The Theta Network is a protocol that enables users to watch digital content, like esports, using the blockchain. The protocol’s native token THETA rose by 180% from $0.867 to $1.92 within two weeks between Dec. 20 and Jan. 2 to outperform even Bitcoin (BTC), which continues to soar to new price discovery highs.
Theta Mainnet 3.0 roadmap was the main catalyst
Typically, the native tokens of blockchain protocols tend to surge in value following high-profile announcements.
Theta released its plans to introduce Theta Mainnet 3.0 in the spring of 2021. The protocol upgrade 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 live streaming without a central server. The team explained:
“This new fully decentralized technology stack adds the ability to capture live video, transcode it in real-time, cache and relay live stream video data to users globally — all through Theta’s P2P edge network run by thousands of community members. Not a central server or service is used in this pipeline.”
Two major components in this mainnet release are the introduction of Elite Edge Nodes and TFuel burning.
Simply put, Elite Edge Nodes tokenize internet bandwidth. By staking Theta Fuel (Tfuel), which is another native token of the Theta blockchain, users can earn more Tfuel. This process is called uptime mining.
Tfuel was essentially airdropped to existing Theta Token holders in 2019, when it launched. Theta Token is the governance token of the blockchain, and Theta fuel is the gas token that is used to pay transaction fees on the protocol.
The Tfuel burning mechanism could further reduce the supply of Tfuel as it burns the supply of Tfuel with the revenues taken from fees on the protocol.
The combination of Elite Edge Nodes and Tfuel burning make Tfuel more compelling, which naturally buoys the sentiment around Theta Token.
Other announcements were also key
On Dec. 19, Theta revealed the Theta Wallet Chrome extension on the Google Chrome website. This essentially allows users to use the wallet like Metamask, interacting with the Theta platform.
Prior to that, on Dec. 11, Theta completed a key protocol upgrade, releasing smart contracts on the mainnet. The team said at the time:
“The protocol upgrade is a success! New features including smart contracts and stake min to 1,000 THETA are now implemented onchain, & the Theta Wallet and Explorer have been updated.”
Due to the consecutive release of highly-anticipated announcements, Theta has been one of the best-performing cryptocurrencies alongside Polkadot (DOT). Analysts at Santiment noted:
“The end of 2020 and beginning of 2021 have been outstanding for #crypto, as the most profitable investment asset in the last decade, #Bitcoin, is on the brink of $30,000. In addition to its 20% week, $DOT, $THETA, $DOGE, and $STX performed even better.”