As most of the cryptocurrency market remains virtually flat today, the Theta Network (THETA) token is down 7.9%. This brings the Theta rate to $1.21 (THETA/USD) and could spell disaster for this crypto. Yet, some analysts still predict that Theta will prove to be a good long-term investment.
A brief overview of Theta
THETA is the proprietary coin of the Theta network, which is a video streaming blockchain platform. The goal of this service is to offer a faster and more efficient way to stream video, integrating with established streaming platforms to improve how they work. It had some early success and performed very well for much of 2021, but 2022 has been a rough year for Theta.
We have seen this coin gradually drop more and more over the past few months to reach a point where it is trailing near $1. It rarely dives below this point, but that danger is always there. Recently, Theta has seen impressive ups and downs, often moving with much more volatility than Bitcoin and some of the major cryptos. However, it does not retain its earnings, which makes it difficult to call it a good investment.
Theta’s trading volume is down 26% today, but is still trading at over $50 million in a 24-hour period.
Theta rate jumped over the past few days and then fell several times, creating a volatile environment for investors. It appears to be the norm for Theta at the moment, meaning its long-term numbers could go either way.
Should investors keep Theta?
This crypto has proven to be a bad investment this year so far, and there are no signs that it will change course anytime soon. The recent movement in Theta price suggests that investors are most opposed to it dropping below $1, but even hardcore Theta supporters may not be enough to prevent a disaster caused by a poor economy.
We expect the economy to recover at some point, and then Theta could prove to be a decent long-term investment. We see some resilience in this crypto right now, but it’s hard to say if that will continue. It made incredible gains last year and proved to be a wise investment at the time, and a change in economic fortunes could set Theta back in that direction.