The fish lives in small ponds created by seeping groundwater or overflow from small brooks or springs. Water temperature in January was rather low (22–24 °C), but as the habitat is very shallow, it would heat up quickly during hot spells, thus
D. margaritatus is probably tolerant of temperatures above 26 °C. As in most water bodies in the Inle drainage, the water is slightly
alkaline. The habitat is heavily vegetated with
Hydrocharitaceae similar to
Elodea (water weed). The latter species presumably is the only known significant
predator of
D. margaritatus. The species is locally fished for food to some extent; it is dried and bought as a
protein source by poor people. A can of some 500
D. margaritatus sold for food fetched about 25
kyat (about 2 UK pounds/3.9 US$/2.7 EUR) before the fish was discovered for the aquarium trade.
Reproduction The spawning behavior has significant consequences for captive breeding (see
below). The celestial pearl danio appears to be
adapted to somewhat ephemeral habitats. It does not have a dedicated
spawning season, nor do the females lay continuously. Rather, they produce small batches of around 30 eggs per spawning episode. The time between spawnings is unknown at present. Eggs are not strewn freely into the water, but they are not deposited in clutches to a prepared surface either; rather, it seems, that they are hidden away in vegetation as a loose batch. Courting males will seek out and try to defend a patch of dense vegetation. While pursuit swimming has been observed, it does not seem to be connected directly to the actual act of reproduction in which the male displays to a passing female, and tests her readiness with a brief chase. The pair then moves into the substrate and deposits the eggs. Other males noticing reproduction will try to follow the mating pair, either to try to fertilize the eggs with
their own sperm or eat them. At 24–25 °C, the
larvae hatch after 3–4 days. They are dark and
cryptic initially and for about three days after hatching, they hide away between substrate and
detritus and are very hard to see. They subsequently become lighter in color and start swimming freely and feeding on their own. At some 8–10 weeks after hatching, they undergo metamorphosis to adult form, and the color pattern starts to appear from week 12 onwards. ==Status and conservation==