DailySun
The recent surge in Theta Network is fueled by rising activity among derivatives traders, as its open interest reaches an all-time high.
Theta Network (THETA) attained an eight-month peak of $3.17 late Saturday, with daily trading volume soaring by 440% to $680 million. Earlier today, the token experienced a slight correction and is currently valued at $2.95. See below.
The token’s market capitalization has reached $2.78 billion, placing it in the 53rd position among major cryptocurrencies.
Theta Network operates as a layer-1 proof-of-stake blockchain that supports infrastructure for multimedia and artificial intelligence applications.
Recent data indicates that the token’s price increase has attracted a substantial influx of derivatives traders. According to information from Santiment, open interest surged by 77% over the last day, achieving an all-time high of $84 million.
Theta chart
Conversely, the funding rate aggregated across exchanges declined from 0.03% to 0.009% as the asset’s price began to correct, according to Santiment data.
This indicator suggests a rise in the number of traders speculating on a price decline, which could lead to increased price volatility as movements may trigger further liquidations.
Market intelligence data shows a significant uptick in positive social sentiment and discussions surrounding the blockchain over the last 30 days, potentially heightening the fear of missing out among investors.
It’s important to note that price increases driven by FOMO (fear of missing out) can be highly volatile, often lacking significant catalysts.
Theta Network was co-founded by Mitch Liu and Jieyi Long in 2017. Liu has a background in the video and gaming industries, previously founding companies like Tapjoy and Gameview Studios.
IronSource acquired Tapjoy for $400 million.
Long specializes in blockchain, virtual reality, and live streaming.
Theta has garnered attention from numerous high-profile investors and strategic partners across various sectors, including Samsung, Sony, Digital Currency Group, Sierra Ventures, and Heuristic Capital Partners.
Disclosure: This article is not intended as investment advice. The content and materials presented on this page serve educational purposes only.
