Is the STRK Token Ready for a Bullish Breakthrough?

Starknet, a new layer-2 for Ethereum, dropped its STRK token this week in a massive airdrop. On the first day, over 140 million tokens landed in about 128,000 wallets. The token’s debut was impressive, hitting $7 on Binance before settling at $2.01.

What is Starknet?

Starknet boosts Ethereum by handling more transactions at lower costs. It uses Zero-Knowledge Rollups (ZK-Rollups) to bundle many transactions into one which reduces the amount of data that needs to be processed and verified on the Ethereum mainnet. This speeds up the transaction process but also cuts down on the gas fees.

Starknet also uses a method known as STARK proofs (Scalable Transparent ARguments of Knowledge) which preserves the integrity and security of the aggregated data. As a result, Starknet can process thousands of transactions per second (TPS) off-chain, while maintaining Ethereum’s security and decentralization.

This improves the user experience and also opens up new possibilities for the types of applications that can be developed on Ethereum’s ecosystem.

Criticism and Feedback

The Starknet airdrop faced heavy criticism when the token release schedule became known. Initially, StarkWare — the blockchain firm developing…