Venture capitalist Chris Burniske made an important observation regarding the swings and rallies in the cryptocurrency market: He claimed that the Celestia (TIA) token was reminiscent of the performance of Solana (SOL) in 2020. Burniske, a former crypto analyst at ARK Invest and now a partner at Placeholder, said investors who were disappointed that TIA underwent a major correction after a massive rally should consider that SOL has experienced a similar scenario in the past.
This analogy from Burniske seems to be an example of typical price movements in the altcoin market. A new and rapidly rising token or altcoin project can often experience a major correction after reaching a certain point. During this correction, investors hoping for quick gains may become disappointed or even panic. However, noting SOL’s performance in 2020 suggests that such corrections are normal and that there are significant opportunities in the market from a long-term perspective.
It’s important to recognize that short-term price fluctuations are normal, especially when investing in volatile assets like cryptocurrencies. As Burniske notes, some investors may enjoy an uptrend, while others may panic at sudden declines. The analyst said the following for TIA: told:
“We saw a lot of TIA complainants after the token increased ~10x in the market in about 4 months. Most of these complainers don’t know that SOL rose nearly 10x in 2020, then sold off by 80%, and then rose more than 100x in 2021. If you can’t handle downside volatility, you don’t deserve to go up.”
NEWS CONTINUES BELOW
At the time of this writing, TIA is trading at $10.88, down 47% from its all-time high.
A major token unlock for Celestia (TIA) is also planned for October 31 of this year; here 17.57% of the supply will be opened which can be interpreted as a bearish trend considering more of the asset could be sold. But Burniske pointed out that Solana is also going through the massive unlocking process that precedes parabolic runs.
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