As a consequence, Celestia’s native token, $TIA, faced an 8% price drop, closing at $1.77 during a general market sell-off. This decrease marks a continuation of the softening trend seen last week. While the short-term outlook is indeed bearish, Celestia is positioning itself for something bigger. Given the growing technical improvements and adoption, there is a chance to recover back above $2 medium to long-term.
The $TIA market cap as of writing is $1.2 billion with $144 million in daily trading volume. Recent market activity has seen significant shifts, including a notable buyback by the Celestia Foundation and strategic adjustments by Polychain Capital, influencing the token's price dynamics.
Strategic Buyback and Token Redistribution
The most recent large transaction we could find was the recent 43,451,616.09 TIA purchase made by the Celestia Foundation from Polychain Capital for roughly $62.5 million. This is a very clever play as it helps redistribute tokens to fresh investors, creating wider token ownership and helping stabilize the volatility of the token’s price.
Next up Polychain Capital, who are expected to undelegate their entire staked $TIA holdings soon. We will redistribute the TIA tokens we repurchase to the new investors. This will occur under a rolling unlock schedule that extends from August 16-November 14. This distribution strategy is intended to help onboard liquidity over time, while avoiding abrupt shocks to the market.
As a result, this buyback and redistribution strategy underscores Celestia’s belief in long-term growth and stability. Through careful and thoughtful supply management, the foundation’s goal is to ensure the longevity of the ecosystem and build a network that’s attractive to new participants.
Technical Upgrades and Network Enhancements
Celestia has made big strides since launch, consistently focusing on technical upgrades to increase the network’s capabilities and performance. The new Mamo-1 testnet allows for 128 MB blocks, a huge jump from the current mainnet’s 8 MB limit.
This upgrade translates to an impressive 21.33 MB/s throughput, positioning Celestia as a high-performance backbone for next-generation blockchain scaling solutions. These upgrades are needed to serve the increasing demands of the decentralized applications and layer-2 solutions that will be developed on top of Celestia.
Market Analysis and Future Outlook
After the recent price drop, $TIA is back at $1.75, scarcely above the consolidation band from late June. If volume can remain this high, then the price will continue to fall even more. It can maybe get down to $1.60 or possibly as low as $1.52.
The eventual rejection here at $2.30 indicated that $TIA was toast. With no new highs from last week, it created the conditions for a possible rollover. In-depth market analysis shows that one especially nasty 4-hour bar had a -562.31K delta. This happened on over 23 million in volume, proving that active selling was walking into seated areas of the bid.
Despite the current market pressures, Celestia is witnessing tangible adoption, as evidenced by Noble's development of financial tools utilizing Celestia's stablecoin infrastructure. This real-world application of Celestia’s technology is a great step toward improving the long-term growth and sustainability of the ecosystem.
