Starknet Ethereum L2 Solution Surges with $1 Billion TVL

Starknet, a Layer-2 scaling solution for Ethereum had a positive price surge and a Total Value Locked (TVL) surpassing $1 billion.

A scaling approach based on Ethereum’s Layer-2 design Following its historic launch earlier in the week, Starknet is experiencing a positive price surge.

Starknet (STRK) TVL Growth

Additionally, Starknet has become the fourth L2 on Ethereum to have a Total Value Locked (TVL) that has surpassed the threshold of one billion dollars. Immediately after the launch of its STRK airdrop, it emerged as a significant player in the cryptocurrency industry.

Through the airdrop, the protocol awarded its early adopters more than 700 million tokens out of the total of 1.8 billion allotted for the activity.

Some users obtained millions of the STRK tokens distributed during the it’s airdrop. Following the asset’s debut, there was an immediate selloff from several recipients, resulting in a price decline.

Many leading trading platforms including Binance Exchange supported the it’s birth and listed STRK for trading activities. Starknet now claims a TVL of $1.31 billion, an increase of more than 620% since the company’s debut according to data from L2Beat.

Based on the figures, they are now only behind Arbitrum One, which has a total value of more than $12.82 billion, OP Mainnet which has a total value of $7.51 billion and Manta Pacific, which boasts a total value of $1.83 billion locked in its smart contracts.

Starknet takes a groundbreaking approach to the Ethereum scalability problem by utilizing its zk Rollup technology. Orbiter Finance and Rango Exchange are two of the most prominent smart contracts on the platform, and they are currently attracting users from all walks of life.

This is because their distinctiveness has attracted a significant amount of new capital. Selling pressure has significantly impacted the native token of Starknet (STRK) since its introduction, resembling the volatility of digital currencie

The Starknet Token Outlook

Following a 1.53% decrease over the previous 24 hours, the token is trading at $1.92 as of this writing. Even though STRK has experienced some bullish rebounds, its data indicate that many early recipients are still selling off the token.

The trade volume dropped by more than 30%, reaching $293,675,333. Despite the general decline in prices, the debut of Starknet (STRK) has been quite successful, as evidenced by the fact that its market capitalization is currently estimated to be between 1 billion and 39 billion dollars.

With the inclusion of advanced perpetuals contract trading, similar to that of Binance, Starknet is well-positioned to navigate through the ongoing bearish downturn that it is experiencing soon.