Bankless: How long can TIA’s strong performance last under the expectation of airdrops?

Although TIA may face headwinds, it still represents a good opportunity to outperform, driven by Celestia’s momentum.

Original title: “It’s TIA Time”

Written by Jack Inabinet, Bankless

Compiled by: Yvonne, Mars Finance

Despite a lackluster week for cryptocurrency markets, modular data availability layer Celestia continues to rise; TIA is up 39% this week! What’s driving this explosive growth?

Many compare staking TIA with the intention of obtaining airdrops, arguing that versions of this cycle, like (3,3), are game theory-based memes that encourage permanent staking of OHM as the best for all ecosystem participants Strategy.

In the short term, this is very beneficial to TIA, as the promise of future airdrops will lead to increased buying pressure on TIA tokens, and the act of staking tokens will reduce the supply available for sale, causing the price of TIA to increase further.

While the (3,3) nature of Celestia staking has spawned explosive gains, all good things must eventually come to an end when a perpetual cycle of staking turns into holders trying to exit their positions and running into thin liquidity.

With Celestia’s mass unlock planned for October this year and EigenLayer’s data availability solution offering a more cost-effective alternative to Celestia, TIA will undoubtedly face headwinds this year, but in the meantime, ride on Celestia’s growth Momentum is a great way to outperform the market.