Israeli Company StarkWare’s L2 Solution, Starknet, Soars to $10 Million TVL in Rapid Expansion
Starknet, Ethereum’s Layer 2 (L2) network powered by ZK rollup technology, has experienced significant growth in recent months, with its total locked-up asset value (TVL) surpassing over $10 million. This marks a tenfold increase in just two months, highlighting the network’s expanding popularity.
Developed by Israeli company StarkWare, which secured $165 million in funding from prominent investors like Sequoia, Paradigm, and Andreessen Horowitz, Starknet offers a permissionless L2 solution that tackles network congestion by leveraging zero-knowledge proofs and processing certain transactions off-chain. The project’s valuation soared to $8 billion after a successful $100 million Series D funding round in 2022.
Starknet has gained recognition for hosting multiple decentralized applications (Dapps) such as Braavos and JediSwap, known for their user-friendly interfaces and robust security. Additionally, the network organizes NFT events like the “Starknet Journey Map,” aimed at enhancing user engagement and involvement within the ecosystem.
The “Starknet Journey Map” provides users with an opportunity to participate actively and explore the Starknet universe. This engagement strategy seems to have contributed to the remarkable growth in TVL, which surged from around $1.4 million in March 2023 to over $10 million in May—a growth rate of over 10 times.
While Starknet’s decentralized operations commenced in March 2023, the airdrop of its native token “STRK” has not yet taken place, and the implementation plan remains unclear. Nevertheless, the Starknet Foundation holds 5.01 billion STRK, approximately 50.1% of the initial token supply, which will be utilized to promote network decentralization. There is thus anticipation that some tokens will be airdropped to early contributors and users.
To further stimulate user activity, Starknet has initiated various campaigns. For example, Braavos, a self-managed wallet operating on Starknet, launched the “Starknet Journey Map” NFT event on May 17th. Participants can earn limited edition NFTs by completing specific challenges over a span of five weeks. In the first challenge, participants must achieve a “Starknet Pro Score” of 10% or higher, indicating their usage of Dapps within the Braavos wallet.
Additionally, an upcoming campaign called “Starknet Xplorer” will be held for Argent wallets. This eight-week mission-based initiative will enable participants to mint NFTs. Looking ahead, Starknet’s development roadmap includes an upgrade to version 0.12 scheduled for June 2023, expected to significantly enhance network throughput and data processing capacity. These advancements and engagement initiatives are likely to further fuel interest in Starknet among users and developers alike.
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