Celestia Continues to Climb as TIA Crypto Price Increases by Further 16% — Here’s Why Traders Are Bullish

Key takeaways:

• Celestia’s TIA token has seen massive growth of over 460% since the mainnet launch on October 31, 2023, rising from $2.10 to $15 currently
• On-chain activity on Celestia has ramped up significantly, facilitating over 6.6 million transactions in the first 2 months, which is almost 3x more than activity on Cosmos.
• TIA’s market cap has exploded from near zero to $1.9 billion as of January 2024. Support levels between $11.18-$12.91 could act as launching pads for further upside.
• Our price prediction algorithm forecasts the TIA price to drop by 1.68% and reach $15.61by Jan 9.

The new blockchain project Celestia has seen immense growth since launching its mainnet and distributing tokens at the end of October 2023. In just over two months, Celestia’s native TIA token has surged over 460% from its initial price of $2.10.

Despite a slow start, with only 510,000 transactions in the first two days, Celestia has ramped up network activity significantly. According to data from MintScan, the blockchain facilitated over 6.6 million transactions in its first two months. This is nearly triple the 2.3 million transactions seen on Cosmos over the past 30 days.

Celestia Transaction Summary/ Source: MintScan

According to analytics firm Santiment reported, development activity and social volume dipped after the launch but are picking back up in early 2024. This renewed interest from developers and users has coincided with TIA’s meteoric price rise.

Several key factors that attribute TIA’s growth:

• Mainnet Launch: The mainnet beta went live on Oct 31, 2023 marking the official debut of Celestia and its modular blockchain technology. 
• Staking Incentives: TIA offers lucrative staking rewards, incentivizing holders to lock up their tokens. Staking also allows participation in airdrops from projects launching on Celestia.
• Scalability Solution: Celestia aims to improve blockchain scalability and the developer experience through its data availability layer. By separating execution and data storage, it facilitates building specialized blockchains.
• Market Cap Increase: TIA’s market cap exploded from near zero to $885 million within 15 days of mainnet launch. It now stands at $1.9 billion as of January 2024.

Additionally, Celestia is positioning itself as a data availability network for roll ups and sidechains. Its architecture only requires users to download a small portion of data to validate transactions, similar to how zero-knowledge proofs work on Ethereum.

In terms of transactions per second, Celestia is currently averaging 14 TPS according to data. For comparison, Ethereum scaling solution Arbitrum averages around 13 TPS. However, as adoption increases, Celestia aims to rival competitors like NEAR in providing data availability services.

After peaking at $14 in late December, TIA pulled back alongside the broader crypto market, and the profit-taking after the recent rally as well as uncertainty around a Bitcoin ETF decision likely contributed.

However, key support levels between $11.18 and $12.91 have provided launching pads for the next leg up, as TIA has repeatedly bounced off this demand zone and surged over 20% in late December.

With developers and users returning to the ecosystem, analysts are optimistic about TIA reclaiming its all-time high. However, it remains to be seen how Increased competition in the data availability space could impact adoption and valuations long-term.

Celestia (TIA) Price Movement

The current price of TIA has surged in the last 24 hours reaching $15.90, with a market cap of $2.47 billion and 24 hours trading volume of over $1.94 billion.

Additionally, the algorithm also predicts the token price to drop by -1.68% to $15.61 in the next 5 days. However, based on historical price movements, TIA is predicted to surge as high as $20.87 in 2025 and $53.28 in 2030.