COVID-defying currency: The rise and rise of theta fuel - The Cryptocurrency that’s rallied over 1,000% since March
|May has proven to be a month of mixed fortunes for the world of cryptocurrencies. Bitcoin’s widely anticipated halving event came and passed, while some smaller altcoins have begun to gather some meaningful momentum across the market.
Undoubtedly the biggest performer for May has to go to THETA’s collection of tokens. Having gained as much as 1,000% in value since the Black Thursday global market crash on Thursday 12th March, THETA has proven to defy the gloomy predictions of a coming recession entirely. It’s flagship coin, THETA Fuel (TFUEL) managed to surge by as much as 1,150% in the space of one week alone.
Today, TFUEL stands as the 83rd most valuable cryptocurrency worldwide. But can this coin’s meteoric rise sustain itself amidst the difficult economic downturns that are being forecast in the wake of the Coronavirus crisis? Let’s take a deeper look at the asset that’s defied the market:
Understanding THETA Fuel
THETA Fuel is a cryptocurrency that runs on its own type of decentralised blockchain. It’s the operational token of the THETA protocol and can be used to complete transactions in a way that offers similar security to the use of smart contracts.
Although it’s only recently experienced its rise in value, THETA Fuel is readily available on a number of cryptocurrency exchanges - however it may be that investors will already need to possess Ethereum or Bitcoin in order to complete a trade using the currency.
One of the most significant reasons behind THETA Fuel’s surge is likely down to the THETA blockchain project’s recent completion of the THETA Mainnet 2.0 platform upgrade. In a statement, the organisation explained that the upgrade had improved the quality of the network significantly.
“Community-run Guardian Nodes will now take a direct role in block production, finalizing blocks at regular 100 block intervals, and making up the second layer of defence after the Validator Nodes that produce each block. With Guardian Nodes joining the network and staking, no single group or entity will control the majority of THETA staked, marking a significant milestone toward Theta’s decentralization,” a THETA company statement read.
Could THETA Provide Financial Relief?
Of course, the cryptocurrency landscape is a highly speculative one. Collective investor fears over missing out along with hype may have played a significant role in the altcoin rallies of recent times.
Such widespread FOMO has had an effect on the markets in recent weeks with the anticipation of Bitcoin’s halving event - with countless traders eager to buy into the digital behemoth at $10,000 while cowering at the prospect of taking a gamble when a coin retraces.
Such hype could be evidenced by THETA’s 80% crash in March, during the height of the economic uncertainty. THETA’s recovery since those trying days in early 2020 has paved the way for a sustained upward continuation.
By May, THETA’s acceleration was continuing to gather momentum. On Monday 25th May, Binance announced that its exchange will support the token’s Mainnet upgrade.
So, is now the time to buy THETA Fuel? Or will the fledgeling cryptocurrency plateau at Binance’s major announcement?
The crypto landscape is significantly speculative and surges often open tokens up for periods of volatility. There’s little doubting that a degree of hype is clouding the perception of investors when it comes to assessing the value of THETA Fuel. However, THETA’s Mainnet 2.0 upgrade represents a tangible foundation for progress. At a time where countless assets are displaying wild levels of volatility, THETA’s leading the recovery rally following the crashes caused by COVID-19.
Could Other Altcoins Enjoy a Renaissance?
The decreased level of volatility of major players in the crypto market like Bitcoin suggests that, despite its recent halving event, the digital behemoth won’t be mounting a rally of its own soon.
This realisation may turn the attention of more investors towards more esoteric assets, like altcoins. With the sea of altcoins ever-expanding, the upgrades and updates that they experience occur on a regular basis and have the ability to draw in more interest when the likes of Bitcoin and Ethereum are lying dormant.
Bitcoin’s more static position in cryptocurrency exchanges, and the petering out of the initial halving hype may have inadvertently provided the perfect opportunity for THETA Fuel to take off on its 1,000% rise over recent weeks.
While demand at such an adverse time can be hard to anticipate, the conditions are ideal for altcoins to flourish and experience sustainable growth. While it can’t be guaranteed that THETA will maintain its astonishing growth rates, it seems a safe bet that other altcoins experience some impressive gains along the way.
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