TIA, the native token of the modular blockchain network Celestia, has surged 20% and is the top gainer among cryptocurrencies today.
At the time of writing, TIA is still up 18.5% in the past 24 hours, trading at $7.21. The crypto asset’s market cap jumped past $1.4 billion, making it the 55th largest cryptocurrency per data from CoinMarketCap.
However, Celestia is still down 65% from its all-time high of $20.91, which it reached on Feb. 10.
The modular blockchain debuted on October 31, 2023, welcoming 580,000 users eligible for its airdrop. Celestia stands apart from traditional monolithic blockchains by employing data availability sampling (DAS) rather than executing through consensus.
This approach not only scales the network but also alleviates settlement constraints.
Celestia’s latest surge in price comes as a market expert and technical analyst, DeFiSquared, in a July 9 X post, shed light on the uptrend of Celestia, attributing its standout performance in a generally stagnant crypto market to its role as a blockchain infrastructure enabling “real and useful activity.”
— DeFi^2 (@DefiSquared) July 9, 2024After a nearly 80% drop from highs, Celestia has finally been showing some strength again.
The move is interesting because despite current poor market conditions being largely a result of perceived lack of utility in crypto, Celestia appears to be one of the few pieces of… pic.twitter.com/ne5lPrk0OW
The analyst pointed out that a large chunk of data on Celestia originates from the Orderly Network, which offers permissionless liquidity to on-chain perpetual markets—a sector with robust and growing demand. This network processes a substantial volume, often surpassing half a billion daily trades.
DeFiSquared emphasized the necessity of a data availability layer like Celestia, which supports secure, permissionless liquidity for these markets, suggesting a solid market foundation for the blockchain.
The sentiment is further boosted by the Modular Summit, where Celestia is playing a significant role, which coincides with a 23% surge in its trading volume in the last 24 hours, reaching $251 million, per data from CoinMarketCap.
DeFiSquared also noted that despite attempts by traders to short the upward trend and negative funding rates on perpetual trades, indicators of a potential market bottom are fostering optimism.
The analyst further noted that insiders are currently unable to sell their shares due to a vesting period that extends for over 100 days, contributing to additional market stability.
Moreover, another X user with the moniker SatoshiFlipper discussed the TIA daily chart with his 203,000 followers, noting that surpassing the $8.50 mark, which has been a consolidation point for eight months, could lead to substantial price increases.
He noted that the longer the consolidation, the more potent the expected upward price movement.
— 🧙 Crypto_Jobs🧙♂️ TA & FA 🎯 (@CryptoJobs3) July 9, 2024$TIA – price update: 🚀
➡️In my opinion, regarding the FA behind the project, around 6 – 5$ / tokens, #TIA price remain very undervalue.
-The monthly low has probably been touched. It can be the true bottom and the price will probably never stay around $4 – $5!
-A pump and… pic.twitter.com/Pm8hBckhij