In an analysis shared on X, Taran Sabharwal, CEO of Stix—a leading OTC trading platform specializing in liquidity solutions for private crypto transactions—provided insights into the upcoming unlock dynamics of the Celestia (TIA) token scheduled for October 31, 2024. His assessment suggests that the market may be underestimating the potential impact on TIA’s price action heading into November.
Why Celestia (TIA) Could Be A Buy“TIA – an OTC story,” Sabharwal began. “We used on-chain data (via @celenium_io API) to judge exactly how the unlock dynamics may shape TIA’s PA going into Nov. The results are in the table above. We’ve summarized that a total of 92.3M TIA will be liquid post unlock, which would act as the upper bound of overall spot selling pressure.”
Interestingly, this figure accounts for less than 50% of the total cliff unlocks, suggesting that the actual sell pressure may be only half of what the market has been anticipating. Sabharwal highlighted that the real increase in circulating supply compared to the current supply indicates a 41.8% dilution.
A significant factor in this dynamic is the activity of OTC buyers who acquired large amounts of the initial unlock and hedged on perpetual futures, causing open interest to surge in recent months. “We expect many of these shorts to continue winding down, partially negating the spot-selling pressure,” he explained. This unwinding could serve as a bullish signal for spot buyers due to the potential reset in funding rates.
Sabharwal’s analysis included several key assumptions. OTC round buyers possess an 11 million TIA cliff unlock, included in the non-staked token category since these tokens originated from treasury wallets not tagged on the blockchain explorer. His team mapped a total of 292 vesting wallets but acknowledged some gaps, which were also included in the non-staked category.
Reflecting on TIA’s OTC history on Stix, Sabharwal observed that Celestia has been one of the most actively traded assets in the OTC market this cycle. Early in the cycle, it offered an attractive opportunity for directional buyers, while sellers were eager to realize large unrealized profits without expecting an imminent bull market in Q3 2023.
He continued: “In Q1 2024, the bull had matured and TIA rallied to $20+. OTC activity was minimal here as sellers didn’t want to take larger discounts (40+%) and buyers didn’t want to bid higher than the $8.5 ceiling. We saw almost no activity as sellers were ‘feeling’ rich and wanted to stay risk-on, despite having the opportunity to realize 100-800x on their investments.”
The dynamics shifted when TIA fell below $5. This was around the time when the Celestia Foundation started raising its OTC round of $100M at $3. “The vesting for buyers was the same as those of private investors—33% unlock on Oct 31 2024 (
