The recent upgrade in Celestia’s [TIA] Ginger technology has effectively doubled data availability, ensuring smoother processing of Ethereum [ETH] L2 transactions.
An analysis by Blockworks researcher Dan Smith reveals that Celestia experienced a 5x increase in throughput following the upgrade. According to Smith,
“Celestia achieved a new record yesterday by posting 11.85 gb of data, with most of it originating from EclipseFND. The platform managed a 5x increase in data compared to Ethereum blobs while keeping fees per MB of data 99.6% lower.”
Impact on TIA Price
For those unfamiliar, Celestia’s data availability (DA) plays a crucial role in offering a scalable solution for storing and verifying transaction data off-chain for L2 transactions.
Additionally, Celestia currently stands out as the most cost-effective DA provider for ETH L2 transactions.
Smith suggests that the combination of low costs and high throughput could position Celestia as the preferred DA platform for various L2 transactions.
Despite the positive developments, TIA, the native token of Celestia, exhibited bearish signals both on-chain and on the price charts.
Social traction and Weighted Sentiment for TIA dropped to levels not seen since before the significant rally in November. This signifies waning market interest and a bearish sentiment that might hinder a swift recovery in the short term.
Nevertheless, could this subdued sentiment present an appealing risk-reward opportunity for buyers?
On the price charts, TIA has dropped by almost 50% from its recent peak, erasing all gains made in November. The token plummeted from $9.2 to $4.3 before momentarily stabilizing within the previous range.
However, bearish signals from the daily RSI chart and the declining movement of the CMF (Chaikin Money Flow) indicate a lack of demand and an increase in capital outflows over the past few days.
Unless there is a reversal in the technical chart indicators, TIA might breach the mid-range and continue its descent towards the lower thresholds of the range.
Conversely, a bullish breakout from the current range could set a target of $7.3, potentially yielding a 60% gain.