Theta Network sees a surge in trading volume and derivatives activity.
Theta Network’s Market Momentum
Theta Network (THETA) achieved an eight-month high of $3.17 over the weekend as its daily trading volume soared by 440%, reaching $680 million. The token’s price has since corrected slightly and is currently trading at $2.95. Its market cap stands at $2.78 billion, ranking 53rd among leading cryptocurrencies.
Open Interest Surges Amid Price Rally
The recent rally has drawn attention from derivatives traders. Data from Santiment shows THETA’s open interest surged 77% in 24 hours, reaching a record $84 million. This indicates heightened activity in derivatives markets, reflecting investor confidence.
Volatility Looms Amid Social Buzz
Social sentiment around THETA has spiked over the past 30 days, fueled by increased discussions on its blockchain applications in multimedia and AI. However, the funding rate has declined from 0.03% to 0.009%, suggesting a rise in short positions. Analysts warn that the rally driven by fear of missing out (FOMO) could result in high price volatility and potential liquidations.
Background and Partnerships
Founded in 2017 by Mitch Liu and Jieyi Long, Theta Network is a layer-1 proof-of-stake blockchain specializing in multimedia and AI use cases. Its backers include industry giants like Samsung, Sony, and Digital Currency Group. Co-founder Liu is a video and gaming industry veteran, previously involved with Tapjoy, which was acquired by IronSource for $400 million.
Looking Ahead for THETA
With significant investor interest and strategic partnerships, Theta Network remains a key player in blockchain innovation. However, investors should remain cautious of volatility driven by speculative trading.
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