- Celestia (TIA) trades at $1.81, down 13% over the past week.
- The altcoin has pared gains after rebounding from a low of $1.32.
- The Celestia Foundation announced it repurchased all remaining TIA from Polychain Capital.
Celestia’s price of $1.81 today reflects a double-digit weekly decline. Although the token has recovered about 38% from its June all-time low of $1.32, it remains down roughly 70% year-to-date and about 91% below its all-time high above $20.90 reached in February 2024.
With the broader crypto market navigating another pullback, the question is whether TIA faces further downside or if the Celestia Foundation’s recent move could spark a renewed recovery.
Celestia Foundation repurchases TIA from Polychain Capital
As TIA’s price slid over the past year, many analysts pointed to aggressive selling by Polychain Capital as a primary driver.
Celestia went from one of the most talked-about tokens at mainnet launch to a notable underperformer. That poor performance over the last year pushed the price far from its prior highs.
One analyst on X described Polychain as among the “most predatory VC tokens.”
In response, the Celestia Foundation announced it purchased Polychain’s remaining TIA holdings. The move effectively reverses a long-standing relationship with the venture firm, which had acquired tokens at prices below or around $1.
Under the agreement, Polychain sold 43,451,616.09 TIA to the Celestia Foundation for $62.5 million. Polychain will soon undelegate its staked holdings to facilitate the transaction.
The Celestia Foundation has worked with Polychain Capital to assign Polychain’s entire remaining TIA holdings to new investors.
This month, the Foundation purchased 43,451,616.09 TIA from Polychain Capital for $62.5m. Polychain will shortly be undelegating their entire staked…
— Celestia 🦣 (@celestia) July 24, 2025
Why is TIA largely bearish?
Despite the Foundation’s repurchase, TIA’s price outlook remains predominantly bearish.
Token unlock schedules will continue to release redistributed tokens into circulation over time. The controlled release is designed to avoid a sudden supply shock, and new recipients of those tokens are expected to avoid repeating the rapid sell-offs associated with Polychain’s earlier activity.
However, if those new holders adopt an aggressive sell strategy or liquidate staking rewards quickly, bearish pressure could persist.
Commenting on TIA’s tokenomics, crypto analyst zeroknowledge posted on X:
“Structural sell pressure is not a side effect — it is literally a core feature of the tokenomics design.”
The analyst added that Polychain invested about $20 million in early rounds and, due to staking reward mechanics, sold over $82 million worth of TIA—realizing roughly 4x returns—before primary tokens were unlocked.
Is that dynamic changing? Market participants note Celestia is restructuring supply and governance mechanisms.
1/ @Celestia restructures token supply & governance model
$62.5M $TIA reallocation from @Polychain and a proposal to slash inflation from 5% to 0.25% signal major changes to long-term incentives. This comes as $TIA trades 67% below 2024 highs. pic.twitter.com/oi9GJtPsEl
— Chaos Labs (@chaos_labs) July 24, 2025
As noted by Chaos Labs, Celestia’s plan extends beyond reallocating Polychain’s reserve. The Foundation has proposed reducing the token inflation rate significantly. Whether these measures will curb selling pressure remains to be seen.
Technical outlook for Celestia price
At the time of writing, TIA was trading around $1.81, with open interest reduced to approximately $197 million.
Technical indicators on the daily chart favor sellers: the RSI has fallen below 50, and the MACD shows a bearish crossover. Those signals suggest downward momentum could continue unless positive catalysts or sustained buying pressure emerge.