The blockchain world is abuzz with Celestia’s recent Ginger upgrade, which has dramatically increased the network’s throughput. Despite this significant technological leap, the price of Celestia’s native token, TIA, has shown little movement. This paradoxical response has left investors and analysts questioning the underlying factors influencing TIA’s price dynamics.
Celestia’s Ginger upgrade has substantially boosted the network’s data availability (DA), crucial for handling Ethereum (ETH) Layer 2 (L2) transactions. According to Blockworks research analyst Dan Smith, Celestia has achieved a fivefold increase in throughput following the upgrade. Smith noted,
“Celestia hit a new all-time high yesterday – 11.85 GB of data posted, almost entirely from EclipseFND. Celestia handled 5X the data posted to Ethereum blobs at a 99.6% lower fee per MB of data.”
This improvement positions Celestia as the most cost-effective DA provider for ETH L2 transactions, potentially attracting a broader user base and more substantial transaction volumes.
Despite the impressive technological advancements, TIA’s price has remained subdued. On-chain data and price charts have not reflected the positive sentiment one might expect from such a significant upgrade. Several factors contribute to this muted response:
While the current sentiment around TIA appears bearish, some analysts argue that this could present a lucrative buying opportunity. With TIA’s price down and technical indicators showing oversold conditions, a reversal could be on the horizon if positive sentiment returns.
Predicting the future price of TIA involves considering both technical indicators and broader market trends. Unless technical chart indicators, such as the RSI and CMF, show signs of reversal, TIA might continue to face downward pressure. However, if the market sentiment improves and Celestia’s technological advancements attract more users, TIA could see a resurgence in demand and a subsequent price increase.
Celestia’s Ginger upgrade marks a significant technological advancement, enhancing the network’s throughput and positioning it as a leading DA provider for ETH L2 transactions. Despite this, TIA’s price has remained stagnant, influenced by bearish sentiment and low market interest. Investors should monitor technical indicators and market sentiment closely, as a potential reversal could present substantial gains. As Celestia continues to innovate, the long-term prospects for TIA remain promising, contingent on broader market dynamics and investor confidence.
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