In the recently volatile cryptocurrency markets, the major players like Bitcoin and Etherium have taken a beating along with smaller altcoins.
Even so, VeChain has been trading in the green during the last day as the crypto market shows signs of a potential recovery. The cryptocurrency could be benefiting from positive developments around its most recent partnerships.
At the time of writing VET records a 7% profit in the last 24-hours outperforming larger cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH) which record a 3.3% and 4.9% profit, respectively, over the same period.
In an official post, the VeChain Foundation revealed its involvement at establishing the “Shanghai Association Standards For Blockchain Service” certification. Created to “expedite” the growth of blockchain based products and services, this certificate became effective in early February 2022.
The Foundation partnered with the Shanghai Municipal Administration of Market Supervision and the Shanghai Certification Association to propose the standard. In that sense, VeChain “provided key technical input” based on the project experience, the post claimed.
The project Chief Scientist Dr. Peter Zhou in collaboration with other senior blockchain experts also provided guidance to facilitate the creation of this standard. The post added:
The most important objective of the standard is to provide a robust and proven assessment structure of present blockchain-enabled enterprise services.
The certification has outlined the requirements for entities attempting to provide blockchain as a service products and application including their technical, regulatory, and management obligations. In addition, it provides the necessary evaluation tools and “approaches” to certificate potential companies looking to build their own blockchain based application or use case.
The VeChain Foundation claim the standard is “widely applicable”, while adding the following:
It also contains universal guidance for technology providers looking to offer blockchain-based business services, while providing a valuable reference standard for enterprises looking to define premium, credible blockchain-based digital services.
Why VeChain (VET) Might Continue Recording Profits
This standard and its certification initiative has the ultimate objective of driving VeChain into the mainstream. As the Foundation said, the project has been involved in several initiatives with a similar goal and has attempted to showcase its “technical capabilities and ability to develop standardized, scalable designs”.
In addition to the above, VeChain has been implementing improvements to its mainnet to become the hub for corporate use case of blockchain technology. The Foundation efforts have been seemingly translated into the growth of its ecosystem.
As NewsBTC reported, the network saw the launch of a new decentralized exchange (DEX) called ZumoSwap and hinted at the launch of a new stablecoin.
VeChain’s recent bullish price action could become the new normal for the coming months, according to a pseudonym analyst. As seen below, in the monthly chart for the VET/ETH trading pair, VeChain has entered a critical support area which has historically been follow by bullish price action, the analyst said:
We have been underperforming $ETH for 10 months. In 2019, 2020 & 2021, after green zone retest, each time it only took 3 months to break the old ATH. Assuming we have a retest this month or next, $VET ATH is in May/June 2022.
