The Celestia Crypto Death Spiral Explained: TIA Price Analysis Amid Capitulation

Celestia is under renewed selling pressure. TIA may slump to fresh all-time lows, reversing gains from early 2024. Why is TIA dropping, and what’s behind this death spiral?

TIA, the currency behind Celestia, is falling sharply, trailing some of the best Solana meme coins to buy in June 2025.

The drop in 2025 has been particularly steep. At current rates, TIA risks erasing gains from 2023 and 2024, pushing the token to fresh all-time lows.

Even so, the downturn in Celestia was unexpected, as the platform was once, and still is, considered a cornerstone of the modular blockchain revolution.

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The Rise and Fall of Celestia

Celestia is a modular layer-1 blockchain designed to address the scaling and efficiency limitations of legacy chains like Bitcoin and Ethereum. While dominant, these original chains are slow and expensive.

Celestia tackles scaling and high fees by separating consensus, execution, and data availability. It specializes in data availability and presents it in a way that lowers costs for applications using rollups to scale.

Given what Celestia offers, it was no surprise that it attracted strong support from investors, particularly venture capitalists.

The enthusiasm before TIA began trading was high, and the price surge in late 2023 and early 2024 reflected investors’ confidence in its prospects.

TIA prices soared from around $2 in early November 2023 to $21 in late January 2024. That’s when TIA peaked before slumping for most of 2024.

Although there was a brief rally in late Q4 2024, the sell-off in 2025 reversed these gains, pushing TIA to new 2025 lows.

Celestia is under renewed selling pressure. TIA may slump to fresh all-time lows. Why is TIA dropping, and what's behind this death spiral?

(TIAUSDT)

Sellers show no signs of slowing, and if last week’s trend continues, TIA may slip below $1.5.

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What’s Behind the TIA Death Spiral?

As analysts remain cautious, the death spiral affecting TIA could continue in the coming weeks.

Notably, a series of token unlocks over the past two years has created a mismatch between market cap and price.

We you researching coins to invest, you eventualy find VERY BAD TOKENS….

If u take a look at $TIA, the chart is promising… U could say it can 20x from here, and Celestia is a “famous” name, so it shouldnt just die, it should be a good play, right??

But then u look into… pic.twitter.com/Wm6qYjpddb

— Gusdisa – Crypto + Açai (@GusdisaBR) June 13, 2025

Even with TIA dropping from $21 to current levels, its market cap remains high at nearly $1 billion, about a third of its all-time high. This drop is mainly due to Celestia unlocking tokens en masse.

Supply is expected to increase further, with Celestia set to unlock 40% of its tokens through 2027.

Celestia is under renewed selling pressure. TIA may slump to fresh all-time lows. Why is TIA dropping, and what's behind this death spiral?

(Source)

Due to this rising supply, one analyst believes buying TIA now could be risky, as prices may continue to spiral downward regardless of adoption or key technological advancements, such as the Ginger Upgrade planned for September 2025 or the $100 million ecosystem fund.

Another concern adding pressure on TIA is its branding as a “VC Chain,” a meme causing reputational damage. Often, crypto VCs have been accused of dumping on genuine project supporters.

Polychain invested around $20mil in the Series A&B round of celestia and have already sold over $82 million worth of $TIA just from staking rewards (realized over 4x ROI) before even a single token is unlocked . pic.twitter.com/hWF8qkb6z4

— 360 (@gtx360ti) September 27, 2024

On X, one said even at current prices, Series B investors are still up nearly 100%.

its so interesting that Celestia investors from the series B ($1b valuation) are still nearly 100% up even with this chart

lesson in there https://t.co/Np8Xwjn6E8 pic.twitter.com/wEkyt1JpxR

— hantengri (@0xhantengri) June 14, 2025

Combined with allegations of predatory unlock schedules favoring venture capitalists and insider dumps, TIA could continue selling off.

This gap between Celestia’s vision and current traction is creating division among holders.

celestia’s chart is down bad because they’ve been selling a future that hasn’t arrived yet

when a project launches a token, the market prices the story it’s telling against the traction it’s showing

the bigger the story, the quicker it must make “progress” (explains a lot of… pic.twitter.com/kaSTseKoao

— Austin Marrazza (@realitywarp) June 15, 2025

On X, one observer noted that Celestia has been “selling a dream that’s taking too long to materialize.”

If TIA dumps hard this week, losses in the past two years may push it lower among the next 20 cryptos to explode in 2025.

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