Why Is Theta So Cheap?

Last Updated February 7th 2022
6 Min Read

Why is Theta so cheap? Well, it’s actually not that cheap, but it is trading lower than most coins. Theta token is trading at $3.47, and we all know this is a bit low given the massive progress the team has made in such a short period of time.

One thing you need to understand is that Theta's technology is still a fairly new concept. Many people are still not sure about its prospects.

Theta is not just another cryptocurrency project, it’s an industry-disrupting technology that could potentially change how we consume entertainment forever.

So this might explain why the team behind Theta has been trying to focus more on development rather than marketing and hype to drive the price up.

Remember that just because the price is low doesn't mean that the coin has no value or proper use cases.

In fact, most cryptocurrency projects that have real-world applications tend to suffer low prices. This is because investors prefer fast-growing coins that feed on hype and speculations, such as Dogecoin and Bitcoin.

To help you understand why Theta has such a low price and a seemingly drudgy growth, we will have to circle back and understand what exactly it is and what it is trying to achieve.

What Is Theta (THETA)?

Theta is a new peer-to-peer internet protocol that aims to improve video streaming.

The idea behind this project is to create decentralized video stream sharing on the blockchain. Think of it as Airbnb for streaming videos, where users will be able to share their bandwidth and resources with others in exchange for money or tokens.

The idea of decentralized P2P video streaming is not original. However, what Theta has done differently than other blockchain projects that are trying to revolutionize the internet is that it has already created a working product.

To understand why this is important, let's look at traditional video streaming services like Netflix.

The more people join and use Netflix, the poorer the streaming quality becomes. However, with Theta, the more people join and share their bandwidth, the better the video quality will become. It's a win-win for everyone involved.

Generally, Theta has three categories of users:

  • Enterprise Validator Nodes
  • Guardian Nodes
  • Edge Nodes

Enterprise Validator Nodes are mostly companies that stake Theta tokens in order to be able to process transactions on the network. Current validator nodes include Samsung, Google, Sony and Binance.

Guardian Nodes, on the other hand, ensure that the transactions blocks by validator nodes are accurate. Most people in this group are developers and miners.

The last group is the Edge Nodes, which now share bandwidth and relay video streams in order to be rewarded with TFUEL. A majority of the users on the Theta network belong to this group.

Read Also: How To Make Or Lose Money With Theta?

Theta Price History

As I said earlier, the Theta project is fairly new.

The first step of its plan was to create a functioning Dapp that would address video streaming issues. However, they didn't have a blockchain yet, so they created the Theta Network on Ethereum.

The Theta token was trading at almost $1 when it was first released on exchanges back in 2018.

However, with the bear market taking its toll on many coins around the same time, the price of THETA dropped immensely to around $0.20 by February 2018.

Despite the drop, this was still a huge price increase from the initial $0.015 price back in 2017. 

When Theta was launched in 2017, the team held a private token sale where they sold 30% of the 1 billion token supply and were able to raise about $20 million.

However, for the most part of 2018 and 2019, Theta remained relatively low and even dropped to lower than $0.06 towards the end of 2019. The price began rising steadily in 2020 and hit $1 for the first time in mid-December of the same year. 

From here, the price exploded, and by the end of March 2021, Theta was trading above $13 per coin. Around mid-April, the coin attained its current all-time high price of $15.90. 

This was probably due to the market-wide bull run that took off at the start of 2021. However, as most coins slumped at the end of the bull market, and later suffered the bearish market that started in December, Theta managed to retain almost 30% of its peak value and, at press time, was trading at $3.47 with a $3.4 billion market cap. 

Check Out: Is Theta Safe?

So, Why Is Theta So Cheap?

There are several reasons why Theta's price is still low despite its promising technology.

  • Potential investors are waiting for more information on the Theta project
  • Some investors do not know about the project yet
  • The coin is not yet being traded in popular exchanges
  • Lack of enough marketing and awareness surrounding this project
  • Competition from bigger coins
  • The coin is still fairly new

While all of these points hold some weight, the last two play a major role in keeping Theta's price down. As you know, the coin is still fairly new, and, as such, this is keeping some potential investors on the sidelines.

This will change once we hear more about Theta's product releases and partnerships.

However, one of the main reasons why THETA remains so cheap is because it isn't yet being traded in big exchanges like Coinbase or eToro.

Once Theta is listed on one of these popular exchanges, we can expect to see a major increase in its price.

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Is Theta A Good Investment Despite Its Low Price?

Theta coin has already shown us huge growth potential. Once listed on popular exchanges like Coinbase or eToro, we can expect this trend to continue.

However, many investors are waiting for more information about the project before making their decision to invest. One of the ways that the Theta team could remedy this is by spreading awareness and releasing more information about their roadmap.

Otherwise, considering how promising Theta's concept is and the fact that it is backed by major players in the tech industry, we believe it is a good investment.

And although THETA has been trading for just over two years, we can expect to see an increase in growth within the next couple of years. Here's why:

  • Relativity: Video streaming is a huge industry, and it will only continue to grow as the world becomes more connected
  • New exchanges: With new exchange listings, we can expect to see an increase in daily volume and higher trade prices.
  • Partnership: Theta has partnered with several players in the entertainment industry, which will help it get more exposure and probably boost its value. 
  • Availability: Theta coin is available on many exchanges, including Huobi, Binance, Upbit and Bittrex.

Don't Miss: Is Theta A Good Buy?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Conclusion: Will The Price Of Theta Go Up?

Yes, it is likely the price of Theta will go up. However, investors will need to wait for more information before investing; until then, it remains a good idea to keep an eye on the coin.

We believe that as the video streaming industry continues to become a bigger part of everyday life, the demand for a decentralized video streaming platform will increase. This is why we think Theta has a strong chance of becoming one of the main players in this space.

We expect that as their product release approaches, Theta's price will skyrocket, and it will become a profitable investment asset.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.