The recent surge in Theta Network’s price is largely driven by derivatives traders, with its open interest reaching a record high.
Theta Network (THETA) hit an eight-month peak of $3.17 late on Saturday, while its daily trading volume skyrocketed by 440% to reach $680 million. Following a slight correction earlier today, the asset is currently trading at $2.95.
The token boasts a market cap of $2.78 billion, placing it in the 53rd position among the top cryptocurrencies.
Theta Network operates as a layer-1 proof-of-stake blockchain that facilitates infrastructure for multimedia and artificial intelligence applications.
Recent data indicates that the surge in price has resulted in a notable influx of derivatives traders. Based on information shared by Santiment, open interest rose by 77% within the last 24 hours, reaching an all-time high of $84 million.
Theta chart
Conversely, the funding rate across all exchanges has seen a decline from 0.03% to 0.009% as the asset’s price experienced a correction, according to data from Santiment.
This trend suggests that more traders are speculating on a price decrease. As a result, the asset may face considerable price volatility, as any significant movements could trigger increased liquidations.
Market intelligence data reflects a notable increase in positive social sentiment and conversations surrounding the blockchain over the past 30 days, which may contribute to investors’ fear of missing out.
Historically, price rallies fueled by FOMO (fear of missing out) are often highly volatile due to the absence of substantial catalysts.
Theta Network was established by Mitch Liu and Jieyi Long in 2017. Liu brings extensive experience from the video and gaming sectors and has previously founded companies such as Tapjoy and Gameview Studios.
In fact, IronSource acquired Tapjoy for $400 million.
Long specializes in blockchain technology, virtual reality, and live streaming.
Theta has garnered interest from numerous prominent investors and strategic collaborators from various sectors, including Samsung, Sony, Digital Currency Group, Sierra Ventures, and Heuristic Capital Partners.
Disclosure: This article does not constitute investment advice. The content and information provided on this page are intended for educational purposes only.
