Starknet Has Solutions For DeFi Projects Built on Ethereum

Starknet is an open-source framework and focuses mainly on the privacy and scalability of decentralized applications. Its highest-ever Total Value Locked (TVL) stood at $10.49 Million. Over the past few months, the decentralized applications that are built on Ethereum have observed a steep growth in many DeFi applications on the network. 

Starknet hit the ever-highest in its TVL. According to reports by DefiLlama, Starknet’s TVL has increased by 10 folds from $1.449 million at the start of March to $10.49 Million currently. 

Talking about TVL, TVL is an indicator commonly used by DeFi investors to assess the overall value of digital assets. It is different from market capitalization and trading volume. TVL is given in US dollars or any other fiat currency and is a measure of assets deposited in a particular protocol, platform or smart contract. 

Visa is currently working on the next biggest challenge which is making Ethereum Wallets smarter. Starknet is developed by StarkWare which is an Israeli-oriented company. It was developed to address and find a solution for the limitations of Ethereum Blockchain such as high transaction fees or slow transaction processing time etc. This is done by enabling off-chain computations and data storage while keeping in mind the security blockchain provides. 

StarkWare president and co-founder Eli Ben-Sasson told Decrypt that he may not give any investment advice. Still, there will be a lot of developers who understand that for Ethereum’s scale to reach demand it surely needs a new, safe and battle-tested technology. He further added that Starknet is already recognized as a “hell of a technology stack”. 

To solve all the existing problems, Starknet brings into force the layer-2 scaling technique commonly called zero-knowledge rollups. It actually compiles hundreds or thousands of transactions behind off-chain and then verifies them in no time on-chain in a blink of an eye.

The current TVL of Starknet can be very low compared to other protocol’s TVL but its growth rate is extremely high. The TVL of Starknet was just $800,000 at the beginning of 2023. 

JediSwap is a permissionless AMM that allows users to swap, earn and build on the decentralized, community-driven protocol. JediSwap is the major player that is responsible for more than 50%, about $6 Million, of Starknet’s TVL. Arbitrum and Optimism, which are some other members of the layer-2 market, hold TVL of $2.4 Billion and $884 Million respectively.

Ben Sasson on asking other players that led to the popularity of Starknet mentioned Cairo. Cairo is the rust-inspired programming language which according to Ben is the best smart contract language that developers go to. They are waiting for the upgraded version 0.12 which will be released in June. They expect an increase in the throughput on Starknet via this version. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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