Institutional Infrastructure Paves ESG Road for VeChain’s VET Aspirations

VeChain has emerged as a focal point in the 2025 ESG blockchain research landscape, primarily due to its Proof-of-Authority consensus model. The platform’s energy-efficient architecture has attracted attention from institutional investors and regulatory bodies, particularly in the European Union, where it has already published compliance documentation under the Markets in Crypto-Assets (MiCA) framework. This regulatory alignment enhances its viability for inclusion in future ESG-focused ETFs and ETPs, positioning it as a candidate for sustainable capital inflows from institutional portfolios [1].

VeChain’s ecosystem has demonstrated robust real-world adoption through supply chain tracking and ESG data monitoring. The platform operates on a dual-token model—VET and VTHO—which ensures fee stability and supports transaction validation. The Hayabusa upgrade, a significant development in the platform's roadmap, is expected to transition the network from Proof of Authority to Delegated Proof of Stake, adding dynamic VTHO issuance to improve economic design and scalability. The vote for this upgrade passed on August 18, 2025, with testnet deployment scheduled for early September and mainnet integration likely by December [1].

Institutional support has further strengthened VeChain’s infrastructure. Franklin Templeton, a firm managing $1.7 trillion in assets, is a client of the platform, while custody services are provided by Crypto.com and BitGo. Liquidity assistance from Keyrock has also contributed to a more structured environment, facilitating the possibility of ETF listings. These elements collectively enhance the platform’s legal feasibility for institutional allocations, a factor that is viewed as a critical component of long-term capital accumulation [1].

VeChain’s native token, VET, currently trades at $0.02585, with a market cap of $2.22 billion. Analysts have projected potential price targets based on historical comparisons to Cardano’s 2021 performance. According to one such assessment, VET could reach $1 if it achieves a market cap of $72 billion—calculated from a circulating supply of 72 billion tokens. On a fully diluted basis, this number climbs to $86.7 billion. These figures remain below Cardano’s peak of $95 billion, suggesting a realistic but ambitious growth trajectory. Favorable macroeconomic conditions, such as interest rate cuts and ETF flows, could further support this valuation [1].

The ecosystem’s expansion is also supported by active user engagement. VeBetterDAO has onboarded over 4 million users and processed over 30 million tokenised transactions, contributing to VTHO token burns and reinforcing tokenomics. These activities indicate a growing network effect, which could enhance utility and demand for VET. Additionally, notable endorsements, such as UFC CEO Dana White’s $1 million personal investment in VET, provide visibility and credibility within a market often criticized for speculative behavior [1].

Looking ahead, VeChain faces both opportunities and risks. A bullish scenario assumes successful integration of the Hayabusa upgrade, favorable macroeconomic trends, and ETF issuance aligned with ESG mandates, potentially leading to a market cap in the $72–95 billion range. A bearish outcome, however, could arise from liquidity constraints or ETF-related disappointments, though the platform’s institutional infrastructure and ESG framework would likely remain intact. The current cycle is distinct from the hype-driven peaks of 2021, with infrastructure and institutional readiness driving value creation.

Source: [1] VeChain Price Prediction: Is $1 Possible for VET? (https://cryptonews.net/news/altcoins/31490316/)