[Celestia’s staking yield is 10.7%; is TIA token worth buying? 】
According to StakingRewards, Celestia offers the most attractive staking rewards in the industry. The TIA token has a return rate of 10.7%, which is higher than Ethereum (3.3%), Solana (7%), Avalanche (7.5%), and Tron (4.15%).
The majority of Celestia tokens are staked, with a staked market cap of $4.7 billion and a total market cap of over $6.5 billion. At a 10.7% return rate, investing $10,000 in Celestia will earn a staking return of $1,077, which is approximately $10,770 over ten years.
However, considering only staking returns is not the best way to invest. Total return should be considered, including asset price and yield. For example, if you invest $10,000 to buy Celestia at $20.15 during the peak period, since the token price has dropped by more than 67%, the current value of this investment is only $3,473. Even with the staking return, the total is still less than $4,000.
Additionally, Celestia investors face the challenge of potential dilution in the coming years. More than 267 million TIA tokens have been unlocked, accounting for approximately 25% of the total, but more than 731 million tokens have yet to be unlocked. The unlocking program will end in 2027, with more than 522 million tokens set to be unlocked in November.
Token unlocking is generally bad for cryptocurrencies, leading to increased selling, potentially lower staking returns, and increased market volatility. Celestia prices are also affected by Bitcoin market movements. For example, the TIA token surged in March as Bitcoin hit all-time highs, but has recently fallen as Bitcoin entered a bear market.
Celestia is a leading company providing modular data availability tools that scale with the number of users, allowing anyone to easily launch their own blockchain. Companies using Celestia include Manta Network, Alpha Dune and Astria.
