Latest Celestia (TIA) News Update

By CMC AI
07 September 2025 12:20AM (UTC+0)

What is the latest news on TIA?

TLDR

Celestia navigates regulatory nods and liquidity shifts while battling tokenomics headwinds. Here’s the latest:

  1. Indonesia Legalizes TIA (1 September 2025) – TIA joins Indonesia’s approved crypto list, boosting accessibility.

  2. BYDFi Lists TIA Perpetuals (28 August 2025) – New derivatives trading pairs signal institutional interest.

  3. Polychain Exits $62.5M Stake (24 July 2025) – Foundation redistributes tokens to curb sell pressure.


Deep Dive

1. Indonesia Legalizes TIA (1 September 2025)

Overview:
Indonesia’s Financial Services Authority (OJK) added TIA to its list of 1,444 legal cryptocurrencies, enabling regulated trading on platforms like PT Central Finansial X. Criteria included market cap, tech innovation (e.g., modular blockchain design), and security audits.

What this means:
This is bullish for TIA’s adoption in Southeast Asia’s third-largest economy, potentially increasing retail and institutional demand. However, strict compliance requirements may limit short-term liquidity spikes. (Indodax)


2. BYDFi Lists TIA Perpetuals (28 August 2025)

Overview:
BYDFi launched TIAUSDC perpetual contracts with 75x leverage, expanding TIA’s derivatives market presence. The move follows similar listings on WEEX and BitDelta.

What this means:
Enhanced trading flexibility could attract speculative capital, but high leverage risks amplifying volatility. Traders should monitor open interest (up 25% MoM) for sentiment cues. (BYDFi)


3. Polychain Exits $62.5M Stake (24 July 2025)

Overview:
Polychain Capital sold its remaining 43.45M TIA ($1.44/token) to the Celestia Foundation, which will reallocate tokens via phased unlocks until November.

What this means:
While this reduces concentrated sell risk, the gradual release (344K tokens/day post-August) maintains dilution pressure. The Foundation’s control over redistribution may stabilize governance but raises decentralization concerns. (The Block)


Conclusion

Celestia’s regulatory wins and market infrastructure growth contrast with lingering supply overhangs from unlocks. While Indonesia’s approval and derivatives traction suggest bullish momentum, the token’s 90% drop from its 2024 peak underscores fragile sentiment. Will the Lotus upgrade’s staking reforms and Hyperlane integration finally align incentives for long-term holders?

What are people saying about TIA?

TLDR

TIA's community is split between technical traders eyeing key levels and long-term holders questioning fundamentals. Here’s what’s trending:

  1. Bearish TA: Failed $3 resistance sparks sell-off fears

  2. Insider moves: Polychain’s $62.5M exit raises eyebrows

  3. Tokenomics deep dive: Daily unlocks vs founder’s hacker past

  4. Upgrade duality: Lotus testnet hype vs collapsing DeFi activity

Deep Dive

1. @CoinMarketCap: Rejection at $3 triggers bearish pivot

"TIA broke below 20-day SMA ($2.60) with 7% weekly drop – bears target $2.50 next"
– @CoinMarketCap (3.2M followers · 45k impressions · 2025-05-02 16:06 UTC)
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What this means: Bearish for TIA because breakdowns below key moving averages often precede extended downtrends, especially with spot volume down 36% this week.

2. @kerimcalender: Unlock schedule under microscope

"995k TIA unlock daily until August → 344k/day after. Founder sold ChainSpace to Facebook pre-crypto boom"
– @kerimcalender (8.3k followers · 12k impressions · 2025-09-06 13:17 UTC)
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What this means: Mixed for TIA – reduced future unlocks could ease selling pressure, but founder’s unconventional background adds narrative risk.

3. @CoinMarketCap: Lotus upgrade fails to inspire

"TIA TVL dropped 95% to $2.3M despite testnet launch. Polychain sold $242M since TGE"
– @CoinMarketCap (3.2M followers · 28k impressions · 2025-07-07 10:09 UTC)
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What this means: Bearish for TIA because network activity (daily fees: $200) doesn’t justify $1.12B valuation, despite protocol improvements.

4. @CoinMarketCap: VC exit strategy questioned

"Polychain sells remaining stake at $1.44/TIA – 44% below seed round pricing"
– @CoinMarketCap (3.2M followers · 18k impressions · 2025-07-24 18:51 UTC)
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What this means: Bearish for TIA because large investor exits suggest fading institutional confidence, though foundation buyback limits immediate supply shock.

Conclusion

The consensus on TIA is bearish, with technicals, on-chain metrics, and investor exits converging. While the Lotus upgrade and reduced token unlocks offer glimmers of hope, these catalysts lack accompanying demand signals. Watch the Mocha testnet → Mainnet transition in late September – successful adoption could reactivate modular blockchain narratives, but current RSI (47) suggests limited buying urgency.

What is the latest update in TIA’s codebase?

TLDR

Celestia’s codebase has seen major protocol upgrades and governance proposals aimed at enhancing interoperability and tokenomics.

  1. Hyperlane Integration (24 May 2025) – Enabled cross-chain TIA transfers via Cosmos SDK.

  2. Proof-of-Governance Proposal (23 June 2025) – Proposed slashing token issuance from 5% to 0.25%.

  3. Lotus Upgrade Testnet (7 July 2025) – Launched on Mocha testnet with inflation reduction mechanics.

Deep Dive

1. Hyperlane Integration (24 May 2025)

Overview: Celestia integrated Hyperlane as its native interoperability solution, allowing TIA to move seamlessly across Ethereum, Solana, and other chains.

This upgrade uses Hyperlane’s Cosmos SDK module to standardize cross-chain communication. Developers can now deploy rollups on Celestia that interact natively with external ecosystems, reducing fragmentation.

What this means: This is bullish for TIA because it expands utility beyond Celestia’s ecosystem, potentially attracting more developers and liquidity. Users benefit from cheaper cross-chain transactions.
(Source)

2. Proof-of-Governance Proposal (23 June 2025)

Overview: Co-founder John Adler proposed reducing annual token issuance by 95% (5% → 0.25%) to curb inflation and align rewards with network demand.

The change would eliminate reliance on liquid staking tokens (LSTs) by letting governance participants directly control inflation. It also introduces fee burns tied to data availability revenue.

What this means: This is neutral-to-bullish for TIA. Lower inflation could boost token scarcity, but success depends on governance participation and revenue growth from network usage.
(Source)

3. Lotus Upgrade Testnet (7 July 2025)

Overview: The Lotus upgrade went live on the Mocha testnet, introducing revised staking mechanics and preparing for mainnet deployment.

Key features include dynamic inflation adjustments (based on staking rates) and enhanced validator incentives. The upgrade also optimized blob data processing for rollups, cutting latency by ~15%.

What this means: This is bullish for TIA if mainnet adoption follows, as it could stabilize tokenomics and attract more rollup deployments. Stakers may see more predictable rewards.
(Source)

Conclusion

Celestia’s codebase updates focus on interoperability, sustainable tokenomics, and scalability. The Hyperlane integration and Lotus upgrade position TIA as a modular blockchain contender, while governance reforms aim to address inflation concerns. Will reduced issuance counterbalance weak on-chain activity?

What is next on TIA’s roadmap?

TLDR

Celestia’s development continues with these milestones:

  1. Lotus Upgrade (Q3 2025) – Hyperlane integration for cross-chain interoperability.

  2. Inflation Reduction Proposal (Q4 2025) – Governance vote to cut TIA issuance by 95%.

  3. Mamo-1 Testnet Expansion (2026) – Scaling to 128 MB blocks for higher throughput.


Deep Dive

1. Lotus Upgrade (Q3 2025)

Overview:
The Lotus upgrade, currently live on the Mocha testnet, integrates Hyperlane’s interoperability protocol. This enables TIA to function natively across Ethereum, Solana, and Cosmos chains. Mainnet Beta deployment is expected in late Q3 2025.

What this means:
This is bullish for TIA because cross-chain functionality could expand Celestia’s use cases in DeFi and rollup ecosystems. However, technical risks during the transition to mainnet could temporarily impact network stability.

2. Inflation Reduction Proposal (Q4 2025)

Overview:
A governance proposal aims to slash TIA’s annual issuance from 5% to 0.25% and introduce a fee-burn mechanism (Celestia Blog). If passed, net token supply could turn deflationary by early 2026.

What this means:
This is bullish for TIA’s valuation by reducing sell pressure from staking rewards. However, lower yields might disincentivize short-term stakers, potentially decreasing network security.

3. Mamo-1 Testnet Expansion (2026)

Overview:
Celestia’s Mamo-1 testnet now supports 128 MB blocks (up from 8 MB), achieving 21.33 MB/s throughput. Mainnet implementation is slated for 2026, targeting enterprise-grade scalability for data-heavy chains like AI rollups.

What this means:
This is neutral-to-bullish as higher throughput strengthens Celestia’s modular blockchain value proposition. However, adoption depends on developer uptake and competing solutions like EigenDA.


Conclusion

Celestia’s roadmap prioritizes interoperability, tokenomics sustainability, and scalability. While upgrades like Lotus and inflation cuts could drive demand, execution risks and market sentiment toward modular blockchains remain critical variables. Will reduced issuance offset ongoing unlocks from early investors? Monitoring governance participation and blobspace usage will be key.

CMC AI can make mistakes. Not financial advice.