The project behind data availability blockchain Celestia on Monday released what it calls its biggest software update yet, called Matcha.
In essence, this upgrade is designed to increase network capacity and improve token economics. Among the technical changes, it increases the maximum block size to 128 MB (previously 8 MB) and changes the way data propagation works, allowing for much higher performance.
Simply put, Celestia is preparing to handle a lot more data, which is important if many applications start using it as their underlying “routing” or “data availability” layer.
Beyond performance, the Matcha update also aims to achieve significant economic and interoperability improvements. The update reduces annual symbolic inflation from ~5% to ~2.5%. It also removes a “token filter” for cross-chain bridges, meaning non-TIA assets can be more easily moved or routed through the Celestia layer. This is intended to indicate that Celestia wants to become a reference layer for cross-chain data availability and asset routing.
The project’s native token, TIA, is up approximately 6% in the last 24 hours, trading around $0.65. However, the token is still down 97% from its high of around $19.70 in December 2024.
Read more: From airdrop to free fall: Celestia tokenomics under fire
