Celestia’s Tokenomics: Exploring TIA Cryptocurrency
The Celestia cryptocurrency (TIA) has been performing exceptionally well in the market, thanks to its innovative tokenomics. The currency was launched through an airdrop in October 2023 and has gained popularity in the blockchain industry.
Unlike many cryptocurrencies distributed through airdrops, Celestia’s tokenomics have prevented excessive inflation and initial downturns. The project team carefully designed the token allocation to stimulate the market.
Upon closer inspection, the initial distribution of TIA tokens was as follows:
- 26.8% reserved for research and development
- 20% for public distribution
- 19.7% allocated to project supporters (series A&B)
- 17.6% reserved for Celestia Labs members
- 15.9% for project supporters (seed)
The maximum supply of TIA tokens is set at 1 billion, with a gradual increase in circulating supply over time. Currently, there are approximately 157,701.06 circulating coins, which is around 15.7% of the total supply.
During the first year of its existence, the circulating supply will reach 25%, with an estimated inflation rate of 8%. This unique tokenomics mechanism encourages price increases in the early stages of Celestia’s cryptocurrency.
Unlocking Tokens and Potential Impact on Price
In October 2024, the vesting period for airdropped tokens will begin, potentially impacting TIA’s price. Only a portion of the airdropped coins were immediately unlocked, while others will be unlocked gradually over the next few years.
From October 2024, the circulating supply of TIA will double from 250 million tokens to nearly 500 million. In 2025, the circulation is expected to increase to 750 thousand tokens and continue to gradually increase until it reaches the maximum supply.
As October approaches, there may be a possibility of a drop in TIA’s value as investors start pricing in the potential sales of locked tokens. However, if the cryptocurrency can withstand this pressure, it could conclude its first year with excellent performance.
Short-Term Trend and Price Analysis
In terms of short-term trends, Celestia’s cryptocurrency has shown a strong bullish movement. The price has reached $20 for the first time, surpassing a market capitalization of $3 billion.
The quotes remain firm above the EMA 50 on the 4-hour timeframe, indicating a strong bullish trend. Despite a small divergence in the RSI indicator, an upward movement is still possible.
If the recent drop does not break the local support of $18, another bullish breakout can be expected. The performance of Bitcoin may influence TIA’s price action, but so far, it has shown independence from Bitcoin’s performance.
The tokenomics of Celestia will likely come into play as summer approaches. Expect another few months of excitement for the cryptocurrency and its ecosystem.
Hot Take: Celestia’s Tokenomics Driving Success
Celestia’s innovative tokenomics have contributed to its remarkable success in the market. By carefully designing token allocation and gradually increasing circulating supply, the project team has stimulated price increases in the early stages of TIA’s existence.
The upcoming unlocking of airdropped tokens may impact TIA’s price in the short term. However, if the cryptocurrency can withstand this pressure, it has the potential to conclude its first year with excellent performance.
Overall, Celestia’s cryptocurrency and its cryptographic ecosystem continue to generate excitement in the market. With strong bullish trends and a unique tokenomics mechanism, TIA is poised for further growth and success.
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