Chris Burniske, a venture capitalist and former crypto analyst, recently discussed the performance of Celestia (TIA), drawing comparisons to the early market movements of Solana (SOL) in 2020.
According to Burniske, who is now a partner at Placeholder, despite Celestia’sprice correction, similar patterns were observed with Solana, which initially saw a substantial price drop only to later surge by approximately 10,000% in 2021.
Currently, Celestia’s token, TIA, is priced at $9.55, marking a 5.6% decrease from its highest recorded price.
Source Coinmarketcap
This decline has led to concerns and criticisms among investors, especially in light of an upcoming event on October 31 when 17.57% of Celestia’s total token supply will be made available to the market.
This kind of token release can lead to potential selling pressure as more units become available for trading.
Burniske also referenced Solana’s experience, noting that in December 2020, around 80% of Solana’s total supply was released, which was followed by significant price increases.
This historical precedent suggests that while immediate market reactions to token unlocks can be negative, they may precede substantial price gains.
He advised investors to maintain perspective, implying that the ability to endure market downturns without panic selling can potentially lead to significant returns, echoing the price trajectories seen in successful blockchain projects like Solana.
The analysis by Burniske highlights the cyclic nature of crypto markets and the importance of strategic patience in investment decisions.
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