StarkNet (STRK) Price Tanks Over 17% Following 1.4 Million Token Airdrop

The native cryptocurrency of the StarkNet network, STRK, is experiencing notable selling pressure, plummeting by 17% and dipping below the $2.0 mark. Following its trading debut on Tuesday, February 20, the StarkNet (STRK) token briefly surged to $3.5. However, it failed to maintain momentum and has since corrected by nearly 50% from its peak

StarkNet (STRK) Price Tanks After Airdrop

The STRK token is currently trading at $1.95 with a market cap of $1.4 billion. On the debut day of listing, the STRK trading volume surged to a staggering $1.6 billion. Some of the top cryptocurrency exchanges like Binance have announced support for StarkNet.

Binance, a leading cryptocurrency exchange platform, announces the addition of Starknet (STRK) to its suite of services, including Binance Simple Earn and Binance Convert. Furthermore, Binance will integrate STRK into Binance Margin, Binance Futures, and Binance Auto-Invest on specific dates, enhancing accessibility and usability for traders and investors.

In particular, Binance Simple Earn now offers subscribers the opportunity to participate in STRK Flexible Products. Thus, it will allow users to earn rewards via flexible investment strategies.

Lookonchain, a prominent provider of on-chain data analytics, uncovers a significant airdrop event involving 1,432,800 STRK tokens, valued at $3 million. Remarkably, this airdrop was distributed across 1,361 wallets, indicating widespread participation in the distribution of the digital assets.

Analysis conducted by Lookonchain reveals that following the airdrop, the recipients, spanning 1,361 wallets, proceeded to transfer their allocated STRK tokens to a designated wallet address identified as “0x027c…9078”. This transfer activity suggests that recipients swiftly claimed their airdropped tokens and subsequently consolidated their holdings in a single wallet address.

More About the Project

Starknet functions as a Layer 2 solution, providing scalability and maintaining Ethereum-level security by creating STARK proofs off-chain, which are then transmitted on-chain. Developed by StarkWare Industries, an Israeli blockchain company, Starknet was purpose-built to tackle Ethereum’s scalability challenges.

Starknet leverages STARKs, a cryptographic proof system, to validate transactions on the Ethereum network. Unlike other zero-knowledge rollup solutions that utilize SNARKs, STARKs offer quantum resilience and promise various scalability enhancements.

Furthermore, Starknet intends to dedicate 50 million STRK tokens to incentivize DeFi protocols, thereby stimulating growth in Total Value Locked (TVL). These protocols, functioning on Starknet, are likely to distribute new tokens to users via airdrops.

The initial staking Annual Percentage Yield (APY) stands at 12%, encouraging users to stake their tokens instead of selling them. Despite this, some individuals voiced discontent over not receiving the airdrop.