Theta Fuel price prediction: Is Theta gas token a wise buy?
TFUEL underpins many of the Theta Network’s functions. Beyond utility, is there investment potential?
Theta Fuel (TFUEL) is the secondary coin of the Theta Network, a blockchain solution with the media and entertainment industry in its sights. Since its inception in 2017, the California-based organisation has received a wave of institutional backing.
Steve Chen, co-founder of YouTube, is an official adviser. Private equity investors including DHVC, ZP Capital and Sierra Ventures have staked a total of $56m. Enterprise validator nodes include Google, Sony, Samsung and Binance.
With big names behind it and potentially impressive utility, should Theta Fuel (TFUEL) be on your watchlist? What are the TFUEL price predictions for the coming months and years?
Join us below as we answer these questions and more in our Theta Fuel price prediction.
The Theta Network: A quick overview
What is Theta Network, what is Theta Fuel (TFUEL) and what does the Theta Fuel cryptocurrency contribute to the network?
The Theta Network, described as a “next generation video and entertainment blockchain powered by you,” allows users to share unwanted bandwidth with interested parties, acting in some ways like a decentralised YouTube platform. This process is made possible through a massive global network of nodes. Anyone with a working computer can activate a node and earn TFUEL rewards by helping the network.
The Theta Network utilises edge computing technology, which can be thought of as a form of decentralised computing. According to The Verge, “Edge computing is computing that’s done at or near the source of the data, instead of relying on the cloud at one of a dozen data centres to do all the work.”
Theta Fuel: Tokenomics and utility
Not to be mistaken for the Theta Network’s governance token, THETA, Theta Fuel (TFUEL) underpins many of the operations on the Theta blockchain. Users are incentivised to share their excess bandwidth through TFUEL rewards. Edge Nodes relaying video streams and performing video-encoding tasks are paid in TFUEL.
A staking system was introduced in July 2021 that allows users to contribute to the Elite Edge Node network, an Edge Node upgrade providing greater bandwidth availability.
Of the 5.3 billion circulating supply of the fully diluted TFUEL coin, a total of 42.12% is currently staked to 7,865 Elite Edge Nodes. Each TFUEL token is priced at $0.0752 as of 12 August 2022, making for a market capitalisation of almost $400m. A recent 24-hour trading volume of $192m constituted nearly 50% of the market cap.
Since TFUEL is constantly minted based on network usage, it is an inflationary cryptocurrency. As such, a deflationary measure was introduced by way of a network fee. These network fees go towards burning TFUEL, thus reducing the circulating figure. The introduction of NFT drops in early 2022 increased transaction volume, further contributing to TFUEL deflation.
TFUEL is primarily obtained through the distribution of rewards on the Theta Network. However, Binance, Bithumb, Gate.io, KuCoin and other major exchanges do support a range of trading pairs.
From the forecasters
WalletInvestor’s Theta Fuel price prediction for 2022 suggests TFUEL is a “bad long-term (one year) investment”, and predicts the token will lose most of its value and trade at $0.0063 by the end of December.
Gov Capital provides a more bullish outlook, giving a 12-month price target of $0.39. The Theta Fuel price prediction for 2025 is for the token to pass the $1 mark in March, and close the year at $1.35. The site also provides a five-year outlook of $2.47.
PricePrediction’s TFUEL price prediction is also bullish, offering a 2025 price target of $0.23 and a 2027 target of $0.47. Looking further ahead, the forecaster has an average Theta Fuel price prediction for 2030 of $1.54.
According to DigitalCoinPrice’s Theta Fuel price prediction, the cryptocurrency can expect to stay below the $1 mark for the foreseeable future. Price targets include $0.10 for 2022, $0.15 for 2025 and $0.34 for 2030. The majority of the metrics used point to either a buy or neutral investing strategy.
Always bear in mind that these Theta Fuel price prediction estimates are just that. While they may be useful as a guide, they should not be taken as financial advice. Always conduct further research into any project you are considering investing into.
Currency.com recommends researching any crypto project’s whitepaper, roadmap, team background and social media channels. Third-party, independent advice should also be sought out.
How many Theta Fuel are there?
There are 5.61 billion TFUEL in circulation as of 12 August 2022. TFUEL is fully diluted and inflationary, meaning that the circulating figure always rises. To control inflation, Theta introduced a burning mechanism through network fees.
Is Theta Fuel a good investment?
Theta Fuel is typically used as a utility token on the Theta Network. For those interested in investing in Theta, the THETA governance token could be a better option.
Regardless of your decision, Currency.com always recommends a full due diligence review of any organisation you are considering an investment in.
Will Theta Fuel go up?
The online forecasters generally agree that TFUEL will go up in modest amounts. Bear in mind, however, that digital forecasters are not the authority on investment strategy and should only be used as a guide.
Should I invest in Theta Fuel?
You should come to that conclusion yourself after a comprehensive review of the project coupled with independent, third-party advice. Currency.com is not a financial advisor and this article is intended as a neutral source of information.