended to transfer your VET to a personal wallet where you alone hold the private keys. “Not your keys, not your coins” is a fundamental adage in the ecosystem.

vechain storage

There are mainly two types of wallets for storing your VET :

  1. Cold Wallets (Hardware Wallets) : These are hardware devices that store your private keys offline, thus offering the highest level of security against online hacks. They often resemble secure USB keys. Recognized brands like Ledger (for example, Ledger Nano S Plus or Ledger Nano X) are the safest solutions for storing significant amounts or for long-term storage.
  2. Hot Wallets (Software Wallets ) : These are software (mobile or desktop applications, browser extensions) that store your private keys on a device connected to the Internet. They are more convenient for frequent use and for interacting with decentralized applications (dApps), but are inherently more vulnerable to malware and phishing than cold wallets. Popular wallets like MetaMask or Trust Wallet can be configured to manage VET tokens.

The choice between a cold wallet and a hot wallet depends on your specific needs: prefer a cold wallet (like Ledger) for maximum security of your main investments, and possibly use a hot wallet (like MetaMask or Trust Wallet) for smaller amounts intended for regular interactions with the DeFi ecosystem. The essential thing is to always carefully secure your recovery phrase (seed phrase) and never share it or store it digitally.

How to Get VeChain (VET) for Free ?

Airdrop programs constitute the most direct method to obtain free VET. VeChain periodically organizes token distributions to reward the community or promote new features. These events are generally announced on official channels and require simple actions such as following social accounts or participating in surveys. The amounts distributed vary according to the scale of the event and the level of participation required.

airdrop

VTHO generation represents a source of passive income for VET holders. Each VET token automatically generates VTHO over time, creating a continuous income stream without any particular action. Although VTHO is not directly VET, it can be exchanged for other cryptocurrencies on platforms supporting this pair. This mechanism encourages long-term holding and offers attractive passive remuneration.

Bug bounty programs and community contests offer additional opportunities to acquire free VET. VeChain rewards developers who identify vulnerabilities in the ecosystem, although these programs require advanced technical expertise. Community events, hackathons, and creative challenges organized by VeChain and its partners regularly offer prizes in VET for the most deserving participants.

The legality of VeChain (VET) varies by jurisdiction, but the cryptocurrency generally enjoys a favorable status in most developed countries, thanks to its utility nature and concrete industrial applications.

In the European Union, VET is considered a legal digital asset under the MiCA (Markets in Crypto-Assets) regulatory framework. This regulation explicitly recognizes utility tokens like VET.

In the United States, the SEC has not classified VET as a security, considering it rather as a utility token. This favorable classification allows American platforms to list VET without major regulatory constraints.

Who Holds the Most VET ?

The VeChain Foundation maintains a significant portion of the circulating VET, estimated between 15% and 20% of the total supply. These tokens are primarily intended for ecosystem development.

vechain allocation

The Authority Masternodes collectively hold a significant share of VET, with each node requiring a minimum stake of 25 million VET.

Finally, institutional investors represent a growing category of VET holders. Funds specializing in enterprise cryptocurrencies have gradually accumulated significant positions. Not to mention behemoths like Binance, Bybit, Bitget, and other cryptocurrency exchanges.

Our Review on VeChain (VET) in 2025

VeChain (VET) positions itself as one of the most promising cryptocurrencies for investors seeking exposure to industrial blockchain applications. Our analysis reveals a mature project, with solid fundamentals and significant growth potential in the medium term.

The evolution toward sustainable development positions VeChain in a high-growth market where global companies are actively seeking solutions to track and certify their environmental efforts. This strategic orientation precisely addresses contemporary challenges and offers a sustainable competitive advantage.

Our investment recommendation for VET is positive with reservations, particularly suited to investors favoring solid fundamentals with a 3 to 5 year horizon. The medium-term price targets around $0.05-0.08 USD seem achievable, conditioned by the continued expansion of industrial partnerships. This perspective offers attractive return potential while limiting risks compared to much more volatile cryptocurrencies.

Kevin

Kevin

Avec une formation en ingénierie mécanique et en gestion de projets, j'ai travaillé dans l'industrie automobile et nucléaire pendant 10 ans. Reconverti dans la rédaction web il y a quelques années, j'utilise mes connaissances techniques pour écrire des articles sur des sujets spécifiques liés aux finances, aux cryptomonnaies, à la blockchain et aux Fintech.

FAQ – Frequently Asked Questions about VeChain (VET)

What sets VeChain apart from other blockchains ?

VeChain stands out with its focus on practical industrial applications, its energy-efficient Proof of Authority algorithm, and its dual-token system (VET/VTHO) that stabilizes operational costs for businesses.

How does VeChain generate passive income ?

VET holders automatically generate VTHO (VeChainThor Energy) over time. This VTHO can be used to pay transaction fees or exchanged for other cryptocurrencies, creating a steady stream of passive income.

Is VeChain a good long-term investment ?

VET offers strong fundamentals with established industrial partnerships and real-world use cases. Its focus on sustainability and supply chain management makes it a potentially attractive investment over the next 3 to 5 years.

Where can VeChain be used in real life ?

VeChain is used for luxury product traceability, automotive supply chain management, food certification, and increasingly for sustainability initiatives and the circular economy.

What is the price potential of VET in 2025 ?

Analysts predict a price range from $0.0173 to $0.086 for 2025, with an expected average price around $0.0589. These forecasts depend on ongoing industrial adoption and strategic partnerships.

DISCLAIMER

This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.

InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.

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Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.

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