It's TIA Time
TIA’s Time. Modular data availability layer Celestia continued to pump in spite of the flat week for broader crypto markets; TIA is up 39% on the week! What narrative is fueling the explosion?
Many are equating the practice of staking TIA with the intent of farming airdrops as this cycle’s version of (3,3), a game theory-based meme which encouraged perpetual OHM staking as the most beneficial strategy for all ecosystem participants.
In the short term, this will be highly beneficial for TIA, as the promise of future airdrops will lead to increased buy pressure on TIA tokens while the action of staking them will reduce the supply available to be sold, leading to further upside in TIA’s price.
But what makes this the (3,3) of this cycle? Here's the progression:
— Taiki Maeda (@TaikiMaeda2) January 13, 2024
1) Market sees big airdrops (i.e. $DYM)
2) Market expects more airdrops
3) People dream about the size of these airdrops
4) Buyers become more and more price insensitive because of airdrop expectations
While the (3,3) nature of Celestia’s staking has spawned an explosive run-up, all good things will eventually come to an end when the perpetual cycle of staking turns into bag holders attempting to exit their positions into thin liquidity.
With massive Celestia unlocks scheduled for October of this year and EigenLayer’s data availability solution poised to provide a more cost-effective alternative to Celestia’s, TIA will undoubtedly face headwinds this year, but in the meantime, riding Celestia’s wave of momentum is an excellent way to position yourself to outperform the market.
(3,3) always ends in (-3,-3) eventually, lack of momentum, liquidity exhaustion, and unlocks will def all be contributors to the latter. But in the meantime, while the momentum is still hot, we ride
— Westie 🟪 (@WestieCapital) January 15, 2024