Theta’s price rose 180% in just two weeks, as several highly anticipated announcements drove the rebound.
Theta Network is a protocol that allows users to view digital content, such as eSports, using blockchain. The protocol’s native THETA token increased by 180% from USD 0.867 to USD 1.92 in two weeks between 20 December and 2 January, and even surpassed Bitcoin (BTC), which continues to climb to new highs.
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Daily candlestick chart for the THETA/USDT (Binance) pair. Source: TradingView.com
Theta Mainnet 3.0 roadmap was the main catalyst
Generally, native tokens of blockchain protocols tend to increase in value after high-profile announcements.
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Theta announced plans to launch Theta Mainnet 3.0 in the spring of 2021. The protocol update allows the network to capture live video and enable live streaming, in addition to viewing other videos on the platform.
The development team behind Theta Mainnet 3.0 explained that the “EdgeCast” technology would allow for live streaming without a central server. The team explained:
“This new fully decentralised technology stack adds the ability to capture live video, transcode it in real time, cache and transmit live video data to users around the world, all via the Theta peer-to-peer network managed by thousands of community members. No central server or service is used in this channel.
Two main components in this version of the mainnet are the introduction of Elite Edge Nodes and TFuel.
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In short, Elite Edge Nodes tokenize Internet bandwidth. By betting Theta Fuel (Tfuel), which is another native token of the Theta block chain, users can win more Tfuel. This process is called uptime mining.
Tfuel was an airdrop to existing Theta Token holders in 2019, when it was launched. Theta Token is the governance token of the block chain, and Theta fuel is the gas token that is used to pay the transaction fees in the protocol.
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Tfuel’s flaring mechanism could further reduce Tfuel’s supply, as it burns Tfuel’s supply with the revenues extracted from the protocol tariffs.
The combination of Elite Edge Nodes and the burning of Tfuel makes Tfuel more compelling, which naturally fuels the sentiment around Theta Token.
Other announcements were also key
On December 19, Theta revealed the Theta Wallet Chrome extension on the Google Chrome website. This essentially allows users to use the wallet as Metamask, interacting with the Theta platform.
Theta network enhancements make way for smart contract capabilities
Before that, on December 11, Theta completed a protocol update, launching smart contracts on the main network. The team said at the time:
“The protocol update is a success! The new features including smart contracts and minimum 1,000 THETA shares are now implemented in the network, and Theta Wallet and Explorer have been updated”.
Due to the consecutive launch of highly anticipated announcements, Theta has been one of the best performing cryptomonkets together with Polkadot (DOT). Santiment analysts noted:
“The end of 2020 and the beginning of 2021 have been exceptional for the #encrypted space, as the most profitable investment asset of the last decade, #Bitcoin, is on the verge of USD 30,000. In addition to its 20% week, $DOT, $THETA, $DOGE and $STX performed even better”.