THETA price outperforms bitcoin – Here’s what’s behind the price explosion
Theta (THETA) is an open source project that specialises in decentralised streaming. In the last 30 days, THETA has gained almost 200 per cent – what is behind the enormous price increase?
THETA is a protocol that allows users to watch and share digital content. Similar to the streaming platform Twitch, users can stream eSports, music, conferences and much more. The serious difference between THETA and the established Bitcoin Trader platforms is that the project uses blockchain technology for this purpose.
Over the past 30 days, the THETA price has risen from US$0.73 to its current level of US$2.02.
THETA exchange rate
The token thus recorded a price increase of 176.71 percent in December alone, even eclipsing Bitcoin (BTC). What were the reasons for the price increase?
THETA 3.0 plans drive up the price
The team behind the ambitious blockchain project has announced two major upgrades for the token ecosystem. The first is the introduction of so-called Elite Edge Nodes, which will tokenise internet bandwidth. Users will receive rewards for staking Theta Fuel (Tfuel).
While THETA is the governance token of the blockchain, Tfuel acts as a gas token. This is used to pay transaction fees within the protocol. In addition, part of the revenue generated by the protocol will be used to burn Tfuel tokens. Some investors are therefore speculating that demand for Tfuel will continue to rise.
Another reason for the price increase is likely to have been the protocol update of 11 December, which has already been completed. Since then, it has been possible to use smart contracts on the Theta Mainnet.