In an unfolding revolutionary twist, Starknet – the Ethereum-based Layer-2 scaling solution surpassed $1 billion Total Value Locked (TVL) and scaled up to become the fourth-largest L2 on Ethereum. Colin Wu, a prominent journalist covering the crypto industry, revealed in a Wu Blockchain X post the meteoric rise of Starknet in the crypto world.
Starknet came into the spotlight with the launch of its STRK airdrop and distributed more than 700 million tokens out of the 1.8 billion it had allocated. Although the airdrop went well, there were some hiccups; some users, in particular, got more STRK tokens than others. It provoked an instant sell-off by some holders, which made asset prices crash momentarily after the launch.
Contrary to the rocky start, Starknet gained high backing from the major exchanges like Binance Exchange that quickly listed STRK for trading, hence helping it fetch more visibility and accessibility in the market.
Starknet TVL Hits $1.31B, Tops Ethereum L2 Solutions
According to L2Beat data, Starknet’s TVL has hit the sky-high $1.31 billion, representing an astounding 620% increase compared to its launch. That puts STRKon on the short list of Ethereum’s top L2 solutions, right behind Arbitrum 1, OP Mainnet, and Manta Pacific, with TVLs of $12.82 billion, $7.51 billion, and $1.83 billion, respectively.
Setting itself advantageous by having zk Rollup technology, STRK has attracted large capital inflows, with smart contracts like Orbiter Finance and Rango Exchange being adopted by users.
Nevertheless, STRK has undergone major selling pressure since its birth, simulating the same volatility characteristic of digital currencies. Currently, the market value of STRK is $1.92, which is 1.53% down from the last 24 hours. Although bullish short-term rebounds are observed, metrics show that initial owners are still shedding their tokens, which caused an almost 30% decrease in trading volume to around $293,675,333.
However, against those fluctuations, the launch of Starknet is mostly declared successful, with the current market capitalization of $1.39 billion. Integrating advanced perpetual contracts trading, mainly from platforms like Binance, will allow Starknet to navigate the bearish market with resilience and flexibility.
With Starknet establishing itself as the top Layer-2 solution for Ethereum, the crypto industry is watching closely for more developments and milestones on the way to scalability and mainstream adoption.