Celestia Modular Blockchain Records Remarkable Growth and Outperforms Rivals in Transactions
Summary:
Since its launch on October 31, 2023, modular blockchain Celestia has seen exceptional growth, with TIA's price soaring over 460% from its debut. Despite a slow start, the blockchain network facilitated 6,649,287 transactions in less than three months, outperforming its rival, Cosmos. The company attributes this success to its unique scalable data availability network, which enhances blockchain scalability and improves the developer experience. However, despite the promising start, it remains to be seen how the ecosystem's growth will influence the price.
Since its inception on October 31, 2023, Celestia, the modular blockchain, has seen exceptional growth, with the launch of TIA tokens offered to 580,000 users and the mainnet going live. TIA's price soared over 460% from its initial rate of $2.10 to its present $13 value. The initial number of on-chain transactions was a lackluster 510,000 in the first couple of days, as per data from MintScan. Yet, the TIA price surged as trader interest flourished, leading to increased on-chain activity. According to MintScan data, the network has facilitated 6,649,287 transactions since it was debuted. On the other hand, rival blockchain Cosmos has managed 2.3 million transactions in the past month, in contrast to Celestia's 5.9 million. Celestia's activity boosted by 85% in just 14 days, says Santiment's data. Despite the recent reduction in social and development activity, these indicators have shown improvement in 2024, as per Santiment. As more users engaged with the blockchain, the price of TIA rose, reflecting the demand. The lure of substantial staking incentives in the Cosmos Ecosystem and Osmosis fueled the demand for TIA. Moreover, staking TIA brings the expectation of token airdrops from projects affiliated with Celestia, much like Solana's Jito and Marinade DeFi protocols which rewarded users in December 2023. On January 3, the price per TIA was $13, representing a 42% boost in a month and a spectacular 481% surge in the prior 90 days. The market cap exploded to an amazing $885 million on November 15, 2023, within just 15 days from almost non-existent, and currently stands at $1.9 billion as per CoinMarketCap data. The impressive growth is considered to align with Celestia’s mainnet beta launch on October 31, 2023, signaling the start of the modular blockchain age. Distinguishing itself as a modular data availability network, Celestia offers solutions to enhance scalability and improve developers' experience. It provides a scalable data availability layer for other blockchains, dubbed as "rollups," through its architecture. This enables concurrent transaction execution while assuring data availability for validation. The approach resembles Ethereum's Zero-Knowledge proofs, allowing users to download only a minor portion of the entire chain for validation by leveraging light nodes. A metric employed to assess scalability of blockchains is transactions per second (TPS). Celestia is currently recording 14 TPS, while Arbitrum averages 13.31 TPS per day, as per L2Beat. This is impressive considering Celestia launched just four months ago and yet has yet to see the same adoption scale as Arbitrum, up and running since May 2021. The scalable data availability layer of Celestia might attract a niche user base but the price reaction with ecosystem growth remains to be seen. Amid the top currencies taking a hit, TIA's price slipped too as the market waits for the SEC's verdict on Bitcoin ETF applications. TIA's price dip could possibly be due to profit booking after it zoomed to $14. A descending parallel channel on the four-hour graph hints at the declining trend with continuous drop if the price stays within the channel bounds. The relative strength index has dipped below 50, pointing towards a shift in market dominance from bulls to bears. A price bump of 22% from the current position is likely if Celestia buyers rally, targeting $15 or $20. The outlook for TIA remains bullish according to a forecast by Altcoin Dispatch. This piece does not offer investment guidance or recommendations. Every trade and investment come with risk; readers should undertake their own research before making decisions.
Published At
1/3/2024 11:40:32 PM
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