Starknet's STRK Token Faces Steep Decline

Amidst a flurry of activity, the value of Starknet's STRK token has plummeted by more than half within just two days of its launch. The rapid decline comes as a result of significant sell-offs by both airdrop participants and large token holders.

Market Turmoil and Sell-offs

Since its debut, the STRK token has experienced a dramatic 60% drop in value, trading at less than $1.90 from its initial peak of $4.41 on February 20th, according to data from CoinGecko. The situation worsened as the token's price on Binance dipped below $1.90, marking a staggering 75.4% decrease.

Blockchain analysts at Lookonchain noted a concerning trend of sell-offs, with Ethereum infrastructure firm Nethermind offloading 3.41 million STRK tokens valued at over $6.7 million. They cautioned that further selling may be imminent, as Nethermind still holds a considerable $12 million worth of tokens.

Airdrop Hunters and Distribution Challenges

Additionally, airdrop hunters have played a significant role in exacerbating the token's decline. Instances were discovered of individuals consolidating millions of STRK tokens from multiple wallets into a single address, totaling millions of dollars in value. The STRK airdrop faced further complications, with some users expressing frustration over eligibility criteria and unlock schedules for token distribution.

Mixed Response and Continued Activity

Despite the tumultuous market conditions, Starknet's STRK token saw significant uptake during its launch, with millions of tokens claimed within the first hours of allocation. Presently, nearly 92% of the total available STRK tokens have been claimed, amounting to over $790 million in value.

Despite the price drop, Starknet's total value locked has surged by nearly 30% in just 24 hours, reaching $73.5 million, as reported by DefiLlama. The situation remains dynamic, with stakeholders closely monitoring developments in the Starknet ecosystem.