Starknet (STRK) Faces 16% Price Drop Within 24 hrs Of Trading

• Starknet’s airdrop attracts over 1 million users amid market volatility.
• Token distribution sparks controversy; early investor unlocks raise concerns.

Starknet, the Ethereum layer-2 network, has made headlines with its much-anticipated token airdrop, offering over one million crypto enthusiasts a chance to claim their stake in the network’s governance. The airdrop, which commenced on February 20, has already seen significant traction, with over 51,000 users claiming their tokens, representing nearly 5% of eligible participants.

However, the launch has been met with turbulence in the market, as the STRK token experienced a 15% decline in value within the first twenty-four hours of trading, currently hovering at $2. Despite the setback, the token’s market capitalization stands at a substantial $1 billion, securing its position as the 54th largest cryptocurrency, according to CMC.

Notably, the distribution of 728 million tokens to approximately 1.3 million addresses marks one of the most extensive airdrops of the year. 

Starknet aims to address Ethereum‘s scalability challenges by processing transactions off-chain. Also thereby reducing congestion and fees on the main network.

Fluctuations And Attention

Controversy surrounds Starkware’s plans to unlock 1.3 billion STRK tokens allocated to early investors and contributors by April 15, sparking backlash within the community. While the project emphasizes inclusivity in its airdrop, questions linger regarding the equitable distribution of tokens and the potential impact on market dynamics.

Recent reports shed light on major sellers in the aftermath of the airdrop. Notably, Nethermind, a Lido Node Operator, has liquidated a significant portion of their STRK holdings, while FlowTraders opted to deposit a portion of their tokens to exchanges and sell the remainder on decentralized platforms, according to SpotonChain.

As Starknet navigates through its token distribution phase and market fluctuations, attention turns to the network’s ability to deliver on its promise of scalability and decentralized governance.