Celestia (TIA) Token Unlock Scheduled for Oct. 30 as Market Cap Sinks 23%

TIA, the native token of data availability network Celestia, has been the second-worst performer among the top 100 cryptocurrencies by market cap over the past seven days

The native token of data availability network Celestia, TIA, has been among the worst performers in the top 100 cryptocurrencies by market capitalization over the past seven days, ahead of a $853 million token unlock scheduled for Oct. 30.

TIA has dropped about 23% from $6.24 on Sept. 25 to $4.86 at press time, giving it a market capitalization of just over $1 billion and a fully diluted valuation (FDV) of $5.2 billion, according to CoinGecko. Only data storage platform Arweave’s AR and identity protocol Worldcoin’s WLD tokens have performed worse among the top 100 over that time period. FDV refers to the theoretical market cap of a token if its entire supply is unlocked and in circulation.

The sharp price decline of TIA comes less than a month before 175.56 million tokens will be unlocked, which is about 82% of the current circulating supply, according to data from crypto research firm Messari. At current prices, the unlock at the end of the month is valued at $853 million.

Given the size of the unlock plus the latest $100 million funding round announced last week, Ian Unsworth, the co-founder of crypto research firm Kairos, told Unchained he thinks that investors are likely to have made money. Unsworth also said he expects volatility on the day of the unlock.

Sixty-five million TIA tokens (worth about $311 million) have been allocated to participants in Celestia’s Series A and B rounds, while $278 million was earmarked for initial core contributors. The remaining $251 million has been dedicated to seed round backers, according to Messari.

Spokespeople from Bain Capital Crypto and Galaxy did not respond to requests for comment for this story. However, a 2022 announcement from the Celestia Foundation stated that Bain Capital Crypto and Polychain Capital led the Series A and B rounds, with Placeholder, Galaxy, and Jump Crypto participating in both.

The upcoming event is the start of monthly unlocks that will continue over the next three years, according to Messari.

Developers who use the Celestia network pay transaction fees denominated in TIA. Users can also delegate their TIA to a validator for a portion of the validator’s staking rewards, according to the protocol’s documentation. Additionally, stakers of TIA are granted rights vote on governance proposals that can change the network’s parameters.

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