Here’s What Celestia (TIA) Price Could Do as Blobspace Demand Starts to Scale

Celestia has gone through a brutal reset. Despite reaching a point close to $21, the TIA price crashed and is now trading at around $0.60. The crash was steep enough to deter traders, more so given the current slow pace of the market.

However, Celestia network activity tells a different story. The protocol continues to process large amounts of data for dozens of rollups, and recent price action suggests selling pressure may finally be slowing down. That sets the stage for a potential rebuild phase.

Why Celestia network activity still matters

Despite the heavy price decline, Celestia remains one of the most active modular data availability layers. In early January alone, the network processed more than 160 GB of data across 56 rollups, including both mainnet and testnet deployments.

This matters because Celestia’s value proposition is not tied to apps or DeFi hype. It is tied to rollups paying for blobspace. 

As more modular chains launch, demand for cheap and reliable data availability becomes more important. That usage may not show up immediately in price, but it strengthens the long-term case.

Read Also: Here Are the Exact Reasons Why Ethereum, Bitcoin, and Crypto Prices Are Up

Scaling blobspace is the core thesis

Celestia main focus for 2026 is scaling blobspace. After increasing block size to 128 MB with the Matcha upgrade, the next step is improving how data moves through the network. The goal is to handle much higher throughput as rollup demand grows.

If Celestia succeeds, more rollups are likely to choose it as their data layer. Since blobspace is paid for in TIA, that creates a direct link between usage and token demand. The risk is execution. Delays or stronger competition from alternatives like EigenDA could slow adoption.

Lazy bridging and cross-chain liquidity

The pre-planned upgrade also includes lazy bridging, which would streamline and make the process of transferring assets between rollups easier and more decentralized. It only adds to Celestia’s existing interoperability with Ethereum, Solana, and Cosmos.

If it works as intended, users would have far less friction in moving liquidity across chains with modularity.

That would not only improve user experience but also position Celestia as a key layer connecting multiple ecosystems. Adoption here depends heavily on rollup growth, but the direction is clear.

Read Also: How Much Will 100,000 Kaspa (KAS) Be Worth in 2027?

Proof of Governance and token supply

One of the more controversial proposals is Proof of Governance. If approved, it would cut TIA’s annual issuance from around 5% to just 0.25%, while introducing token burns tied to governance participation.

Over the long term, lower inflation could tighten supply, especially if network usage increases. In the short term, however, validators may push back due to reduced rewards. How the community balances incentives will play a big role in how this plays out.

Celestia price outlook and key levels

With TIA trading near $0.60, the market appears to be searching for a bottom. The $0.55–$0.60 zone is an important support area. Holding above it keeps the rebound structure intact.

On the upside, the first level to watch is $0.65. A clean break above that could open the door toward $0.90–$1.00, where prior resistance sits. 

If blobspace demand continues to grow and sentiment improves, a stronger recovery toward $1.50 becomes possible later in the year for the Celestia price.

On the downside, losing $0.55 would likely lead to extended sideways movement or another test of lower levels. For now, price is stabilizing, and that alone is a meaningful change after such a steep decline.

Moreover, the Celestia price collapse damaged confidence, but its core thesis has not changed. Rollups still need data availability, and Celestia is one of the few chains built specifically for that role.

If blobspace demand scales as expected and supply dynamics improve, TIA could rebuild value over time. It’s likely to be an uneven recovery, but the foundation leading to a longer-term reset rather than a permanent breakdown is still set.

Read Also: Cardano (ADA) to $10? Here’s Why That Dream Is Failing Right Now

Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.

intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Funbi Afe
Funbi Afe

Funbi Afe is content strategist with a strong background in technical writing, cryptocurrency, journalism, and copy editing. Passionate about simplifying complex topics, Funbi crafts clear, engaging content that informs and inspires diverse audiences. With expertise spanning blockchain technology, SEO strategy, and market analysis, Funbi is dedicated to helping brands and communities deliver impactful, polished messaging in the fast-evolving digital space.

CaptainAltcoin
Logo