Theta Network hits 8-month high, open interest jumps by 77%

Theta Network’s latest rally came on the back of derivatives traders’ support as open interest hit an all-time high.

Theta Network (THETA) hit an eight-month high of $3.17 late Saturday, sending daily trading volume up 440% to $680 million. The asset experienced a slight correction earlier today and is trading at $2.95 at the time of writing. See below.

Source: CoinGecko

The token currently has a market cap of $2.78 billion, securing the 53rd place among leading cryptocurrencies.

Theta Network is a layer 1 proof-of-stake blockchain that provides infrastructure for multimedia and AI use cases.

Data shows that the price increase brought a huge wave of derivatives investors. According to data provided by Santiment, open positions increased by 77% in the past day, reaching an ATH of $84 million.

Theta chart THETA social activity, open interest and funding rate | Source: Santiment

On the other hand, according to data from Santiment, the funding rate collected from all exchanges decreased from 0.03% to 0.009% as the price of the asset faced a correction.

The indicator shows that the number of traders betting on a price decline is increasing. As a result, high price volatility can be expected for the asset as any movement could potentially trigger increased liquidations.

Data from the market intelligence platform shows positive social sentiment and shows that discussions around blockchain have increased significantly over the past 30 days. This may increase the fear of missing out among investors.

Most importantly, price increases that occur following FOMO (fear of missing out) tend to be highly volatile due to the lack of major catalysts.

Theta Network was co-founded by Mitch Liu and Jieyi Long in 2017. Liu is an experienced name in the video and game industries, having previously founded startup companies such as Tapjoy and Gameview Studios.

IronSource acquired Tapjoy for $400 million.

Long is an expert in blockchain, virtual reality and live streaming.

Theta has attracted the interest of several high-profile investors and strategic partners from a variety of industries, including Samsung, Sony, Digital Currency Group, Sierra Ventures and Heuristic Capital Partners.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.