• TIA faces a significant token unlock on October 31, which could cause supply concerns without matching demand growth.
• The circulating supply of TIA will increase by 390% by next year, raising questions about market stability.

The Celestia token (TIA) is experiencing severe market volatility since a large-scale token unlock is on the horizon. While the coin has dropped by 80% from its all-time high (ATH), it still has a valuation that is double its initial listing price.

However, as October 31 approaches, there are growing concerns about the potential impact of a large unlock on TIA’s pricing and market position. Token Unlocks, a well-known market analytics tool, has shared these upcoming events, creating discussion in the crypto world.

TIA Market Cap Highlights Concerns Over Unlocked Tokens 

According to the most recent data, TIA’s circulating market cap is around $870 million, representing only 20% of its total supply. When the completely diluted market cap is taken into account, which includes the total number of tokens that have yet to be unlocked, the figure rises to an astonishing $4.4 billion.

The significant gap between these two metrics highlights the enormous number of tokens that have yet to be issued into circulation, raising concerns about the impact of a rapid surge in supply on TIA’s value.

On October 31, a stunning 175 million TIA tokens, or around 16.5% of the total supply, will be released. Following that, beginning November 1, 1 million tokens will be unlocked every day, raising the total amount of tokens on the market.

By next year, TIA’s available token supply will have increased by roughly 390 percent. If demand for the Celestia token does not rise in tandem with growing production, prices may fall as surplus supply floods the market, resulting in lower demand.

In response to these worries, the TIA community is actively monitoring whether the token can endure these challenges. Historically, big token unlocks have posed issues for digital assets because the abrupt increase in supply can induce investor anxiety.

If the market fails to adjust, TIA price could fall significantly. Market conditions in the upcoming months will determine whether TIA can survive this potential crisis or endure a protracted downturn.

Parallel to these improvements, the Celestia network, which serves as the foundation for TIA, has seen some positive technological advancements. Earlier in August, CNF reported the release of the Lemongrass upgrade, which included many enhancements designed to improve user interactions within the ecosystem.

These included one-click TIA interaction, Interchain accounts, and a novel upgrading process. Following the upgrading of the Arabica Devnet, this upgrade enabled the activation of the Mocha Testnet and Mainnet Beta.

While these technical improvements may boost TIA’s overall utility and adoption, the timing of the token unlock raises questions about whether these upgrades will be sufficient to mitigate the downward pressures created by increasing token supply.

At the time of writing, the TIA price is $4.20, up 1.96% over the last 24 hours, bringing its market cap to over $881.17 million.