Celestia’s native token, TIA, has been the second-worst performer among the top 100 cryptocurrencies in terms of market cap over the past seven days. TIA, which was traded at $6.24 on September 25, is currently at $4.86. Of course, the reason for the decline is the unlocking of hundreds of millions of dollars. Last month, we mentioned that there may be price fluctuations due to huge supply.
TIA Coin Unlocking
TIA’s sudden price drop is related to the lock opening of 175.56 million TIA tokens, which is scheduled to take place at the end of the month. According to Crypto research firm Messari, this unlock accounts for approximately 82% of the current circulating supply and is worth approximately $853 million. While supply above 5% during lock openings can generally cause sudden declines, the figure is much higher here. Moreover, when interest in altcoins weakens, serious liquidity problems may occur. Kairos Co-Founder said:
I think investors may have made a profit. I expect volatility to be high on the lock opening day.
Celestia’s Series A and B round investors were allocated 65 million TIA tokens worth approximately $311 million. $278 million was allocated for early contributors. The remaining $251 million was allocated to seed investment round investors.
TIA Coin Lock Opening Calendar
According to Messari, this event marks the beginning of lock openings that will continue monthly for the next three years. Approximately 30 million TIA will be released per month from November 2024 to October 2025, at least 9.7 million tokens per month from November 2025 to October 2026, and 5.1 million TIA per month from November 2026 to October 2027. As we see in examples such as DYDX, limited supply and huge pricing created peaks that were impossible to reach with lock openings. We can see this for TIA Coin as well.
On the Celestia network, developers pay transaction fees in TIA. By transferring their TIA to a validator, users can receive a share of the validator’s staking rewards. TIA staking participants also have the right to vote on governance proposals that will change the parameters of the network. Classic token benefits
These developments could have significant impacts on the future performance of the TIA token and the ecosystem of the Celestia network. Volatility triggered by huge lock openings is exciting for investors pursuing short-term trades.
Investors and market analysts note that large token unlocks often lead to price fluctuations. For this reason, the coming period may be difficult for TIA Coin due to high token inflation.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
