The Theta Project has made waves along with many other altcoins that are taking this year’s bullish wave to new highs.
While the Theta network’s main token has received the most attention, the protocol’s “gas” token, TFUEL, has risen quietly alongside THETA as its importance to the network for savvy crypto investors becomes apparent.
Data from Cointelegraph Markets and TradingView show that the price of TFUEL has risen 775% over the past five weeks, rising from $ 0.026 on February 1st to a new all-time high of $ 0.22 on March 10th when the network went through a hard fork at 12 p.m. PST.
The basics show that TFU is more than just a gas sign
The dual token model won in 2017 with the advent of Neo (NEO) and Gas (GAS) as an alternative to the single token model, which continues to increase with high transaction costs such as the prices of Ethereum (ETH) and Bitcoin (BTC).
Developed when the Theta mainnet launched in 2019, Theta Fuel is designed as an operational token of the protocol that supports on-chain operations such as sending payments and providing smart contracts.
A key difference between Theta and other dual token models is that holders who participate THETA in Validator and Guardian nodes help secure the network and earn TFUEL as a reward.
According to the Theta Explorer, 57.96% of the 1 billion THETA available in the network will be staked out as of March 10th. That number has slowly increased as the project attracts more attention.
The more THETA is used in the network, the more TFUEL plays a role in the ecosystem, as the token is increasingly used for interaction with community members and the transfer of value.
After Theta 3.0 launches on April 21st, token holders will use TFUEL as another way to generate passive income and help secure the network. The upgrade also introduces a new burning mechanism that is essentially a “network charge” for using the Theta Edge. This could ultimately lead to a further reduction in the TFUEL supply and a price increase.
VORTECS ™ data from Cointelegraph Markets Pro identified an optimistic outlook for TFUEL on March 6, ahead of the recent price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the graph above, the VORTECS ™ for TFUEL peaked at 70 on March 6th, followed by a further increase to 67 on March 7th, less than 6 hours before the price hit the rose 56% over the next 48 years. Hours days.
Because of the harsh network bifurcation on March 10, some may see the recent price hike of THETA and TFUEL as a “buy the rumor, sell the news” type of event, but beats upcoming developments for the protocol, including the launch of the Theta 3.0 mainnet suggest that the rally for this dual token system is just beginning.
As smart contract features go online and enable the creation of NFT and decentralized financial applications, the Theta ecosystem is well positioned to attract new users and support increased engagement, which may lead to another upward trend for THETA and TFUEL.
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