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THETA token is down 4% in the past 24 hours to trade at $0.985 at the time of writing. With a market cap of just under $1 billion, THETA has fallen out of the top 50 cryptocurrencies list as it is now down 19.5% in the past week — one of the biggest losers of the week.
Much like the rest of the crypto market, the THETA token soared more than 85% in value up until the last week of February, when it fell over 25%.
While still up 33.5% YTD, the coin is down almost 94% from its all-time high (ATH) of $15.72 in mid-April 2021, according to CoinGecko.
But why is the THETA token going down? The thing is, it's not only THETA that is in red. Rather the broad crypto market has been experiencing a drawdown since last week. This can also be seen in Bitcoin price, as it is trading under $22,500 and Ether at $1,565. This has sent the total crypto market cap at just the $1 trillion mark yet again.
These losses come after the cryptocurrency market started to see a recovery following a disastrous 2022, with most coins registering double- and triple-digit gains since the start of this year.
However, the market has been impacted by the decline of Silvergate, a crypto-focused bank, which has suffered a mass withdrawal of funds, net losses, layoffs, and a US Department of Justice probe. The bank's delay in submitting its annual 10-K report has raised concerns among investors, causing a massive sell-off and leading several of its clients, including Coinbase, to sever ties with the bank.
The fallout has caused FUD (fear, uncertainty, & doubt) among crypto investors and traders, with most cryptocurrencies in the red and the global crypto market cap dropping over 4.5%.
Social analysis by market intelligence platform Santiment has identified an ongoing high negative crypto sentiment, mainly fueled by Twitter users' fear and uncertainty, with #cryptocrash a prime off-and-on trending hashtag. Santiment's in-house crypto market analyst advised focusing on funding rates and noted the high level of indecision among traders in shorting or longing the markets.
Revolutionize the Video Streaming Industry
THETA token is the native cryptocurrency of the Theta Network, and it has multiple use cases on the Theta blockchain, including serving as the means of payment for transaction fees on the Theta network.
The token is also used to encourage users to stream video content on the platform by offering incentives in THETA coins, providing engagement rewards to viewers, and allowing users to reward their favorite content creators in these coins. THETA tokens are also used to enable viewers to contribute their devices as “Catching nodes” to deliver video streams to other users across the globe.
As a governance token, it also facilitates participation in the governance of the Theta platform through voting mechanisms for THETA token holders. Users can further stake their THETA coins to help secure the platform and receive rewards in return.
Besides the THETA token, the network has another native cryptocurrency called Theta Fuel (TFUEL), which is used as a payment method for various services on the platform, including transaction fees and content delivery.
TFUEL is a $310 million market cryptocurrency trading at $0.05, down 92.5% from its ATH in June 2021.
As for the Theta Network, it is a blockchain-based content delivery platform that aims to revolutionize the video streaming industry. Founded in 2017 by Mitch Liu and Jieyi Long, the Theta Network was originally built on top of the Ethereum blockchain but has since gone to construct a native blockchain. It utilizes a proof-of-stake (PoS) consensus mechanism to validate transactions and secure the network.
The main goal of Theta Network is to reduce the reliance on centralized streaming platforms, which are often plagued by issues such as high costs, low quality, and limited access. And by leveraging the power of blockchain technology, Theta Network allows users to share their bandwidth and computing resources to help deliver high-quality video streams in a decentralized manner.
Theta Network has several innovative features, including Theta Edge Network, which is a network of nodes that help distribute video content in a decentralized manner. Theta.tv is a streaming platform that allows users to watch and stream video content. It also features social features like chat and the ability to earn TFUEL by participating in the community.
Theta Network has gained significant traction since its launch, is listed on major cryptocurrency exchanges, and has a strong community of supporters and developers working to improve the platform.
Catering to Fast-Growing Video Streaming Market
According to reports, the global video streaming market is projected to grow at a compound annual growth rate of 18.4% by 2030. This suggests that Theta Network, which provides innovative solutions for video streaming through blockchain technology, can also benefit from this growth. Furthermore, Theta is currently in a unique position in the market, as it is one of the few blockchain platforms providing such use cases for video streaming.
In addition to this, Theta Network has established partnerships with several video technology, media and technology, blockchain, and institutional investors. These partners include WPT, Cinedigm, GFuel, Failarmy, Shout Factory, Con TV, The Pet Collective, Samsung, Sony, Google, CAA, Binance, Blockchain.com, Replay, DHVC, GFRFund, Heuristic Capital, and Sierra Ventures. These partnerships help Theta Network expand its reach and adoption in the video streaming industry.
When it comes to Theta Video Infrastructure, it has several features, including a Web3 Video API to lower the cost of encoding, to store, and delivering video content. The platform also features a Global Edge Network, which allows users to share their bandwidth, storage, and computing resources to earn rewards.
Theta Video Infrastructure further includes a Metachain that provides a customizable and highly scalable blockchain for Web3 businesses. Meanwhile, enterprise validators are global leaders that join the network to help secure and govern the Theta network.
The platform also features NFTs with DRM (digital rights management), which allow users to monetize their content and intellectual property while ensuring it remains secure and protected. With these features, Theta Video Infrastructure aims to provide a comprehensive solution for video content creators and businesses looking to optimize their video infrastructure and monetization strategies.
While the network has potential, we are currently in a bear market during which the prices of cryptocurrencies typically experience a prolonged period of decline. However, it's important to note that these bear markets can also present opportunities for long-term projects to focus on building and development.
In bear markets, projects that have solid fundamentals and long-term goals can still succeed, as they can use the time to focus on improving their technology and building a solid foundation for future growth. This can involve investing in research and development, expanding their team, and building partnerships with other projects and companies.
Furthermore, bear markets can also weed out projects that lack substance or long-term potential, as they may struggle to survive during a prolonged period of low prices and decreasing demand.
So, while the price of the THETA token may remain under pressure after experiencing a downturn over the past 3-year, the Theta network team is focusing on building.
At the beginning of this year, Theta EdgeStore was released in an Alpha version, which is a critical part of the 2023 Theta roadmap. A new component of the Theta Edge Node software, it is run by thousands of users across the globe. It serves as an append-only, content-addressing, decentralized key/value storage network for the permanent web.
Theta Edge Nodes already support decentralized streaming and encoding/transcoding, but with the addition of decentralized storage, Edge Nodes will now provide a complete end-to-end decentralized service for video streaming and other types of file transfer or streaming.
Many decentralized applications can be built on top of Theta EdgeStore, including permanent storage for NFT digital assets, storage for training data sets for AI algorithms, data availability services for layer 2 scaling solutions, dCDN for video, music, game patches, software updates, storage backend for general web3 DApps such as blogging sites, chat apps, decentralized app stores, decentralized Github repositories, storage for Metaverse digital assets, and much more.
Just last month, Theta Labs announced a new partnership with FedML, an AI platform, to enable collaborative machine learning on content recommendation and generative AI. The partnership aims to utilize Theta's Edge Network to train large-scale generative AI models collaboratively. Theta TV community members will be able to contribute their personal preferences and computing resources in training and deploying AI models to enhance personalized recommendations and advertisements through FedML.
AI is all the rage right now, with ChatGPT, an AI language model, gaining traction, which can be attributed to its ability to generate human-like responses to natural language queries and its potential to automate tasks previously handled by humans.
According to FedML CEO Salman Avestimehr, Theta's Edge Network is a perfect fit for distributed computing, which is necessary for collaborative machine learning and other AI use cases. Avestimehr said the partnership brings together two visions to enable collaborative AI within the Web3 space. He further noted that ad recommendation and generative AI are just two immediate applications that require private data contributions from people to train machine learning models that benefit everyone.
Meanwhile, Mitch Liu, co-founder and CEO of Theta Labs, said that the partnership unlocks a new use case for Theta's edge nodes and is expected to result in exciting developments in AI and enhance personalized recommendations and advertisements provided to Theta TV users.
Gaurav started trading cryptocurrencies in 2017 and has fallen in love with the crypto space ever since. His interest in everything crypto turned him into a writer specializing in cryptocurrencies and blockchain. Soon he found himself working with crypto companies and media outlets. He is also a big-time Batman fan.