The price of the Theta cryptocurrency – THETA – has fallen to its lowest level since late July, as a sell-off has accelerated across the crypto markets in recent days.The token has fallen by around 50% from the $8.49 level in early November.
Does the THETA crypto have a future? Is there further scope for the price to fall, or can it stage a rebound?
In this article, we recap the project’s latest developments and review the outlook for the coin’s price in the future.
Theta delivers low-cost, decentralised video streaming
Launched in spring 2019, Theta is an open-source blockchain designed to provide decentralised video delivery.
The peer-to-peer network efficiently provides high-quality video streams at low cost to developers, who don’t need to build expensive infrastructure.
Content creators can construct specialised decentralised applications ( dApps ) on the blockchain , while viewers benefit by receiving rewards for sharing their bandwidth.
The Theta protocol runs a dual-token structure, in which the THETA token is used for governance and to stake as a validator or guardian node.
Theta supply is fixed at one billion.THETA FUEL (TFUEL) is the protocol’s operational token, which is used for on-chain operations such as payments to Edge Node relayers, for video-stream sharing or smart contracts.
TFUEL is the gas of the network.There were 5 billion TFUEL tokens when the blockchain launched and supply increases every year at a fixed rate set by the protocol, according to Theta’s white paper .
Theta was founded by Mitch Liu, co-founder of video advertising firm Tapjoy and mobile gaming startup Gameview Studios, and Jieyi Long, who holds multiple patents for virtual reality (VR) live streaming and video game instant replays.
Liu and Long also co-founded THETA.tv, a live-streaming platform that built the first dApp on the Theta protocol.
Investors in Theta include the Sony Innovation Fund, Samsung NEXT, early-stage venture capital fund Sierra Ventures and leading talent agency Creative Artists Agency (CAA).Steve Chen, co-founder of YouTube, and Justin Kan, co-founder of live video platform Twitch, are among the project’s advisors.
Theta is shifting its focus from protocol development building out its ecosystem and accelerating adoption of the blockchain for video and data delivery.Theta is targeting the global entertainment and media market, which is forecast to expand at a compound annual growth rate ( CAGR ) of 10.4% to $6.7trn by 2030, according to the Industry Research Co.
According to the white paper:
The Theta network will need to expand into decentralised storage to support its fully integrated vision, the white paper states.
To support its expansion strategy, Theta plans to launch a new native TNT-20 token, TDROP, built on the Theta blockchain to reward NFT liquidity mining, provide decentralised governance via staking, and reward Theta validators, guardians and Elite Edge node operators.
TDROP will have a fixed supply of 20 billion tokens, with the launch scheduled for 1 February 2022.The tokens will be allocated as follows:
30% – Earned by NFT liquidity mining on the ThetaDrop platform over a four-year period;
20% – Staking rewards for decentralised governance over a four-year period;
20% – Rewards for THETA validators and guardians, including delegated stakers over an 18-month vesting period, 1/6th per quarter;
20% – Theta Labs development team over an 18-month vesting period, 1/6th per quarter;
10% – Reserved for Theta marketing, advisors and partners (not vested).
A hard fork of the Theta blockchain, version 3.2.0, went live on 4 December.Upgrades include Ethereum virtual machine (EVM) to prepare for enabling smart-contract support for THETA tokens as well as functionality and efficiency improvements.
On 24 November, cross-blockchain bridge Meter Passport added support for Theta blockchain, allowing users to move tokens between the Theta blockchain and other chains for the first time.
The bridge can be used to move TFUEL or any TNT-20 tokens on the Theta blockchain to the Ethereum, Binance Smart Chain (BSC), Avalanche or Meter blockchains.
Support for THETA transfer will be added later for technical reasons.Users can now move TFUEL or TDROP to Ethereum and create a liquidity pool on Uniswap, or integrate the tokens into a popular decentralised finance ( DeFi ) protocol.
The announcement said:
The mainnnet launch comes after testing started in October.
The THETA token price dropped to $4.17 on 6 December, as the price retreated from a high of $7.57 on 25 November.At the time of writing, on 7 December, it traded at $4.84.
The token had been trading as high as $8.56 in late October.Cryptocurrency markets have sold-off in recent weeks, led by a sharp drop in the value of bitcoin.
THETA has fallen to its lowest level since markets bottomed out in July from the spring cryptocurrency crash, after the token spiked to an all-time high of $15.90 on 16 April.
What do forecast sites predict for the future of the THETA token price?
THETA coin price prediction: is it a buy on weakness in anticipation of a rebound?
Short-term sentiment for the token was bearish at the time of writing, CoinCodex data showed.
There were 22 technical analysis indicators giving bearish signals, compared with eight bullish signals.But the website predicted that the THETA price could rise to $5.09 by 12 December.
The THETA crypto price prediction from algorithm-based forecasting site WalletInvestor was bearish for the short term, projecting that the price could trade down to average $3.28 by the end of 2021.But it expected the token to trend higher during 2022, averaging $12.04 by the end of the year.The site predicted that THETA could climb to $30.57 by the end of 2025.
DigitalCoin ’s THETA token price prediction was less bullish, estimating that the token could average $8.54 in 2022.
Based on historical data, it expected the price to rise to an average of $13.99 by 2025 and $21.43 by 2028, trading up to $24.15 during that time.
Similar to DigitalCoin, the THETA/USD forecast from PricePrediction estimated that the token could average $7.11 in 2022, but it expected the price to climb to an average of $22.68 in 2025, and soar to $149.74 by 2030.
It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates.As such, analysts and algorithm-based forecasters can and do get their predictions wrong.
We recommend that you always do your own research, and consider the latest THETA cryptocurrency news, market trends, technical and fundamental analysis, and expert opinion before making any investment decision.And never invest more than you can afford to lose.
FAQs
Whether THETA is a suitable fit for your investment portfolio depends on your personal financial circumstances and goals.Cryptocurrencies are highly volatile investments, making them riskier to invest in than other asset classes.You should do your own research and evaluate the level of risk you are prepared to accept before investing.
At the time of writing, forecasting sites predicted that the THETA price could go up in the future, although they have different estimates for the levels the price could reach in the coming years.
It’s important to keep in mind that the high volatility in cryptocurrency prices makes it difficult to predict future prices accurately.Forecasters can and do get their predictions wrong.You should do your own research to make informed trading decisions.Keep in mind that past performance is no guarantee of future returns.
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