Starknet TVL Soars by 200% in One Week: Exciting Times Ahead for STRK! 🚀

Starknet TVL Soars by 200% in One Week: Exciting Times Ahead for STRK! 🚀

Analyzing Starknet’s Current State and Future Prospects

Starknet, a Layer 2 scaling solution on the Ethereum blockchain, recently launched its platform and gained significant attention due to its generous rewards program. Early adopters were rewarded with over 700 million STRK tokens, the project’s native cryptocurrency. However, the launch was not without controversy, as accusations arose regarding token dumping by the Starknet team and issues with the token issuance process.

To gain a more comprehensive understanding of Starknet’s current state and future prospects, it is important to analyze other indicators beyond these controversies. One such indicator is development activity, which can be measured by tracking code commits on public GitHub repositories associated with the network. Unfortunately, data suggests a decline in developer activity, potentially indicating a slowdown in the development of new features and functionalities.

Starknet Price Chart

While this decline in developer activity does raise concerns about Starknet’s long-term growth trajectory, there are other positive signals to consider. Data from Santiment, an on-chain analytics platform, reveals that the stablecoin supply held by whales (large investors) on the Starknet network has been increasing. This suggests that whales have confidence in Starknet’s future and may contribute to a price hike for STRK.

Starknet Whales Supply Chart

A Promising Rise in Total Value Locked (TVL)

Furthermore, Starknet has seen a significant increase in Total Value Locked (TVL) on its platform. It has climbed to the fourth position among all launched Layer 2 projects on the Ethereum blockchain, with a 194% increase in TVL to $1.32 billion. This surge in TVL highlights not only Starknet’s rapid rise but also the growing confidence and adoption within its user base.

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The increase in TVL indicates that users are actively depositing and staking crypto assets on the Starknet platform, contributing to the establishment of a robust ecosystem. This growth is not just about numbers; it signifies the platform’s appeal and its potential to become a significant player in the Ethereum ecosystem.

At the time of writing, STRK was trading at $2.00, showing a 3.7% increase in the last 24 hours according to data from Coingecko.

Featured image from Pexels, chart from TradingView

🔥 Hot Take: Starknet’s Future Looks Promising with Room for Improvement

While Starknet faced controversies during its launch, such as token dumping allegations and issues with token issuance, there are positive indicators that suggest a promising future for the project. However, there are areas that need improvement to ensure long-term success:

1. Developer Activity Decline:

  • The decline in developer activity raises concerns about Starknet’s ability to continue developing new features and functionalities.
  • It is crucial for the team to address this issue and attract more developers to maintain a steady pace of development.
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2. Addressing Controversies:

  • The allegations of token dumping and issues with token issuance need to be thoroughly addressed by the Starknet team to regain trust within the community.
  • Transparency and clear communication are key to resolving these controversies and maintaining a positive reputation.

3. Sustaining Whales’ Confidence:

  • The increase in the stablecoin supply held by whales is a positive signal, indicating confidence in Starknet’s future.
  • To sustain this confidence and potentially trigger a price hike for STRK, the team must continue delivering on their promises and providing value to investors.

4. Expanding the Ecosystem:

  • The significant increase in TVL demonstrates the growing adoption of Starknet’s platform.
  • To further establish a robust ecosystem, the team should focus on attracting more users and encouraging them to actively participate in depositing and staking assets.
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Overall, while there are concerns about Starknet’s development activity decline and controversies surrounding its launch, there are positive signs that indicate a promising future. By addressing these issues, sustaining investor confidence, and expanding its ecosystem, Starknet has the potential to become a significant player in the Ethereum ecosystem.

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Author – Contributor at | Website

Bitro Conwell stands as an intellectual architect, weaving together the roles of crypto analyst, meticulous researcher, and editorial virtuoso with finesse. Amidst the digital intricacies of cryptocurrencies, Bitro’s insights resonate harmoniously with seekers of all stripes, showcasing a profound understanding. His ability to untangle the most complex threads within the crypto landscape seamlessly pairs his their editorial finesse, transforming intricacy into an artful tapestry of comprehension.