In a highly anticipated move, Starknet (STRK), an Ethereum (ETH) roll-up protocol, commenced trading on prominent cryptocurrency exchanges including Binance, Bybit, Bitfinex, and OKX on Tuesday.
The token’s launch was accompanied by an airdrop, distributing a staggering 728 million tokens to over one million addresses, making it one of the largest airdrops of the year. However, the initial excitement was dampened as the token experienced a significant retracement of 53.8%, plummeting to a current price of $2.04.
However, to better grasp the protocol’s capabilities and assess its potential future price actions, it is crucial to delve into the underlying technology and the buzz surrounding this player within the top 60 cryptocurrencies, boasting a substantial market capitalization of $1.4 billion.
Unveiling Starknet
Starknet operates as a Layer 2 solution, offering scalability and Ethereum-level security by generating STARK proofs off-chain, which are relayed on-chain.
Developed by StarkWare Industries, a blockchain firm based in Israel, Starknet was specifically designed to address Ethereum’s scalability concerns. The protocol was fully launched in February 2022 as a permissionless Layer 2 network, allowing developers worldwide to build decentralized applications on its infrastructure.
StarkWare also developed another platform called StarkEx, which has been live since June 2020. However, StarkEx is a permissioned network tailored to specific decentralized app (Dapp) requirements.
Founded in 2018, StarkWare has garnered support from renowned investors such as Sequoia Capital, Paradigm, and Coatue, solidifying its position within the industry. In a Series D funding round held in May 2022, the company raised $100 million, valuing StarkWare at an impressive $8 billion.
StarkWare has raised $261 million in funding, demonstrating strong investor confidence in its vision and technology.
With that noted, a prominent decentralized finance (DeFi) researcher who goes by the pseudonym “DeFi Ignas” has identified three key catalysts that could fuel the long-term growth of Starknet.
STRK Airdrop And DeFi Incentives
The researcher highlights Starknet’s utilization of STARKs, a cryptographic proof system, to validate transactions on the Ethereum network. In contrast to other zero-knowledge rollup solutions that employ SNARKs, STARKs offer quantum resilience and the potential for numerous scalability improvements.
Click Here to Read the Full Original Article at NewsBTC…
