VeChain closed Q2 2025 with its treasury falling to $167 million, down 23.5% in just one month.
Meanwhile, VET’s price has dropped 92% from its all-time high, highlighting the significant pressure the project is facing. However, the tokenomics improvements are expected to help VeChain regain growth momentum.
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Financial Overview and Market Volatility
Recently, the VeChain Foundation released its Q2 2025 financial report. A deeper look into the Foundation reveals a stark contrast between the first two quarters of 2025, partly reflecting its investment strategy and the highly volatile market backdrop.
The report showed VeChain’s treasury, including stablecoins and holdings of BTC, ETH, and VET, at $218.5 million at the end of Q1 2025. This marked a sharp decline compared to the end of Q4 2024, primarily due to unfavorable market conditions, with VET down 48.16%, ETH down 46.19%, and BTC down 11.13%.
Moving into Q2, the report indicated a further 23.5% decrease compared to Q1. By the end of Q2, the treasury had shrunk to $167.2 million. Notably, while the market showed signs of recovery during this quarter, with BTC and ETH rising 31.64% and 38.43% respectively, VET’s price dropped by another 4.05%.
“The volatility is reflective of both our strategic investment in Renaissance protocol upgrades and ecosystem expansion initiatives, combined with broader cryptocurrency market conditions experienced during the quarter,” the report emphasized.
During the quarter, VeChain adjusted its tokenomics. VTHO tokens are now generated exclusively through staking and ecosystem activities, designed to reduce inflationary pressure and encourage greater community participation.
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Additionally, the project continued expanding VeWorld‘s Web3 super app to enable smoother onboarding for new users into Web3 and NFT services, strengthening the Foundation for growth.
VET Price Has Dropped 92% from ATH
Although VET’s price has declined for two consecutive quarters in 2025, this is not the worst-case scenario. Data from BeInCrypto shows that VET is currently trading at $0.0233. At this level, the token is down 92% from its all-time high.
Many analysts view Q2 as a transitional period, in which the ecosystem faces revenue pressure but simultaneously lays the groundwork for key upgrades. These changes are designed to regulate supply flows within the dual-token system “to make it fair and, potentially, deflationary.”
The focus is particularly on VTHO’s issuance and consumption mechanics, aiming to build a more sustainable model for VET.
On the weekly timeframe, VET shows signs of a positive trend, with potential for a breakout if liquidity support continues. The token has a solid foundation to initiate a new growth cycle.
If the crucial support level is maintained, a breakout from the current sideways trend appears feasible in the coming months.
“Now, the reason why I think that price is going to surge and break out from this construction is also due to the fact that the tokenomics are adjusting…I think that this is still one to break out of the trend and have a positive return,” crypto analyst Michael concluded.
