Starknet (STRK) Becomes Fourth Ethereum L2 With TVL Above $1B

Ethereum-based Layer-2 scaling solution Starknet is on a bullish rampage following its historic launch earlier in the week. Starknet is now the 4th L2 on Ethereum whose Total Value Locked (TVL) now exceeds the $1 billion threshold.

The Starknet (STRK) TVL Growth

Starknet made its emergence in the crypto ecosystem following the launch of its STRK airdrop. The protocol rewarded its early users with over 700 million tokens out of the designated 1.8 billion for the airdrop. 

The Starknet airdrop was a success but with few inconsistencies like some users receiving millions of the STRK token. There was an immediate selloff from some recipients that eventually led to the slump in the price of the asset at post-launch.

Just like other known Ethereum L2 debuts, Starknet’s emergence was supported by many top trading platforms including Binance Exchange which eventually listed STRK for trading.

Per data from L2Beat, Starknet now boasts of a TVL of $1.31 billion, up by more than 620% since launch. With the statistics, Starknet now trails only behind Arbitrum One with a TVL of more than $12.82 billion, OP Mainnet with a TVL of $7.51 billion and Manta Pacific that boasts of a $1.83 billion locked in its smart contracts.

Starknet approaches the Ethereum scalability agenda in a unique way using its zk Rollup technology. Recognizing its uniqueness has drawn many new capital inflow with top smart contracts on the platform including Orbiter Finance and Rango Exchange now drawing users across the board.

The STRK Token Outlook

The Starknet (STRK) native token has faced a lot of selling pressure since its emergence, one that is reminiscent of the volatile digital currency. At the time of writing, the token is changing hands for $1.92 after dropping by 1.53% in the past 24 hours. 

While STRK has witnessed some bullish rebounds, its metrics shows that many early recipients are still selling off the token, underscored by the more than 30% slump in trading volume to $293,675,333. Amid these broader price slump, the launch of Starknet (STRK) has proven to be relatively successful with the market capitalization now pegged at $1.39 billion.

With advanced perpetuals contract trading integration like that from Binance, Starknet is poised to wade through its ongoing bearish slump in the near future.