Understanding the TIA Token and Celestia Blockchain
The Celestia blockchain’s native token, TIA, has been making waves in the cryptocurrency world with a market capitalisation of over $US1.3 billion. Despite its impressive ranking in the top 100 coins globally, the token’s value has been on a downward trend recently.
Starting the year at around $US12, TIA reached an all-time high of over $US20 in February but has since dropped to $US6.90 at the time of writing. However, this is still a significant increase from its initial listing price of $US2.08 around 240 days ago, showing a growth of over 200%.
Celestia is a Layer 1 blockchain that aims to simplify the process for developers to launch their own blockchain. By offering a modular design, developers can easily combine existing rollup technology options to create their customised stack. This approach reduces development time and allows for greater flexibility in building independent blockchains.
Founded in 2019 by Mustafa Al-Bassam and Ismail Khoffi, Celestia has attracted substantial venture capital investment, including a $US1.5 million seed round in 2021 and $US55 million raised in 2022. Built on the Cosmos SDK framework, Celestia offers a unique platform for blockchain development.
The TIA token plays a crucial role within the Celestia blockchain ecosystem. Developers use TIA to pay gas fees on transactions and publish data to the network’s data availability layer. Network validators and delegators stake TIA to support consensus activities and earn staking rewards. TIA holders also have governance powers to propose and vote on network parameter changes.
It’s important to note that Celestia’s TIA token should not be confused with the token of the Tiamonds project, which also trades under the TIA symbol. The alternate TIA is a token distributed to owners of tokenised diamonds sold via the Tiamonds platform, claiming to be the world’s largest tokenised diamond marketplace.
As the value of the TIA token continues to fluctuate, investors and developers will be closely monitoring its performance within the Celestia blockchain ecosystem.