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Data Availability Blockchain Network Celestia’s Native Cryptocurrency TIA Surges 25%
Discover the latest surge in TIA, the native cryptocurrency of Celestia’s Data Availability Blockchain Network, as it surges by 25%. Stay updated on the latest developments in the crypto space.
Celestia’s native cryptocurrency TIA has seen a remarkable 25% surge this week, reaching $7.30. This surge marks the best performance among the top 100 digital assets by market value. Despite this positive movement, traders are displaying skepticism and are leaning towards bearish bets by shorting perpetual futures linked to the cryptocurrency, as indicated by the funding rates monitored by CoinGlass.
Bearish Bias and Funding Rates
The average funding rates across exchanges have turned negative, currently standing at -0.1231% after hitting levels last observed in January. This negative funding rate signifies that traders with short positions are paying a funding fee to longs, indicating a strong preference for bearish bets over bullish ones. This shift towards short positions during a price rally could be attributed to recency bias, where recent price crashes overshadow other significant developments.
Celestia’s Role in Data Availability and Web3 Trading
Despite the recent bearish sentiment, traders might be underestimating Celestia’s role as a data availability layer for layer 2 networks, such as the thriving permissionless liquidity layer for Web3 trading called Orderly Network. Celestia functions as a storage system for data utilized by rollups and layer 2 networks, enhancing speed and transaction capacity.
Orderly Network, built on top of the Near blockchain, leverages Celestia for data availability. The network recently achieved a record cumulative trading volume of $6.2 billion on July 5, with net fees surpassing $6.6 million. Notably, Orderly Network accounts for 40% of the total data posted on the Celestia network.
Potential for Sustainable Price Growth
While the bias towards short positions persists, it could paradoxically fuel further price increases. Traders holding short positions will face increasing burdens from funding fees if prices remain resilient, potentially leading to a short squeeze rally that drives prices higher.