Verasity Destroys 10 Billion Tokens in Historic Burn Event -Will VRA Price React? 

Verasity (VRA) price rose 40% to hit $0.0060 on Monday after a historic token burn event that destroyed 50% of its total circulation supply. On-chain analysis examines how VRA price could react in the short to mid-term.

Verasity pulled significant media attention when it announced a community-driven decision to burn 10 billion units of its native VRA token. Can the resulting 40% price bounce evolve into a sustained bull rally?

What is Verasity, and Why is the VRA Price Rallying?

Verasity is an AI-powered blockchain protocol that offers cutting-edge advertising services and open-access payment systems. On October 2, the team announced that it had burned 50% of its maximum supply following a public community consultation. This development has since driven the VRA token price to a 5-month peak of $0.0060.

Verasity Network Growth Rapidly Raced to a 6-month Peak

Verastiy witnessed a noticeable spike in new users following the token burn announcement. Indicatively, on-chain data from Santiment shows that 466 new VRA wallets were created on October 2.

Notably, the chart below depicts that the last time the Verasity ecosystem witnessed this Network Growth level was in March 2023.

Verasity (VRA) Network Growth vs Price | Source: Santiment

Network Growth evaluates a blockchain protocol’s adoption rate by aggregating the daily number of fresh wallets created. As expected, this uptick in Verasity user acquisition and network demand has propelled VRA price to a rapid 40% bounce.

However, it remains to be seen if many of these new joiners will stick around to adopt the product and services built on the Verasity network.

More Bullish Traders are Still Looking to Ape in

Furthermore, aggregate data from the order Books of 6 recognized exchanges depicts that bullish traders are still pilling or more purchase orders for VRA.

As depicted below, the bull has placed active orders to purchase 507,000 units of VRA tokens. This is considerably higher than the 385,120 VRA being auctioned at the current prices.

Verasity (VRA) Aggregate Exchange On-chain Market Depth | Source: IntoTheBlock

The Exchange On-chain Market Depth chart depicts the current volume of active VRA spot orders placed across recognized cryptocurrency exchanges.

As seen above, the market bids for Verasity have now outpaced supply by more than 122.5 million VRA This suggests that more bullish retail market participants are still looking to ape in on the VRA price rally.

However, if the network growth spike does not translate into a steady increase in daily transactions, the VRA price could retrace once the current media euphoria wanes.

VRA Price Prediction: Possible Reversal Toward $0.003 After Brief Consolidation

The data points above analyzed indicate that the Verasity price will likely retrace toward 0.30 after the current outlier market demand spikes subside.

The Global In/Out of Money Around Price (GIOM) data, which depicts the entry price distribution of current VRA holders, also validates this bearish prediction.

It shows that if the Verasity price fails to defend the initial support level at $0.0054, the bears could potentially force a reversal toward $0.003.

As shown below, the 603 addresses bought 1.29 billion VRA tokens at the maximum price of $0.0054. If they HODL, they could mount a significant support wall.

But if the network demand dwindles as predicted, the price could eventually drop toward the $0.0028 mark.

Verasity (VRA) Price Prediction GIOM data | Source: IntoTheBlock

Yet, the bears could wrestle control if the Verasity price zooms past $0.01. However, as shown below, 689 addresses had bought 197.7 million VRA tokens at the minimum price of $0.0065.

If those holders look to book early profits, the VRA price could promptly retrace.

But if the VRA bears lose that vital resistance level, the price could rally toward $0.01.

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