MilkyWay Protocol has formally moved to shut down its L1 mainnet, with user assets already repatriated to their original networks. According to the latest announcement, the team executed a chain upgrade before winding down MilkyWay L1 and returning all assets on that chain to their canonical networks. For Celestia users, bridged TIA should now appear on the Celestia chain. Those still unable to see their funds can contact support@milkyway.zone or leave a comment under the announcement for assistance.
Asset return completed, milkLST withdrawals live
The public notice stated that the team completed a chain upgrade before winding down MilkyWay L1, then returned all assets on that chain to their canonical networks. In simple terms, tokens once held on MilkyWay now sit back on the chains where they started. The team also gave a direct message to milkLST holders: withdrawals to underlying assets are live, and users should exit the chain at the earliest convenience.
Why MilkyWay is closing: DeFi growth below expectations, restaking demand fades
The shutdown did not come out of nowhere. In January, the protocol announced it would gradually cease operations and then close. The team explained that DeFi growth in the Celestia ecosystem did not arrive as expected, while restaking demand faded faster than the market first believed. MilkyWay initially attracted $250 million in TVL and later expanded from Celestia into Initia and Babylon, but demand did not hold. The team also explored real-world asset tokenisation and WayCard, yet those efforts were either disrupted or arrived too late for the available runway.
According to the earlier wind-down plan, a snapshot was taken on Jan. 14, 2026, at 10:00 AM UTC, with automatic pro-rata USDC fee returns for eligible MILK holders. Users have exit paths through MilkyWay L1, BSC, Osmosis, and supported exchanges.
TIA price under pressure as market awaits direction
Following the update, Celestia (TIA) remained weak. CoinMarketCap data shows TIA at $0.3220, down 3.17% in 24 hours, with a market cap near $288.7 million and daily volume of $21.22 million, down 18.22%. The 24-hour range saw an open of $0.3311, high of $0.3312, low of $0.3212.
On the technical side, RSI stands at 44.35, while MACD stays below zero, indicating soft momentum rather than panic. The main driver appears to be broader risk aversion, with TIA behaving like a higher-beta asset during pullbacks. If it holds above $0.30, price may stabilize. A break below that level could reopen the path toward the yearly low near $0.15.
The MilkyWay shutdown closes a once-prominent Celestia project in an orderly way while pushing TIA back onto its home chain. For users, the key task now is simple: check balances, withdraw if needed, and watch whether TIA can defend the $0.30 area as sentiment stays fragile. The most important signal is not the shutdown itself — it is the careful asset return, enabled withdrawals, and the earlier January plan, suggesting the team is trying to finish the process with clear user exit paths and fewer surprises.