Theta Network Sees Significant Price Surge Amid Increased Derivatives Trading

Key Drivers Behind the Rally

Theta Network’s price has reached an eight-month high of $3.17, with its daily trading volume skyrocketing 440% to $680 million. The asset has since witnessed a mild correction and is trading at $2.95. This price surge is largely attributed to a huge wave of derivatives traders, with open interest increasing by 77% over the past day to reach an all-time high of $84 million.

The Theta Network is a layer-1 proof-of-stake blockchain that provides infrastructure for multimedia and artificial intelligence use cases. Its market capitalization currently stands at $2.78 billion, securing the 53rd spot among leading cryptocurrencies.

Derivatives Market Sentiment

According to data from Santiment, the funding rate aggregated from all exchanges declined from 0.03% to 0.009% as the asset’s price started to face correction. This indicates that the number of traders betting on the price drop has increased, potentially leading to high price volatility and increased liquidations in the event of any significant price movements.

Social Sentiment and FOMO

Market intelligence platform data shows that social sentiment and discussions around the blockchain have significantly increased over the last 30 days. This could raise the fear of missing out among investors, potentially contributing to the price surge.

Price rallies that emerge on the back of FOMO tend to be highly volatile due to the lack of major catalysts.

About Theta Network

Theta Network was co-founded by Mitch Liu and Jieyi Long in 2017. Liu is a veteran in the video and gaming industries, who previously founded startups like Tapjoy and Gameview Studios. Long is a specialist in blockchain, virtual reality, and live-streaming. Theta has attracted several high-profile investors and strategic partners from various industries, including Samsung, Sony, Digital Currency Group, Sierra Ventures, and Heuristic Capital Partners.

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