Celestia’s native token, TIA, experienced a nearly 10% decline following a $900 million token unlock event, heightening concerns around token supply and price stability. The large-scale unlock flooded the market with additional tokens, increasing the circulating supply and putting downward pressure on TIA’s value as selling activity spiked.
This unlock is part of a scheduled release, but the impact underscores the sensitivity of token prices to supply surges, particularly in an environment where investor sentiment remains cautious. Token unlock events can often lead to price volatility as early investors or team members seize opportunities to liquidate holdings, affecting the token’s short-term performance.
Market analysts suggest that further price fluctuations may continue as investors digest the influx of new tokens. For Celestia, the challenge lies in maintaining confidence in its long-term vision amid these fluctuations, with attention now on its ability to drive demand for TIA and stabilize its market performance in the face of increased supply.
