Staking has become increasingly popular among investors looking to earn rewards from locking up their coins in a crypto network.
Demand for Celestia’s TIA token is currently on the high side, causing its price to surge more than 22% in the past 24 hours. That is even more impressive considering that the prevalent trend in the broader market is a dull one. As of publication, CoinMarketCap data shows TIA trading at $16.85, recording about $857 million in trading volumes in the past 24 hours.
TIA’s growing demand, however, may be associated with factors including growing investor interest in staking and the buzz around the underlying technology of the Celestia blockchain.
What Is the Hype about Celestia’s TIA Token?
As previously mentioned, staking has become increasingly popular among investors looking to earn rewards from locking up their coins in a crypto network. These rewards or yields differ from coin to coin. However, users who stake TIA on native platforms can earn yields up to 15% to 17% annually, after charges.
In comparison, the yields are leagues apart from the US 10-year Treasury note, which only offers a rate of 4%.
Another major reason behind the buzz that the TIA token currently enjoys is the ‘Modular’ technology that the Celestia blockchain rolled out in October. Unlike monolithic blockchains, modular blockchains attempt to work out issues bordering on scalability. While monolithic blockchains have to throw caution to the wind if they are to scale, modular does not have to. That is, it still considers decentralization and security. They ensure this by designating specific channels for transactions to be carried out at lightning speed.
In a statement, at the time of rollout, Celestia said “It’s the start of a new era, the modular era.” The announcement has since gained traction and continues to be used even as a meme in the crypto community. So much so, that many X posts over the past 24 hours continue to echo “the future is modular.”
During the October rollout, Celestia issued TIA tokens to about 580,000 users. At the time, the token began trading on popular exchanges such as Binance and OKX, at around $2.30. This means that the token has surged by over 630% in less than three months.
Celestia also uses a tool called data availability sampling (DAS). This is a way for the network to verify all data that is available on the blockchain. With the DAS tool, data transfer is also carried out effectively and with good speed.