Starknet’s STRK Token Holds $2 Billion Market Cap Despite Volatile Beginning Around $5
The largest airdrop of the year has taken place, with approximately 1.3 million addresses receiving a distribution of 728 million STRK tokens. Prior to its launch, the token’s pre-launch perpetual futures on the decentralized futures platform Aevo were valued at $1.80. However, shortly after the release of the STRK token, its price skyrocketed to $5, although it has since experienced some volatility and fallen back to $3. Nevertheless, the market cap remains above $2 billion.
Notable market players such as Amber Group, Wintermute, and Flow Traders have made significant investments in the STRK token. Amber Group has acquired 1 million STRK tokens and has deposited 200,000 on Bitfinex, demonstrating confidence in Starknet’s ecosystem. Wintermute and Flow Traders have also entered the market, investing 2 million and 2.5 million STRK tokens respectively, thereby adding liquidity and boosting the token’s value.
With a total initial supply of 10 billion tokens, the fully diluted value (FDV) of STRK reaches $35 billion, representing the theoretical market capitalization if the entire supply were in circulation. However, the current market capitalization, calculated by multiplying the circulating supply with the current price, stands at $2.18 billion.
After being listed on Binance, the price of STRK surged past $7 and exceeded $5 on KuCoin. According to CoinMarketCap data, STRK has been trading within the range of $3 to $4.
Starknet, the decentralized platform behind STRK, has started allocating tokens for airdrop application contracts, which are crucial for distributing tokens among its ecosystem stakeholders. Noteworthy among these contracts are the STRK Provisions Claim contracts on Starknet, Ethereum, GitHub, and StarkEx, each serving specific roles in ensuring fair token distribution.
The Starknet Foundation has released details of its token provision, including the introduction of a dedicated portal for eligibility checks and STRK token distribution. Over 700 million STRK tokens will be distributed across nine categories for governance and transaction fees, with staking planned for the future.
Starknet is a leading Ethereum Layer 2 (L2) platform that has introduced zero-knowledge rollup (ZK-rollup) technology. This protocol allows for off-chain processing of transactions and smart contract functions, with cryptographic proofs submitted to Ethereum to ensure security guarantees from its blockchain.
The protocol has addressed concerns raised by members of the Starknet and Ethereum communities regarding the eligibility criteria for the STRK airdrop. As a result, the number of active users on Starknet has increased in recent weeks as prospective STRK recipients sought eligibility for the campaign.
It is worth noting that 50.1% of the STRK supply is designated for the Starknet Foundation for community airdrops, grants, and donations. Early contributors and investors will receive 24.68% of the total supply, while 32% is allocated to StarkWare employees, consultants, and developer partners. Token unlocking will occur monthly over a period of 31 months, starting in April.
With the STRK token gaining momentum, market analysts and investors are closely monitoring its trajectory compared to tokens like TIA and ARB. They are actively evaluating whether STRK will follow a similar path or carve out a unique journey in the coming days.