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Is Celestia(TIA) a good investment? Insights Into TIA’s value structures

 

By Nerly Shammah Feb 11, 2024

 

Celestia blockchain introduces an interesting scaling tech to the crypto ecosystem, putting the modular data availability network on the map of high value blockchain networks. 

 

But, how good of an investment is TIA in the light of its blockchain’s tech stack? In this article, we'd explore Celestia blockchain’s potential value roles capable of putting its native token “TIA” on the list of highly appreciating crypto assets. 

 

 

 

Understanding Celestia’s(TIA) Value Dynamics

 

The cryptocurrency industry continues to battle “scaling” flaws as protocol user growth causes fee spikes in developer-packed blockchain networks like Ethereum.

 

This perceived limitation calls for functional alternatives for product, project, or business developers to build services that can scale with user growth, effectively. 

 

Celestia blockchain, is one of many proposed solutions to scaling faults found on numerous blockchain networks. Raising a staggering $55 million in a Series A funding in October 19, 2022 and $1.5 Million in a seed funding in March 2021, backed by 15 investors including Bain Capital Crypto, Binance Labs, Polychain Capital, Jump Capital and Galaxy Digital, the Celestia blockchain delivers modular tech stack for building blockchains and building on blockchains.

 

As a perceived solution to years long scaling flaws experienced by blockchain networks, Celestia, whose mainnet went live on October 31, 2023, is poised to attract a vast number of developers looking to experience less bottlenecks that come with spikes in user activities as that implies a large amount of data passed onto blockchains and likewise queried.

 

The Dynamics Of Supply Within Crypto

 

As some would say that crypto is anti-fiat, the ecosystem vastly believes in “limited” supply coins and non-central controlled inflation, something absent in the world of fiat.

 

This belief holds strong with every phasing development, evident in the price performance of high supply coins when put up against low supply coins, scarcity is a perceived potential when it comes to crypto assets, thus, plays a crucial role in its market evolvement.

 

TIA, whilst not hard coded as a max supply, has a total supply of 1.022 Billion. The sentiment towards crypto tokens with 1 billion total or max supply are generally positive.

 

In addition to having a relatively low supply, TIA’s initial and current circulation is shy of 200 million with current reported numbers at 163,399,692 according to coingecko. At a price of $20 per token, this puts the Celestia native asset at over $3.2 billion in market capitalization.

 

That said, as revealed, most data points to TIA being a potentially good investment in the short term. When we look at the larger spectrum however, the data demands Celestia attracts a huge developer community or risk not being on the list of top performers.

 

One key metrics to look at for the long term is TIA’S fully diluted valuation(FDV) which is over $20 billion. A fully diluted valuation is simply derived by multiple current asset prices by its total supply, which in TIA’s case, is over 1 billion.

 

According to Messari, a prominent market intelligence firm within crypto, Celestia has to grow 2-10x of current Ethereum rollups to maintain that valuation. 

 

Upcoming Token Unlocks To Influence Price Actions

 

Speaking of supply, TIA’s upcoming token unlock makes our stance on TIA being a good short term investment even stronger. 

 

263 days from the time of writing - October 31,2024, TIA has over 183.98 Million token unlocks worth $3.6 billion, more than its current marketcap. These tokens include 13.2 Million from Series B funding, 51.8 Million from Series A funding, 8.38 Million Ecosystem fund, 52.5 Million from Seed Round, and 58.1 Million Team fund according to data from Chainbroker.

 

Interestingly, 30 days after, November 30, 2024, more token unlocks in the total of 33.17 million worth over $663.4 Million with more token unlocks in December is expected.

 

Expectations are that a couple of these tokens will hit the market and is expected to cause massive price shifts. It is important to note that based on available data on funding rounds, all funds are in high profits as the max price posted at Chainbroker is $1 per token.

 

Is TIA A Good Investment?

 

TIA is considerably a good short term investment by the merits of its blockchain’s service offerings, generally crypto bullrun speculations and growing airdrop expectancies with highly funded blockchain networks.