Why Celestia’s TIA prices jump 25% to new ATH

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Celestia’s TIA token has surged 25% in the past 24 hours, bucking the broader market’s subdued trend as investor interest in TIA staking increases as hype for the technology underlying blockchain continues to grow.

As of this writing, TIA is trading at $17.18, which is also the coin’s new ATH, with trading volume of nearly $864 million in the past 24 hours.

TIA price chart. Source: TradingView

Staking involves locking funds in a cryptocurrency network in exchange for rewards. Staking TIA on the native platform can bring in 15% to 17% annual profits (minus user fees). Compared to the 4% risk-free rate on the 10-year U.S. Treasury note, the unusually high yield appears to be attracting demand for cryptocurrencies. As of this writing, TIA’s market capitalization currently exceeds $2.4 billion.

And these expected Information about future airdrops for stakers from projects built on the Celestia blockchain.

I’m on a pretty big, expensive 39% move on modular coins and only 2 out of about 15 snapshots have been posted so far – thesis is wrapping up

Future entrants will also increasingly need to pay higher prices to pledge integers: 10, 25, 50

FDV is still a meme… pic.twitter.com/jzj9JUNCH8

— CC2 (@CC2Ventures) January 4, 2024

Earlier this week, multi-layer blockchain protocol Dymension airdropped its DYM token to multiple market participants, including staker TIA. In a bull market, the potential overvaluation of airdrop tokens means that participants can make huge profits simply by staking TIA, which may enhance its current appeal.

An airdrop is an active distribution of tokens to blockchain users, typically those participating in network-related activities or using native applications.

“Modular Era”

The so-called Celestia modular blockchain launched a mainnet beta in October and issued TIA tokens to about 580,000 users. Initially, the coin was trading at around $2.3 on exchanges like Binance and OKX.

Modular blockchains aim to solve scalability issues by using specific channels to increase speed and execution, unlike monolithic blockchains that can only scale at the expense of decentralization or security.

Celestia also uses Data Availability Sampling (DAS), a method of validating all data available on the blockchain. This combination is said to help increase data transfer speeds.

“This is the beginning of a new era,” the Celestia Foundation, which supports online development, wrote in a blog post at the time. “The age of modularity.”

The term has since gained hype in cryptocurrency circles—almost becoming a meme.

Such stories are important in the cryptocurrency market and often lead to huge profits for early investors.

The memecoin-led frenzy on the Solana and Avalanche blockchains in November brought hundreds of thousands of dollars in profits to part-time traders, while the Metis network has seen over $50 million in inflows in the past few weeks in anticipation of its upcoming giveaway. The model sparked hype among users.