VeThor (VTHO), an ecosystem token on the VeChain blockchain, has seen a massive surge in the last 24 hours, gaining as much as 60%.
VTHO rocketed from $0.00169 to $0.003 in a moment, displaying a gigantic green candlestick. At the time of writing, VTHO was up 55.45% in the last 24 hours to $0.00275. The gains are significant, as the entire crypto market traded in losses, with more tokens recording significant declines.
VTHO's 24-hour trading volume has soared 2,800%, with $64.7 million worth traded, per CoinMarketCap data.
The exact reason for the price spike remains unknown, although several reasons are plausible.
VeThor Token is one of the two tokens employed by the VeChainThor public blockchain. While VeChain Token (VET) is the native token for the platform, VeThor Token (VTHO) plays an essential role in the overall functionality of the blockchain.
The VeThor Token is a VIP-180 Standard token that denotes the cost of using the VeChainThor blockchain. Its major function is to facilitate operations and transactions on the blockchain, and it effectively represents the network's smart contract layer.
Bearing this in mind, it could be said that one of the main drivers of VeThor Token's growth might be increased adoption and demand for the VeChainThor blockchain.
The demand for VTHO grows as more firms and organizations use the platform for their business purposes, as it is essential to pay network fees and execute smart contracts.
Per a tweet shared by the official VeChain X handle, VeChain may be the first public blockchain to implement a transaction fee delegation mechanism. This allows ordinary individuals to use dApps without purchasing crypto or directly paying the transaction fee incurred during their interactions with dApps.
VeChain's recent launch of its game-changing dApp Kit remains a watershed moment for the blockchain.
The tool kit boasts an array of capabilities, including simpler wallet management, upgraded UI components, React integration and support for numerous languages and frameworks.