Ethereum Layer 2 Network StarkNet Struggles to Maintain Its Footing Post-Airdrop
The post Ethereum Layer 2 Network StarkNet Struggles to Maintain Its Footing Post-Airdrop appeared on BitcoinEthereumNews.com.
Activity took a downturn for StarkNet after its much anticipated airdrop did not meet the community’s expectations. Ethereum Layer 2 network StarkNet is struggling to recover from an airdrop that left some users disgruntled as most activity metrics plummet. According to the StarkNet Foundation’s Dune dashboard, unique daily active users (DAUs) have plummeted 98% to 6,100 on Aug. 26 from 298,400 on Feb.20, the day before the airdrop. In contrast, DAUs of competing Layer 2 solutions like Scroll and Linea increased by 49% and 173% to 53,000 and 213,000, respectively, in the same time frame. StarkNet DAUs Source: Dune, StarkNet Foundation Dune data further reveals a steep decline in daily transactions on StarkNet. Transactions have plunged 82% to 113,000 on Aug. 26, down from its all-time high of 1.2 million on Feb. 20. StarkNet’s total value locked (TVL) has slumped by 65% to $588 million from its all-time high of $1.77 billion in March, and is down 51% since the project’s airdrop, according to L2Beat. STRK token has plummeted to an all-time low of $0.37, down 86% from its high of $2.63 in March, according to CoinGecko. STRK has a market capitalization of $621 million and a fully diluted market cap of $3.83 billion. Founded by Eli Ben-Sasson, Uri Kolodny, Michael Riabzev, and Alessandro Chiesa and launched in 2022, StarkNet is a scaling solution for Ethereum, aiming to enhance transaction speeds and reduce costs using zero-knowledge (ZK) technology. ZK technology allows for the bundling of transactions off-chain while ensuring their validity through cryptographic proofs, thereby maintaining Ethereum’s security while scaling its capacity. StarkWare, the company behind Starknet first raised a $6 million seed round over five years ago. The most recent round, a $100 million Series D at $8 billion valuation, was completed in May 2022. Controversial Airdrop The StarkNet…
Filed under: News - @ August 27, 2024 6:25 pm