The recent surge in Theta Network’s value is largely driven by derivatives traders, with open interest reaching a record high.

Theta Network (THETA) achieved an eight-month peak of $3.17 late Saturday, as its daily trading volume soared by 440% to $680 million. The cryptocurrency experienced a slight correction earlier today and is currently priced at $2.95 as of this writing. See below.

The token boasts a market capitalization of $2.78 billion, placing it in the 53rd position among top cryptocurrencies.

Theta Network operates as a layer-1 proof-of-stake blockchain, providing essential infrastructure for multimedia and AI applications.

Recent data indicates that the price increase has attracted a significant influx of derivatives traders. According to information from Santiment, open interest surged by 77% within the past day, hitting an all-time high of $84 million.

Theta chart

Conversely, the funding rate calculated across all exchanges has decreased from 0.03% to 0.009% as the asset price began to correct, according to Santiment data.

This trend indicates an increase in traders wagering on a price decline. As a result, the asset is likely to experience heightened volatility, as any significant price movements could trigger further liquidations.

Market intelligence data reveals a considerable rise in positive social sentiment and discussions surrounding the blockchain over the last month, potentially heightening the fear of missing out among investors.

It is important to note that price rallies fueled by FOMO (fear of missing out) can be quite volatile due to the absence of substantial catalysts.

Theta Network was established by Mitch Liu and Jieyi Long in 2017. Liu is a seasoned professional in the video and gaming sectors, having previously founded companies such as Tapjoy and Gameview Studios.

IronSource acquired Tapjoy for $400 million.

Long specializes in blockchain technology, virtual reality, and live-streaming.

Theta has garnered attention from a range of prominent investors and strategic partners across various sectors, including Samsung, Sony, Digital Currency Group, Sierra Ventures, and Heuristic Capital Partners.