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A recent event of Celestia’s Mainnet has increased the price of its native token TIA by over 20%. This rise comes after the Lemongrass upgrade, which brings in features such as 1-click interactions over IBC and interchain accounts.
These enhancements have led to a recovery in the altcoin market and boosted the investors’ confidence in the Celestia network. The Lemongrass upgrade introduces new network improvements that include minimum gas prices to reduce spamming and better cross-chain transfers.
Celestia’s update also improves the compatibility of the protocol with the Cosmos ecosystem and makes it a more force to reckon with in the blockchain industry. Consequently, the price trend of TIA token is positive and it has been trading above crucial support levels.
TIA Token Price Analysis and On-Chain Data
Earlier today, September 18, Celestia presented its first major update called Lemongrass. New features in this update include cross-chain account support while old features such as Blobstream have been removed.
These changes are to enhance the network performance and reduce the time taken to make upgrades to the network.
1-day TIA trading chart: source Coinmarketcap
The most recent trading activity of TIA token in the market indicates that there is a lot of interest in the asset. In the last one day, TIA has been trading in the range of $5.01 and $6.48, marking a 21.55% increase.
The market has increased the market cap by 21.2%, this shows a spike in the demand for the token in the market. The token’s price hit a high of $6.48 then slightly dropped, settling at $6.32.
Market activity has increased by 79.95% in 24-hour trading volume, reaching $312.67 million. This increase in trading volume and price is in line with increasing investor interest after the mainnet upgrade.
The volume-to-market capitalization ratio is 23.46%, which is quite high for the market, suggesting that there is active trading going on. Moreover, Celestial has a total circulating supply of 211.83 million together with a total supply of 1.07 billion.
All these stats give a strong market performance of the token. TIA token has bounced off a critical support zone, signaling a potential breakout.
Past Performance and Market Outlook for TIA
Recently, Celestia (TIA) bounced back and traded above 20% within the last week approaching the breakout level. Buyers have begun to push back against the key resistance level at the $5 mark which was acting as a barrier preventing the price from going higher.
TIA is also showing some signs of reversal from the volatility that was seen in the past. The token is now stabilizing.
Analysts Weigh in on Celestia’s future
Cryptocurrency analyst Altcoin Sherpan has raised concerns about TIA’s long-term price outlook. He predicts the token could drop below $1 but suggests short-term gains due to potential market volatility. Sherpa advises investors to consider short-term positions with entry points between $4.60 and $4.40.
Looking ahead, Celestia plans to unlock 175.74 million TIA coins on October 31. This increase in circulating supply could exert downward pressure on TIA’s price. Early investors may sell off their holdings, leading to potential market corrections.
With short squeeze dynamics and token unlocks on the horizon, TIA’s price remains uncertain. Investors should proceed cautiously and closely monitor market trends and expert predictions.