Starknet TVL Balloons Nearly 200% In Single Week

Starknet’s February 14th launch garnered immense attention, primarily due to its generous rewards program. Early adopters were compensated with over 700 million STRK tokens, the project’s native cryptocurrency.

However, the launch ceremony wasn’t without its controversies. Several accusations arose, with some community members alleging that the Starknet team dumped a significant amount of their tokens, contributing to a price drop below $2 for STRK.

Additionally, reports surfaced regarding issues with the token issuance process, further stirring doubts and anxieties among investors.

It’s crucial to analyze other indicators for a more comprehensive understanding of Starknet’s current state and future prospects. One such metric is development activity, measured by tracking code commits on public GitHub repositories associated with the network.

A concerning trend emerges when looking at this measure: Data suggests a decline in developer activity, potentially implying a slowdown in the development of new features and functionalities.

STRKUSD trading at $2.004 on the daily chart: TradingView.com

Although this decline doesn’t necessarily guarantee impending doom for Starknet, it undoubtedly raises concerns about the project’s long-term growth trajectory.

Starknet Data Shows A More Reassuring Sign

Despite the negative vibe, data from Santiment, an on-chain analytics platform, reveals a more positive signal. The stablecoin supply held by whales (large investors) on the Starknet network has exhibited an upward trend, reaching 54 as of this writing.

This rise suggests increased buying power among whales, potentially indicating their confidence in Starknet’s future and potentially triggering a price hike for STRK. Looking forward, Starknet’s price might experience either stabilization or a significant increase.

Source: L2BEAT

Meanwhile, Starknet’s ascent to the fourth position among all launched Layer 2 projects on the Ethereum blockchain, propelled by a staggering 194% increase in Total Value Locked (TVL) to $1.32 billion, highlights not only its rapid rise but also the growing confidence and adoption within its user base.

The surge in TVL underscores the platform’s appeal, with users actively depositing and staking crypto assets, thereby contributing to the establishment of a robust ecosystem.

The significance of Starknet’s remarkable growth extends beyond mere statistics. It paints a narrative of a platform gaining prominence in the competitive landscape of Layer 2 scaling solutions.

This ascent suggests that Starknet is not merely riding a wave of hype but is substantiating its value proposition, potentially positioning itself as a significant player in the Ethereum ecosystem.

At the time of writing, STRK was trading at $2.00, up 3.7% in the last 24 hours, data from Coingecko shows.

Featured image from Pexels, chart from TradingView