Celestia’s TIA token has surged over 20% in the last 24 hours, catching the attention of market participants. The rise is attributed to factors such as TIA staking, the modular narrative, and AirDrop expectations. TIA’s price reached $16.69, with a record 24-hour trading volume of approximately $867 million, according to CoinMarketCap.
Staking on the Celestia network with TIA offers an annual yield of 15-17%, significantly higher than the 4% risk-free return of US 10-year Treasury bonds. This attractive yield has seemingly increased demand for the altcoin, pushing its market value over $2.5 billion.
Celestia, a modular blockchain network, launched its mainnet beta in October and performed an AirDrop of TIA tokens to an estimated 580,000 users. The altcoin began trading at around $2.30 following its initial listing on major cryptocurrency exchanges like Binance and OKX.
Modular blockchains, unlike monolithic networks that scale at the expense of decentralization or security, are designed to solve scalability issues using specific channels for speed and execution. Celestia also employs Data Availability Sampling (DAS), enhancing the speed of data transfer.
The anticipation of future AirDrops to stakers on projects built on the Celestia network also supports the altcoin’s rise. Recently, the multi-layer blockchain network Dymension AirDropped DYM tokens to various market participants, including TIA stakers, suggesting potential high valuations for AirDropped tokens and increasing TIA’s appeal.