Crypto Traders Remain Bullish on Celestia (TIA) Even After 480% Rally – Here’s Why
Modular blockchain Celestia has made impressive progress since its launch on October 31, 2023, when TIA tokens were downloaded to 580,000 users and the mainnet went live. TIA has increased over 460% from its initial price of $2.10 to a price of $13 since its launch.
The altcoin had a slow start in terms of on-chain activity, facilitating only 510,000 transactions in its first two days, according to MintScan data.
However, as merchant appetite grew, TIA prices followed suit and eventually activity on the chain grew as well. MintScan data shows that the network has facilitated 6,649,287 transactions since its launch on October 31, 2023.
In comparison, rival blockchain Cosmos averaged 2.3 million transactions over the past 30 days, compared to Celestia's 5.9 million, according to Mintscan data.
Sentiment data shows that Celestia's activity has grown 85% in two weeks. While social volume and growth activity have slowed over the past few weeks, these metrics will start to pick up in 2024, according to data from on-chain analytics firm Sentiment.
TIA's value has grown along with activity on the chain. Demand for TIA grew as users connected to the blockchain, leading to price growth. The interest in TIA grew out of the desire to find large beneficial catalysts in the cosmos ecosystem and osmosis. Additionally, maintaining TIA comes with the hope that projects integrated with Celestia will issue token airdrops, similar to how the Solana Gito and Marinade DeFi protocols rewarded users with tokens in December 2023.
TIA's price was $13 on January 3 after a 42% gain in 30 days and an impressive 481% increase over the previous 90-day period.
Its market cap has increased over 15 days, from near-absence to $885 million on November 15, 2023. TIA's market capitalization currently stands at $1.9 billion, according to data from CoinMarketCap.
TIA's value growth is believed to coincide with the launch of the Celestia mainnet beta on October 31, 2023, marking the beginning of the modular blockchain era.
Celestia's “Data Discovery” provides a scalable solution
Celestia differentiates itself from its competitors as a modular data delivery network designed to improve blockchain scalability and enhance the developer experience. The design allows it to provide a scalable data access layer for other blockchains, also known as “packages”.
By separating the application and consensus layers, Celestia allows these bundles to execute transactions independently, ensuring that transaction data is available and verifiable by anyone.
This feature ensures the easy creation of unique, enhanced flexibility and efficient blockchains, promoting a more flexible decentralized ecosystem.
This concept is somewhat similar to how zero-knowledge proofs work in Ethereum, where users are only required to download 1-2% of the entire chain to prove it. Celestia enforces this through light nodes that download the smallest part of the chain.
One metric used to evaluate blockchain scalability is Transactions Per Second (TPS). Celestia is currently at a total of 14 TPS. Meanwhile, Arbitrum has a daily average of 13.31 TPS, according to L2Beat.
This is an impressive performance given that Celestia has only been released for less than 4-months and network adoption is not comparable to Arbitrum, which has been running since May 2021.
Arbitrum faces stiff competition from industry giants such as NEAR, which has joined Celestian in the race for its Ethereum bundle data delivery service.
While Celestia's data accessibility scale may find more users, it remains to be seen how the price will respond as the ecosystem grows.
Related: Celestia to merge with Polygon CDK for data delivery in 2024
TIA's price trading is in a key demand zone.
As market participants await the United States Securities and Exchange Commission's (SEC) decision on spot Bitcoin ETF applications, TIA is down along with top cryptocurrencies.
In addition to the bearish sentiment across the board on January 3, the sell-off in TIA's price could be attributed to the recent profit-taking of up to $14. The token has recorded a series of lower highs and lower lows over the past three days, leading to a descending parallel channel on the four-hour chart (see below).
As long as the price remains within the descending channel limits, this is a significant bearish chart pattern that points to the next decline.
The Relative Strength Index (RSI) has dropped below the 50-point mark, suggesting that the bulls are beginning to lose market dominance to the bears. Key levels to watch on the downside are the 100-time moving average (EMA) at $12.38 and the key support level at $11.18.
On the upside, Celestia's price traded in a high demand zone of $11.18 to $12.91. Note that this support zone provided a launch pad for the TIA in the near term as shown in the hourly chart above.
The first time was on December 14, 2023, when the crypto surged to $25%, peaking at $14.76. The next periods were December 20, 2023 and December 23, 2023, when prices rose 16 percent and 29 percent from the same interest zone.
If a similar scenario occurs, Celtia buyers from this interest zone could push the price 22% from current levels with their eyes set on psychological levels of $15 or $20.
$TIA still looks aggressive here
I expect a larger pump around $20-$30✈️.
Free tokens: #Celestia #TIA #TIAUSDT #TIACoin #cryptocurrency pic.twitter.com/4gAB6t0OWl
— Altcoin Dispatch (@AltcoinDispatch) January 3, 2024
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
