Staking TIA on native platforms is proving lucrative for users, offering returns between 15% to 17%, minus fees, and sparking increased demand for the cryptocurrency.
In the last 24 hours, Celestia’s TIA token surged by over 22%, defying the subdued market trend. The uptick in investor interest in staking TIA coincides with the growing excitement surrounding the blockchain’s underlying technology.
During the early Asian morning hours on Friday, TIA was trading just under $17 before experiencing a slight pullback. CoinGecko data reveals nearly $800 million in trading volumes over the past 24 hours, marking its highest volume to date.
Staking TIA on native platforms involves locking coins in the cryptocurrency network to earn rewards, with annual yields ranging between 15% to 17%, excluding fees. This notably high yield, compared to the U.S. risk-free rate of 4% offered by the U.S. 10-year Treasury note, is driving demand for the cryptocurrency. As of Friday, TIA’s market capitalization is just under $2 billion, suggesting potential profitability for participants as valuations may further increase in a bullish market.
Anticipation also surrounds potential airdrops for stakers from projects developing on the Celestia blockchain. Recently, the multi-layer blockchain protocol Dymension distributed its DYM tokens through airdrops, benefiting TIA stakers. In a bull market, the substantial valuations of airdropped tokens contribute to the appeal of staking TIA.
Airdrops involve the spontaneous distribution of tokens to blockchain users engaged in network activities or using native applications.
Celestia, a modular blockchain, unveiled its mainnet beta in October, distributing TIA tokens to approximately 580,000 users. Initial trading commenced at around $2.30 on platforms like Binance and OKX.
Modular blockchains address scalability concerns by employing specific channels for speed and execution, distinguishing them from monolithic blockchains that can only scale at the expense of decentralization or security.
Celestia employs data availability sampling (DAS), a method for verifying all available data on a blockchain. This combination enhances the speed of data transfer.
In a blog post, the Celestia Foundation, supporting development on the network, declared, “It’s the start of a new era: The modular era.”
