TVL exceeded US$1.4 billion after Starknet issued its currency. Is it a sign of value or a temporary popularity?

php Editor Xinyi Recently, Starknet’s TVL after issuing currency has exceeded 1.4 billion US dollars, triggering heated discussions in the market. People have discussed whether this is just a temporary trend, or whether it represents the emergence of the inherent value of the Starknet project. As the cryptocurrency market fluctuates, investors are full of expectations for the future development of Starknet and are also worried about possible risks. In this volatile market environment, it is still unknown whether Starknet can continue to attract capital inflows.

Introduction

In recent times, Starknet has continued to occupy market hot spots and has received support and pursuit from many institutions and users. As of February 23, L2BEAT data shows: Starknet TVL exceeded US$1.4 billion, continuing to hit a record high. It is now trading at US$1.48 billion, with an increase of 705.42% within 7 days.

Starting from the airdrop application, TVL increased by 6 times

On February 14 (UTC 8), Starknet opened the entrance to claim qualification inquiry, and The airdrop application was officially launched on February 20, marking the first shot of Starknet’s explosive launch. Although some address duplications and mislabelings occurred during the period, this did not dampen the enthusiasm of the market.

According to Token Flow data, on the day when applications were opened, about 380,000 users applied for a total of 340 million Starknet tokens STRK, accounting for 57.99% of the total airdrop amount.

In addition, on the second day when applications were opened (February 21), Starknet’s TVL data surged 6 times, reaching a maximum of more than $1.48 billion, and has remained at More than $1.2 billion. At the same time, STRK has been listed on many leading trading platforms, and the current currency price is approximately US$1.91. After conversion, the total amount of this airdrop is similar to the growth of TVL, that is, almost all tokens have entered the lock-up, which seems to reflect the market’s affirmation of Starknet’s value consensus at this stage.

The popularity has exploded, and Starknet has been promoted by leading platforms

Looking back at the relevant information, the popularity of Starknet has almost exploded in the past two weeks, especially before and after the opening of applications on the 20th. Major trading platforms: Bitget, Binance, OKX, Bithumb and Coinbase have successively announced and launched STRK spot trading. Binance launched the U-standard STRK perpetual contract on the 21st, with a maximum leverage of 50 times.

Binance and OKX announced STRK distribution plans for ETH staking users almost simultaneously. At the same time, the OKX Web3 wallet also announced on the 21st that it has fully supported the Starknet ecosystem. These measures have made Starknet highly sought after by the market and institutions for a time, and our perception of its development seems to indicate that Starknet's prosperity and the market it brings are not far away.

Recent related news

• On February 10th, Starknet blockchain browser Voyager released the STRK airdrop data dashboard page;
• On February 14th, Starknet opened for claiming Eligibility inquiry portal and announced application opening time;
• On February 17th, Starknet ecological AMM protocol JediSwap launched Jediswap v2, Uniswap v3 has a similar design;
• February 19th news, smart contract wallet Argent launches Portfolio, an all-in-one solution for managing Starknet assets;
• On February 20, Pyth Network announced that it has launched STRK/USD price feed data;
• On February 22, the Starknet Foundation Tweeted that the DeFi Spring event was officially launched and a month-long task series was launched continuously on Starknet;
• On February 22, Polygon Labs and the StarkWare team launched the fast proof system Circle STARK, which is planned to be merged into Plonky3;
• On February 23, Starknet tweeted that the StarkGate 2.0 mainnet was online;
• On February 23, EthSign tweeted that it had integrated the Starknet wallet, and users can log in seamlessly by connecting to the Starknet wallet. , sending and signing contracts;

With the dual blessing of narrative and technology, does Starknet live up to its name?

StarkNet’s recognized advantages come from the technical level: resistance to quantum attacks, STARKs technology and a strong engineering team. In addition, there are well-known institutions, as well as the praise and recognition of leading KOLs including Vitalik, which makes StarkNet The narrative is very strong and gives us a lot of room for imagination in terms of market value.

However, the current popularity seems to cover up some factors that may make it inconsistent with market value and popularity:

First of all, StarkNet’s ecology is still It is in its early stages and its development is relatively poor. Due to issues such as development experience and user experience, the ecosystem still lags behind Layer 2 such as zkSync. It cannot be compared with the ecosystem of OP and ARB, let alone replace or surpass it. At least it is impossible in a short period of time. .

Secondly, based on the current price, StarkNet’s market value is close to $20 billion, which has exceeded the market value of OP and ARB; if calculated based on the amount and valuation of institutional investment, only StarkNet's current market value is still artificially high.

From these two aspects, with the sudden increase in TVL and the concentrated explosion of market enthusiasm, Starknet's market value is obviously artificially high. Even with the dual blessing of narrative and technology, it seems to be unrealistic. We are worried that now Is the currency price and market value just a phased performance under the influence of the environment?

Is Starknet’s performance an explosion or a market expansion?

Starknet’s hot performance is not only an explosion after it has continued to accumulate energy in the past, but also related to current market trends. These all come from people’s FOMO emotions towards Starknet itself and the market.

From an objective point of view, on the one hand, Starknet's market value performance is obviously artificially high. Although it is accompanied by market popularity and support from institutions and VCs, Starknet's current ecology and applications do not support its current performance. It is highly likely that it will eventually return to rationality; on the other hand, the entire market is currently on an upward trend, and the overall market enthusiasm is also constantly heating up. When users’ expectations for the market and Starknet are superimposed, this false high may just be On the surface, as market enthusiasm and trends continue, Starknet's value will turn from virtual to real.

Perhaps it’s not that Starknet’s performance is inflated, but that the market continues to expand with the inflow of funds and accumulation of emotions. It’s just that Starknet happens to be the most eye-catching one in the market expansion. This seems to be another sign before the bull market arrives. A trial may give us the long-awaited surprise in the next moment. It will take time to verify all this.

About Starknet

StarkNet is an Ethereum Rollup Layer2 based on ZK-STARKs technology. The parent company is StarkWare, which has StarkEX for enterprise services and StarkNet Layer2 for consumers. StarkNet takes into account both privacy and scalability, allowing DApps to achieve unlimited expansion and technical extension without compromising the composability and security of ETH. It is considered an effective solution for high throughput and security requirements.

Advantages of Starknet

• You don’t need to know the validator to complete the packaging transaction work, and there is no need for a seven-day waiting period when transferring assets across chains;
• Taking into account privacy and expansion gender, effectively protecting the privacy and data security of user transaction data;
• Highlights in ensuring network stability, promoting V3 transactions, reducing L1 fees to reduce transaction costs, etc.;
• The abstraction of native accounts Each part has a unique role that contributes to the overall user experience;
• The hardware signing feature leverages the device's built-in security subsystem to keep user keys safe even if the application processor core is compromised

Problems with Starknet

• The official cross-chain bridge StarkGate has just been launched and may face smart contract risks;
• The use of independent Cairo language may affect the entry of developers, resulting in The ecological development is not as good as expected;
• The current ecological niche is lagging far behind and may be overtaken by other projects in terms of technology;

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