One of the cryptocurrencies with the strongest performance over the last several months is TIA, the governance token of Celestia. A few points above its previous record high of $15.20, it surged to a new high of $16.15 today.
To the delight of traders and investors, the altcoin’s value has increased by over 35% during today’s rise, according to statistics from Coingecko. This strong performance puts TIA on track to hitting its $20 target. Since October of last year, when TIA was at its lowest, it has increased by more than 500% overall.
Following the mainnet’s activation and the airdrop of tokens to 580,000 users on October 31, 2023, TIA has experienced remarkable growth. The modular blockchain cryptocurrency has increased in value since its launch by over 460%, from its $2.10 start price to over $16 at present.
TIA’s Market Dynamics
To begin with, Celestia is a relatively new platform offering modular options for data availability. It seeks to scale a blockchain network as its user base increases by doing that. On its website, Celestia lists some of the companies that now use it, including Near Protocol, Arbitrum Orbit, Cartesi, and Cosmology.
Because of its substantial market capitalization, TIA has demonstrated great liquidity, which has improved trading conditions for investors. For over two weeks, the token’s price has likewise been fluctuating between $14 and $15.
Total crypto market cap is currently at $1.6 trillion. Chart: TradingView.com
One of two things will happen while TIA trades in this range: either a bounce that results in an exponential rally or a pullback that results in a sharp correction.
The main obstacle facing investors in Celestia is the significant dilution they might anticipate in the upcoming years. Coingecko data shows there are currently over 145 million units in circulation out of a potential supply of over 1 billion units.
According to data from MintScan, the altcoin had a poor start to on-chain activity, enabling just 510,000 transactions in the first two days.
But when traders’ interest increased, the price of TIA rose as well, and eventually, on-chain activity increased as well. Since its launch on October 31, 2023, the network has enabled over 6.6 million transactions, according to MintScan data.
Relative Strength Index (RSI) for TIA is currently at the halfway point, indicating that a bounce might occur. Additionally, the Awesome Oscillator (AO) declines in direction of the zero mean level.
Celestia’s social volume and development activity. Source: Santiment
2024 Uptick Despite Declines
Meanwhile, Santiment data shows that in just two weeks, Celestia’s activity increased by 85%. Based on data, these metrics have begun to increase in 2024, despite the recent decline in social traffic and development activity.
When more than 175 million tokens come online in October, the next Celestia token unlock will take place, according to TokenUnlocks. Since token unlocks add to the total quantity of tokens in circulation, they are viewed as extremely negative.
While Celestia’s impressive price hike and TIA’s ambitious target paint a rosy picture, it’s crucial to remember that the crypto market is notoriously volatile. Investors should remain cautious and conduct thorough research before diving headfirst into this dynamic space.
Nevertheless, Celestia’s underlying technology and the growing traction of its interoperability solutions undoubtedly warrant close attention. The next few months could be pivotal for modular blockchains, and Celestia is undoubtedly at the forefront of this movement.
Featured image from Pexels
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Credit: Source link
