VeChain (VET) is approaching one of its most critical milestones in years, as the project’s team has announced a major update launching on July 1. This would introduce the Galactica mainnet merge, 100% base fee burns of VeThor (VTHO), and the long-awaited rollout of StarGate, a new staking platform powered by NFTs.

All these changes signal a fundamental evolution in how the VeChain blockchain network operates. With supply pressures easing and utility increasing, the VET coin appears primed for a technical breakout.

What’s Changing on July 1: StarGate, Fee Burns, and Governance

VeChain’s dual-token system consists of VET, the native token, and VeThor Token (VTHO), a VIP-180 standard asset used to pay for transactions and execute smart contracts on the VeChainThor blockchain.

Under the upcoming update, the Galactica upgrade will introduce 100% base fee burns, meaning all base VTHO fees used in transactions will be permanently destroyed. This reduces VTHO’s circulating supply while preserving the utility function of the token, which powers blockchain operations.

Simultaneously, StarGate is being launched as a new staking platform. But instead of the typical token-locking model, VeChain is introducing NFT-collateralized staking, which allows users to delegate VET while retaining token liquidity.

They aim to enhance usability, provide more control, and offer a new path to earning passive income through VTHO rewards.

VeChain Price Technical Analysis

Crypto analyst Alpha Crypto Signal shared a bullish chart setup showing a double bottom formation on the daily chart. The VeChain crypto recently bounced from strong support near $0.019 and is now pushing toward its neckline resistance at $0.0255.

“If $VET gets acceptance above that neckline, it opens up serious upside,” the analyst noted.

The chart illustrates a potential path toward $0.035 to $0.05 from its current $0.02040 price level in the next leg of the rally, assuming momentum is sustained.

Meanwhile, the Bollinger Bands on Central Charts indicate tight price compression, a classic signal of imminent volatility. With the price currently hovering around $0.0204, any volume-driven breakout could see VET move sharply.

With VeChain’s July 1 upgrade approaching, VET could quickly break above $0.0255 and rally toward $0.03–$0.035, in line with the double-bottom breakout pattern.

However, failure to clear resistance may send it back to the $0.018–$0.020 support range. A more neutral path would see consolidation between $0.021 and $0.025 as the market waits for adoption signals.

VET Has Low DeFi Activity, But Narrative Is Strong

Despite the bullish outlook, VeChain’s on-chain metrics are relatively weak. Data from DeFiLlama shows that the total value locked (TVL) on VeChain is just $1.35 million, with only $1,915 in DEX trading volume over the past 24 hours. That’s extremely low compared to its $1.762 billion market cap.

This mismatch suggests VET’s current valuation relies more on speculative sentiment than DeFi engagement.

However, if StarGate succeeds in incentivizing more staking, voting, and governance participation, that narrative could shift.

Similarly, with the new auto-renewal staking feature, users can earn uninterrupted VTHO rewards while influencing the ecosystem’s governance with their stake.