The native cryptocurrency of the data availability blockchain Celestia (TIA) is preparing for potential price fluctuations ahead of a major supply event on October 30, which will nearly double the number of tokens in circulation.

Key Points:

• Approximately 175 million previously locked-up TIA, which represents 80% of the current supply, will be released on Wednesday in the largest unlocking since the token's launch last year. This is estimated to be worth around $920 million based on current prices above $5 on exchanges.
• Core contributors are set to receive 58 million TIA tokens valued at $298 million. 65 million tokens will go to early investors from the series A and B funding rounds, while 52 million tokens are allocated for seed investors.

Cryptocurrency projects typically lock some of their tokens and unlock them gradually to avoid a flood of sales from early investors immediately. While unlocking can often lead to price drops, investors sometimes preemptively sell, anticipating the event.

In TIA's situation, prices have already dropped by up to 80% from a peak of $21 in February, settling between $4 and $6 for several months. Funding rates for TIA perpetual futures remain in negative territory, signaling trader expectations of falling prices.

"There could be some pronounced effects," David Shuttleworth, partner at Anagram, noted, pointing out that the number of tokens being unlocked vastly exceeds average daily trading volumes, which range from $50 million to $200 million. "The overall market conditions seem favorable," he added, highlighting that Bitcoin is trading near all-time highs.

As the unlocking date approaches, the chance of TIA surprising the market with a price rally has also increased, according to well-regarded crypto analyst Will Clemente, founder of Reflexivity Research. He noted, "This BTC price action has yet again tilted favor from a bearish outlook towards a possible rally."

With the landscape changing rapidly, investors will be keenly observing how TIA reacts post-unlock.