Celestia's Ginger upgrade boosts throughput by 5 times: Will TIA's price take off as a result?

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Despite Celestia's impressive Ginger upgrade, which enhanced throughput and data availability, the price of its native token TIA has still performed poorly, drawing widespread attention from investors.

Highlights of the Ginger upgrade

The recently completed Ginger upgrade by Celestia brought significant technical improvements to data availability (DA):

Throughput increased by 5 times, reaching an all-time high.

Data publishing volume reached 11.85 GB, primarily from EclipseFND.

Data processing costs decreased by 99.6%, making it the most cost-effective DA platform for Ethereum L2 transactions.

Blockworks research analyst Dan Smith stated that these improvements will solidify Celestia's leading position in the DA market and attract more L2 projects to adopt its technology.

Why is TIA's market performance sluggish?

Despite significant technical advancements, TIA's market performance has not reflected these achievements. The following factors may have contributed to the price slump:

Weak market sentiment:

Social influence and weighted sentiment have fallen back to the lows seen before the surge in November.

Market interest is declining, and investor confidence is low.

Significant price retracement:

After a recent peak of $9.2, the price has retraced nearly 50% and is currently hovering around $4.3.

Technical indicators are bearish: RSI shows weakness, and CMF indicates capital outflow.

Macroeconomic and industry uncertainty:

The broader cryptocurrency market environment may be suppressing investor demand for TIA.

Outlook: Risks and Opportunities

Bearish scenario:

If market sentiment and capital flows remain sluggish, TIA may fall below the current support level, further retracing to the channel low.

Bullish scenario:

If the market regains confidence and accumulates momentum, TIA is expected to break through the current range again, targeting a price of $7.3 for a potential gain of about 60%.

Conclusion:

Celestia's technological advancements lay the foundation for long-term value, but the market still needs to overcome emotional and demand deficiencies in the short term. For risk-tolerant investors, now may be a buying opportunity to assess TIA's potential, but caution is advised regarding changes in market sentiment and the performance of key technical support levels.

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