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Since TIA’s launch in October 2023, the native token of the Celestia blockchain has returned a 9x returns for investors at its all time high (ATH).
Recently, TIA has been experiencing a price correction, giving investors who missed out on the initial gains another entry opportunity. Data from Coinmarketcap shows that TIA is currently no.52 in the list of top 100 cryptocurrencies.
After hitting an ATH of $21 in mid-February, TIA has been on a steady dip, dropping by 30% to currently trade at $13.5. With TIA approaching a key support level between $11.5 to $12, it presents a low risk to reward entry zone for traders and investors alike.
Before we dive into TIA’s price action, let’s take a look at what makes the Celestia ecosystem a viable long-term hold.
Celestia - The Data Availability Network
Celestia is a modular data availability network that makes it easy for anyone to launch their own blockchain with a distinct feature that allows it to securely scale as the number of users on its blockchain grows.
Celestia is essentially enabling blockchain architectures that are highly scalable. These scalable blockchain architectures are known as modular blockchains.
Celestia provides an efficient solution to the data availability challenge by utilizing resource-limited light nodes to test a sample size of random shares from each block to verify data availability.
The interesting part is that the more light nodes that participate in this sampling, the more data the network can safely handle. This enables the blockchain to securely increase the block size without increasing the cost to verify the chain.
Furthermore, a core part of Celestia's vision is to make blockchain deployment as effortless as setting up a smart contract. With the rise of modularity, developers are freed from the necessity of issuing a token to initiate their own blockchain.
How is TIA Used in the Celestia Ecosystem
TIA, Celestia's native asset, plays a crucial role in developers' utilization of the modular blockchain network. To employ Celestia for data availability, rollup developers engage in submitting "PayForBlobs" transactions on the network, incurring fees denominated in TIA.
Just as ETH serves on Ethereum-based rollups, developers have the option to swiftly kickstart their chain by employing TIA as both a gas token and currency, alongside covering data availability costs. This approach enables developers to concentrate on crafting their application or execution layer without immediate token issuance.
Built on the Cosmos SDK as a permissionless network, Celestia employs proof-of-stake (POS) to safeguard its consensus mechanism. Similar to other Cosmos networks, any user can contribute to network security by delegating their TIA to a Celestia validator, thereby earning a share of the validator's staking rewards.
TIA staking enables the community to wield significant influence in decentralized governance across crucial aspects of Celestia. This includes voting on network parameters via governance proposals and overseeing the community pool, which is allocated 2% of block rewards.
A recent tweet by @heycape_ highlighted a list of solid projects on the Celestia ecosystem that have raised a combined funding of $660 Million.
With these new projects requiring TIA for various activities on the Celestia blockchain, the buying pressure on TIA is bound to skyrocket in the coming weeks to months.
TIA’s Price Action
A look at TIA’s price action on the daily timeframe noted a price rejection at the $15.3 resistance level. Despite buyers being unable to surmount this selling hurdle, the capital inflows for TIA continued to rise with the Chaikin Money Flow (CMF) standing at +0.07.
A good buy zone for TIA will be at the current market price of $13.5 with extra room to dollar cost average (DCA) at the next support levels of $11.8 and $9.3, in the event of further price drops.
How to Benefit From TIA’s Potential Price Pump
One of the key ways to benefit from TIA’s potential price increase is to buy and stake TIA. Staking TIA can be done in five easy steps:
- Purchase $TIA from your preferred CEX/DEX platform
- Install the Keplr Wallet at https://wallet.keplr.app/chains/celestia
- Transfer $TIA to your Keplr wallet
- Access the dashboard in your Keplr wallet and select a validator.
- Enter desired staking amount (Recommended to stake at least 15 $TIA)
- Click on "Stake.”
It is vital to avoid the top 10 validators due to lesser staking rewards, while aiming for an optimal validator commission fee range of between 4-8%.
Staking TIA is a secure to keep growing your TIA portfolio as you earn rewards while positioning yourself for airdrops from new projects launching on Celestia.
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