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Messari Analysts Bullish on Celestia; Says it has no Close Comparables

Published 20/01/2024, 09:27
Messari Analysts Bullish on Celestia; Says it has no Close Comparables

Coin Edition -

  • Messari analysts highlight strides on Celestia and potential growth drivers.
  • Rollup blockchains on the network are expected to be the primary fee drivers.
  • The analysts said the market is pricing Celestia for high growth, and it may deliver on its expectations.

Amidst a sporadic rise that sent TIA to a new all-time high, analysts at cryptocurrency research firm Messari suggest Celestia Network may see further growth as activities and projects on the platform increase.

In a post on social media platform X (formerly Twitter), Messari senior research analyst Kunal Goel explained the factors that have spurred growth on the network. Firstly, Goel highlighted that Celestia has very low fees compared to networks offering similar services. However, the analyst stated that the primary fee drivers will be layer-2 rollup blockchains on Celestia.

However, the analysts argue that the demand for security is much more relevant for Celestia than its fees. Already, the analysts noted that the demand for security on the blockchain is high, driven mainly by activities on the Manta Network.

So far, Manta is the only rollup that has launched on Celestia. As noted in the report, more layer-2 blockchains are expected to come in a few weeks. That includes rollups such as Dymension and Saga.

“Currently, TIA has the lowest Largest Application Multiple among top smart contract platforms (lower is better),” the report noted. Furthermore, the analysts pointed out incentives for stakers on the platform as a growth driver.

With future airdrops expected, the analyst estimate that TIA stakers will see airdrops worth $0.8 to $1.6. The analysts explained that the airdrop calculation is based on Dymension’s airdrop and its pre-listing valuation.

Celestia, which launched its mainnet beta barely three months ago, has seen considerable success since then. In particular, staking and airdrop activities have raised interest in the network.

According to the Messari report, the blockchain, which is a modular data availability network for rollups, has no close comparables. “The market is pricing Celestia for high growth, and it may deliver on its expectations,” the analyst concluded.

Since the TIA airdrop in October, the token has risen multiplefold. Data from CoinMarketCap shows TIA is up 727% and currently sells at $17.39. Despite the Bitcoin-led market volatility, the token continues to defy the pressure. Presently, Celestia has a market cap of around $2.7 billion.

The post Messari Analysts Bullish on Celestia; Says it has no Close Comparables appeared first on Coin Edition.

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