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ValuationsLayer-1

Celestia - Does it Make Cents?

Kunal Goel, Dustin TeanderJan 19, 2024 ⋅ 8 min read

Key Insights

  • With a market cap of $18 billion, Celestia is now among the top 10 largest cryptoassets by fully diluted market cap.
  • While the network generates low fees, it is not unexpected as it is still very new. Additionally, Celestia fees and blobspace demand will grow as more rollups launch.
  • Celestia TIA is responsible for providing security to its ecosystem. Therefore, the rollups demand for security adds value to TIA.
  • The value of future airdrop for TIA stakers may be in the range of $0.8-$1.6, generating additional yield of 4-9%.

After less than 3 months from its mainnet launch, Celestia now trades at a whopping $18 billion fully-diluted valuation. Its price surge has surprised almost all market participants, including its early investors. With this recent surge, Celestia is now a top ten asset by fully diluted market cap. The question of how the project accrues value must be revisited.

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Kunal Goel
kunalgoel

Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.

Dustin Teander
Saypien_

Dustin was previously the Enterprise research director at Messari. He has a broad focus across crypto with a particular interest in AI x Crypto, Consumer financialization, DeFi, and general infrastructure.

Mentioned Assets
Outline
  • Key Insights
  • Analyst Takes
Authors
Kunal Goel
Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.
Dustin Teander
Dustin was previously the Enterprise research director at Messari. He has a broad focus across crypto with a particular interest in AI x Crypto, Consumer financialization, DeFi, and general infrastructure.
Mentioned Assets