Surprisingly, Celestia's TIA token has increased significantly by over 22% in the last 24 hours.
Celestia's TIA Token Soars 22% as Staking and 'Modular' Blockchain Talk Draws Investors
CoinGecko data shows that TIA recorded approximately $800 million in trading volume in the last 24 hours, reaching its highest trading volume to date.
Staking, a process that involves locking coins in a cryptocurrency network in exchange for rewards, has become a major attraction for investors.
Staking TIA on local platforms offers an annual return of 15% to 17% before fees. This unusually high yield, compared to the 4% risk-free interest rate offered by the US 10-year Treasury bond, appears to be driving demand for the cryptocurrency.
There are also expectations of future airdrops to stakers from projects being developed on the Celestia blockchain.
In a bull market, the potentially high values of airdropped tokens mean that participants can make significant gains simply by staking TIA, possibly adding to its current appeal.
Celestia, the so-called modular blockchain, launched its mainnet beta in October and issued TIA tokens to an estimated 580,000 users. The first transaction started at around $2.30 on exchanges such as Binance and OKX.
At the time of this writing, TIA was trading at $16.94.
*This is not investment advice.