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Stellar Surge: TIA Token Skyrockets 22% Amid Growing Enthusiasm for Staking and 'Modular' Advancements

Cryptocurrency
HANZO
Jan 5, 2024 at 10:20 am

The demand for the TIA cryptocurrency has experienced a notable surge as users staking TIA on its native platforms enjoy returns ranging from 15% to 17%, net of fees. Within the last 24 hours, the TIA token from Celestia demonstrated exceptional growth, surpassing a 22% increase and defying the subdued trends seen across the broader market. This surge can be attributed to the growing interest among investors in staking TIA, aligning with the increasing enthusiasm for the underlying blockchain technology.

In the early hours of Friday in the Asian market, TIA traded just below $17 before undergoing a slight retracement. Impressively, it achieved a trading volume of nearly $800 million in the past day, marking a historic high in trading activity, according to data from CoinGecko.

Staking, a process where users lock their coins in a cryptocurrency network to receive rewards, has proven to be a lucrative endeavor for TIA on its native platforms, providing an annual yield of 15% to 17%, after factoring in fees. The substantial yield, notably higher than the U.S. risk-free rate of 4% offered by the U.S. 10-year Treasury note, is a key driver behind the increasing demand for the cryptocurrency. As of Friday, TIA's market capitalization hovers just under $2 billion, indicating potential profits for participants in a bullish market scenario, as both the increased value of rewards and the initially staked capital contribute to overall gains.

The anticipation for future airdrops to stakers from projects built on the Celestia blockchain adds an additional layer of excitement. This week, the multi-layer blockchain protocol, Dymension, conducted an airdrop of its DYM tokens to various market participants, including TIA stakers. In a bullish market, the potential for substantial valuations of airdropped tokens further amplifies the appeal of staking TIA, drawing in more participants.

The Rise of Modular Paradigm: Transforming the Cryptocurrency Landscape “Modular Era”

Airdrops, characterized by the unsolicited distribution of tokens to blockchain users engaged in network activities, contribute significantly to the overall appeal of the ecosystem. Celestia, functioning as a modular blockchain, unveiled its mainnet beta in October, distributing TIA tokens to an estimated 580,000 users. Initial trading of TIA commenced at around $2.30 on prominent platforms such as Binance and OKX.

Modular blockchains, designed to tackle scalability challenges through specific channels for speed and execution, distinguish themselves from monolithic blockchains. Celestia implements data availability sampling (DAS), a method for verifying all available data on a blockchain, thereby enhancing the speed of data transfer.

The term "modular era," introduced by the Celestia Foundation in a blog post, has gained momentum, almost reaching meme-like status within crypto circles. Numerous posts within the past 24 hours reflect the sentiment that "the future is modular."

Such narratives hold significant weight in the crypto market, often propelling early investors to substantial gains. Notably, in November, a frenzy driven by memecoins on the Solana and Avalanche blockchains resulted in substantial profits for part-time traders. Additionally, the Metis network witnessed over $50 million in inflows in recent weeks, driven by hype surrounding an upcoming grant.

Read More: Marinade Surges to Record Highs as Jito's Token Launch Sparks Intense Competition

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