TL;DR
- Celestia’s Ginger update increased its processing capacity by 5 times and reduced costs by 99.6%, establishing itself as an efficient data provider for Ethereum L2 transactions.
- Despite the technical success, TIA’s price has fallen nearly 50% since November, showing bearish signals and low demand.
- Analysts see a potential recovery opportunity if technical indicators stabilize, with a price target of $7.3.
The recent Ginger update of Celestia is a major milestone in the performance of this data availability (DA) platform. With a 5x increase in processing capacity, the network has doubled its data availability, allowing it to handle Ethereum Layer 2 (L2) transactions more efficiently. Celestia positions itself as one of the most scalable and cost-effective DA providers in the market, with fees up to 99.6% lower per megabyte compared to Ethereum.
The Ginger update allowed Celestia to achieve a historic high of 11.85 GB of data processed in a single day, much of which came from EclipseFND, a key user of the network. These figures reflect the platform’s ability to meet the growing demands of the blockchain ecosystem.
Following the recent Ginger upgrade that doubled DA capacity, @Celestia hit a new all time high yesterday – 11.85 gb of data posted, almost entirely from @EclipseFND
Celestia handled 5x the data posted to Ethereum blobs at a 99.6% lower fee per mb of data pic.twitter.com/WPnAH04UD8
— Dan Smith (@smyyguy) December 28, 2024
Despite the technical advancements, the performance of Celestia’s native token, TIA, has not reflected the success of the update. Since its most recent peak in November, when it reached $9.2, TIA’s price has fallen almost 50%, now hovering around $4.3.
This strong correction has reversed the gains made after its last rally, raising concerns among investors. Additionally, indicators such as Chaikin Money Flow (CMF) and the Relative Strength Index (RSI) have shown bearish signals, indicating a decline in demand and an increase in capital outflows in recent days.
The Market Shows No Enthusiasm for Celestia
Sentiment around TIA has also decreased. Social metrics and weighted sentiment have returned to levels similar to those seen before the November rally, suggesting limited short-term market interest. However, some analysts consider that the situation might represent a buying opportunity at a favorable risk-reward moment, provided the current conditions reverse.
The future of the token will largely depend on whether technical indicators stabilize and generate a new bullish momentum. If so, TIA could recover ground and reach a target of $7.3. The Ginger update reaffirms Celestia’s technical strength, although the disconnect between its network performance and the price of its asset remains a challenge to overcome
