Despite Lackluster On-Chain Activity, TIA Price Continues to Surge
Despite handling just 160,000 transactions over the past 13 days, the token of modular blockchain Celestia, TIA, has shown remarkable price gains since its launch.
Although on-chain activity has been subdued, TIA price continues to "hold the line". Image: CoinGecko
Pioneering in the field of Modular Blockchain, Celestia has had a somewhat challenging start. However, this hasn't dampened trader interest; instead, it has driven TIA's price steadily upward since its initial release.
According to data from MintScan, Celestia processed 350,000 transactions in its first two days, but this number dwindled to around 160,000 in subsequent days.
Comparatively, Arbitrum, a rival blockchain, recorded an average of 550,000 to 920,000 daily transactions over the past week, as per Arbiscan data.
Another metric for evaluating blockchain scalability is TPS (Transactions per second), which refers to the number of transactions a network can process per second. According to L2Beat, Celestia currently achieves 0.13 TPS, whereas Arbitrum averages 8.01 TPS daily.
Due to Celestia's newcomer status, comparing it to well-established projects like Arbitrum, operational since May 2021, may be somewhat unfair. In reality, Celestia faces competition from heavyweight contenders like NEAR, a network that previously collaborated with Celestia to provide data for Ethereum rollups.
Nevertheless, Celestia's tokenomics remain highly regarded, with only 141 million tokens circulating out of a 1 billion hard cap. The majority of the total supply will remain locked until October 2024 and October 2026. Over the past 24 hours, TIA trading volume approached $900 million USD, surpassing the market cap of all tokens currently circulating.
Amidst the positive market sentiment, TIA has achieved a performance surge of up to 200% in November and continuously set new highs recently. The highest price point established since mainnet launch is $6.54 USD.
4-hour chart of TIA/USDT pair on Binance at 09:30 AM on November 16, 2023
Celestia's case bears similarities to Aptos in the past. Aptos also made waves with a massive airdrop program last year, propelling APT's market cap to a peak of $2.9 billion USD, despite the network's TVL being around $50 million USD at the time.
