Starknet STRK Rockets To Fourth Largest Ethereum Layer 2 With $1.3B TVL After Chaotic Token Launch

The crypto community has been abuzz with starknet's sensational growth as Ethereum's Layer-2 scrounging solution has established itself as a major player seemingly overnight. Driven by a spectacular token airdrop and listing, Starknet's Total Value Locked (TVL) has exploded to over $1.3 billion, ranking it 4th among all L2 protocols.

TLDR

Starknet TVL Exceeds $1.3 Billion Since Launch 4th Largest Ethereum L2 Airdrop Distribution Has Troubled But Overall Succeeded, STRK By Binance Aids Adoption STRK Token Faces Volatility And Selling Pressure, But Market Cap Still At $1.39 Billion Dollar's impressive zack-pack technology attracts projects like Orbiter Finance and Rango Exchange to StarkNet Early volatility is expected for new L2s, but Starknet is poised to navigate a bear market with steady trading.

The protocol took center stage last week with the much-anticipated distribution of the STRK token via airdrop. More than 700 million STRK have been awarded to previous adopters of 1.8 billion allocated, which has sparked high activity and speculation for former illegal assets.

However, the launch ran into a bit of a snag, with some recipients receiving millions more tokens than others due to computational inconsistencies. This led some holders to dump STRK immediately, causing prices to fall in the process. Nevertheless, Starknet's direction has been straightforward since its inception.

Per L2Beat, Starknet's TVL now sits at an impressive $1.31 billion, up more than 620% from its leverage. Having convincingly crossed the $1 billion mark, Starknet trails only titans such as Arbitrum, Optimism and Manta in the L2 ranks when it comes to liquidity depth.

Support for high-level centralized exchanges was crucial to StarNet's leap to popularity. Binance, Huobi, and OKX were quick to list STRK after its launch, allowing it to tap into vastly expanded liquidity pools. Starknet's Zack Pack technology also holds special attention, with bluechip DeFi platforms such as Orbiter Finance choosing to build into its ecosystem.

However, young L2 protocols often struggle with price uncertainty at an early stage. True to form, STRK has been on a rollercoaster since its inception, still facing constant sales pressure from airdrop receivers, resulting in a 30% hole in business volumes. STRK was last traded at $1.92 and achieved moderate losses in 24 hours.

Nevertheless, Starknet seems poised for long-term success with its current market cap of $1.39 billion. By integrating advanced trading functions such as perpetual contracts, which are largely out of Binance, Starknet can better navigate bear phases. The project enjoys community goodwill thanks to generous airdrop rewards.

All things considered, Starknet is off to a surprisingly promising start, despite the usual early volatility. As Ethereum gas fees become prohibitive, demand for well-designed L2 solutions such as Starknet will continue to grow.