Theta Network has witnessed significant developments recently. Its open interest has hit a new all-time high, reaching $84 million with a 77% increase over the past day, as per Santiment data. This came as the token’s price soared, hitting an eight-month peak of $3.17 late Saturday. The daily trading volume also skyrocketed by 440% to $680 million.
However, Theta Network saw a mild correction earlier today and is currently trading at $2.95. As the price started to correct, the funding rate aggregated from all exchanges declined from 0.03% to 0.009%, indicating that more traders are now betting on a price drop. This situation could lead to high price volatility as any movements might trigger increased liquidations.
Theta Network, a layer-1 proof-of-stake blockchain providing infrastructure for multimedia and artificial intelligence use cases, currently has a market cap of $2.78 billion, ranking 53rd among leading cryptocurrencies.
Moreover, market intelligence data shows positive social sentiment and discussions around the blockchain have surged over the last 30 days, which might trigger the fear of missing out (FOMO) among investors. Price rallies driven by FOMO usually tend to be highly volatile due to the lack of major catalysts.
The network was co-founded in 2017 by Mitch Liu, a veteran of the video and gaming industries who previously founded startups like Tapjoy (later purchased by IronSource for $400 million), and Jieyi Long, a specialist in blockchain, virtual reality, and live-streaming. It has also attracted several high-profile investors and strategic partners from various sectors, including Samsung, Sony, Digital Currency Group, Sierra Ventures, and Heuristic Capital Partners.
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