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The altcoin market suffered more short-term losses after the overall market fell over the previous day, with the cryptocurrency market poised to close August on a negative note. As a result, altcoins with similar characteristics as TIA saw large losses across the board.
TIA has lost 23% since last week, according to CoinGecko, making it one of the worst performers since the market’s correction phase started. August proved to be an excellent month for Celestia’s on-chain expansion, even with the token’s poor performance. Right now, the only unanswered question is whether investors believe that these developments will eventually lead to TIA.
OurNetwork Modular Ecosystem Review Reveals Quiet Build-Up On Celestia
The official X account for OurNetwork shared a recent overview of the Modular ecosystem, of which Celestia is a component. It turned up a number of significant findings that demonstrate how the ecosystem has been gaining strength since the beginning of August.
JUST IN: Modularity 🧩 | OurNetwork #266
👥 Sector Update | @ayyyeandy
🟣 @CelestiaOrg | @ofernau
🌀 @OmniFDN | @chasedevens
🦦 @alt_layer | @maqstik
⚡ @conduitxyz | @forrestnorwoodLink to read ⬇️ https://t.co/DyCnBHxLWi
— OurNetwork 🔎 (@ournetwork__) August 30, 2024
The modular crypto industry encountered some opposition because of the chain fragmentation issue, but improvements in chain abstraction by more than 80 teams from various protocols and chains resulted in an improved user experience on-chain, according to OurNetwork’s official blog post.
Celestia is far ahead of the rest of the industry. It demonstrates that 44% of the entire market share of data on data availability providers was obtained by the platform. This demonstrates Celestia’s prominence in the modular industry.
The primary factor driving Celestia’s increase in market share is the platform’s specialty in giving EVM blockchains the infrastructure needed to validate data without downloading whole blocks. Celestia has been pursuing Ethereum’s position in the data availability niche at a steady pace from May 29 to August 28.
Whether the platform replaces Ethereum as the leading data availability layer for EVM blockchains remains to be seen, but investor confidence in Celestia may not be strong enough to support a TIA recovery.
$4.6 Breakthrough Imminent But Rejection’s Still A Possibility
Even though the market sentiment is still flashing bearish, as of this writing, the token is headed for a short-term breakout through the $4.6 ceiling. TIA’s potential breakthrough may be rejected because the market is still recovering from the catastrophic decline.
The relative strength index (RSI) indicates that bullish momentum has slightly decreased, but as market volatility decreases over the next few days, a flip could take place. The strong correlation between TIA and Bitcoin will contribute to the upcoming rally as well. If the market turns bullish later in early or mid-September, we might witness a potential retest of $5 once Bitcoin reaches $60k in the long run.
Featured image from RockX, chart from TradingView