Recently, Celestia has announced its integration with Polygon’s Chain Development Kit (CDK), expected to be completed by early 2024.
According to the announcement, this integration will make Celestia an option for data availability within the Polygon CDK software. Notably, transaction fees can be reduced by over 100 times if data storage networks for transactions are compressed on Celestia rather than Ethereum.
Speaking about this integration, Sandeep Nailwal, the co-founder of Polygon, stated: “This is a bandwidth moment for Web3. The ability to deploy high-throughput Ethereum layer 2 supported by ZK, as easily as deploying smart contracts, will make blockchain adoption as high-speed fiber did for Web2.”
The Polygon CDK allows developers to create new blockchain networks, becoming part of the larger Polygon ecosystem. Polygon CDK is currently utilized by platforms like OKX, Astar, Canto, Gnosis Pay, Palm, and IDEX.
In the context of Polygon, some networks based on Polygon, such as zkEVM, are “rollups” that directly store transaction data on the Ethereum network. Other networks, referred to as “validium,” only store verification proofs on Ethereum while keeping compressed transaction data on a separate network. Besides Celestia, Avail is another network that can store transaction data for verification.
It’s worth noting that this integration announcement did not have a significant impact on the price of TIA. At the time of writing, TIA is trading around $11.3.
However, since the token was launched and began trading on exchanges, TIA’s price has experienced significant growth. On December 12th, TIA reached its 2023 peak at $13, up from its low of $2.3.
From a technical analysis perspective, the entire movement of TIA’s price is contained within an ascending parallel channel. Both the channel’s resistance and support lines have been validated multiple times.
Specifically, after bouncing off the channel’s support line on November 27th (green symbol), TIA saw a substantial increase and reached a new all-time high at $13. The highest point is situated at the channel’s resistance line (red symbol).
Some cryptocurrency analysts have noted the significant increase for TIA. CryptoGodJohn likened this trend to Solana (SOL), stating: “$TIA gives off a $SOL early 2021 vibe before it went parabolic.”