Starknet’s TVL Soars 194%, STRK Price Tied to Ethereum’s Performance
The Most Important at a Glance
The Total Value Locked (TVL) of Starknet [STRK] has increased by an impressive 194% over the last seven days. This surge suggests growing confidence in the project. However, the price of STRK could continue to fall unless Ethereum (ETH) sees a significant upswing.
Starknet TVL: Impressive Growth
Just two weeks after the launch of the mainnet, Starknet’s TVL reached a value of 1.32 billion dollars. This makes the Ethereum Layer 2 the fourth largest of its kind among the projects already launched on the blockchain. The TVL measures the value of assets locked or staked in a particular blockchain network.
Controversy Surrounding Starknet
Despite the successful launch of Starknet, which rewarded its early users with over 700 million STRK tokens, there have been some controversies. In the past week, there have been allegations that the Starknet team sold a large amount of their tokens, pushing the price of STRK below 2 dollars. In addition, there was an error in the token issuance.
Confidence in Starknet Growing
However, the increase in the TVL suggests that confidence in Starknet is growing again. If the TVL continues to rise, STRK could have a chance to shoot beyond its current value. However, the TVL alone cannot determine whether the price of STRK will rise or not.
Development Activity and Stablecoin Supply
Another important factor is the development activity. It provides information about whether a project is integrating new features into its network. A decrease in development activity at Starknet suggests that the code commits from developers have decreased. This could be interpreted as a bearish sign.
In terms of the stablecoin supply in the network, the on-chain data from Santiment shows an improvement. The stablecoin supply held by whales has risen to 53.99. This suggests that the whales might have enough purchasing power to trigger a rise in the STRK price.
Our Assessment
Despite some controversies and challenges, Starknet shows impressive growth. The rising TVL and the improvement in the stablecoin supply are positive signs. However, caution is advised as the price of STRK also depends on the development of Ethereum. It remains to be seen whether Starknet can continue its upward trend.
Sources: Victor Olanrewaju, Saman Waris, L2BEAT, Santiment.
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