The last week saw Theta tokens leap forward leaving behind five other mostly better-known tokens — Litecoin, Bitcoin Cash, chain link ,Stellar and Dogecoin, to become the 9th most valuable cryptocurrency by market capitalisation, according to Coinmarketcap.
THETA has returned over 51%, as most other cryptocurrencies reported losses of over 15% in the same period. With a market dominance of $11.3 billion, THETA was ranked the market’s ninth-largest altcoin on CoinMarketCap earning the title performer of the week. THETA has also headlined on the list of top-performing altcoins for over two weeks now.
Top Reasons Behind THETA Rally
Theta Token (THETA), the native token for the Theta Network, a blockchain protocol developed to enhance the streaming video content, saw a considerable price gain and also recorded new all-time highs on Tuesday, according to data from Messari. Also, Theta’s P2P streaming was reviewed last week, and that is around the same time the price started bouncing upwards.
Several merchants and institutions have added several altcoins to their portfolios, including those with lesser gains and mid-to-low market capitalizations. However, the fact that THETA is worth more than $10 before any tier 1 exchange announcement or Mainnet 3.0 is important for retail traders, as it indicates where it is in its price rally.
Since the price has crossed $10, THETA may be past the accumulation stage but it may be just rising towards a new ATH. Speculations say that THETA is heading towards the $40 mark and of this is true then it is still in the buying stage. The favorable opinion around THETA can also be noticed by the fact that it’s trade volume was up by 98% over the last 24 hours, with its market cap up by 15% too.
According to Robbie Liu, market analyst at OKEx Insights, the price increase of THETA could be partially attributed to major network upgrades scheduled for April. The protocol also lately confirmed that Sony’s European subsidiary has joined the Theta network as a node runner. Additionally over 55 percent of the total coins have been staked as mainnet 3.0 approaches.
The rising percentage of staked tokens is causing a supply shortage. This partially declining supply, as a result of incentives and staking, is expected to fuel the price rally and push it higher over the next three months, towards the $40 target.