Celestia Matcha Upgrade: 16x Throughput & Halved Inflation
Celestia’s Matcha upgrade, activated on November 25, 2025, expands network capacity by raising max block size from 8 MB to 128 MB. This delivers a 16x boost in data availability throughput and reduces network congestion. The update halves annual TIA token inflation from 5% to 2.5%, increasing scarcity. It also lifts bridge restrictions for non-TIA assets, enhancing cross-chain interoperability. Improved data propagation lowers gas fees and accelerates transactions. In Matcha upgrade’s first 24 hours, the TIA token gained about 6%, trading near $0.65. Developers gain extra capacity for complex dApps, while users enjoy smoother, faster interactions. Celestia solidifies its role as a scalable, cross-chain infrastructure layer.
Bullish
By raising block size to 128 MB and boosting throughput, the Matcha upgrade significantly enhances Celestia’s network capacity, reducing congestion and lowering gas costs. The halved TIA token inflation rate improves token scarcity, while removal of bridge restrictions for non-TIA assets broadens use cases and strengthens cross-chain interoperability. These fundamental upgrades drove a 6% price uptick for TIA in the first 24 hours after launch. In the short term, traders may capitalize on positive sentiment and momentum. Over the long term, increased utility and developer adoption of the data availability layer are likely to boost TIA demand and support sustained upward price pressure.