- The increase in TVL suggested that the project had regained market confidence.
- STRK’s price could continue to fall unless ETH experiences a major rebound.
The total value locked (TVL) of Starknet [STRK] increased by 194%, according to facts Received AMBCrypto from L2BEAT. At the time of writing, Starknet’s TVL was $1.32 billion.
The increase in TVL meant the Ethereum [ETH] Layer 2 had become the fourth largest L2 among the already launched projects on the blockchain.
The TVL measures the value of assets locked or staked on a particular blockchain network. For Starknet, this growth can be considered impressive.
The trend has only gotten better
This was because it only launched on Mainnet on February 14th. Starknet’s launch was successful as it rewarded its early adopters with over 700 million STRK tokens.
Source: L2BEAT
However, the introduction was not without controversy, as AMBCrypto previously reported.
Over the past week there have been accusations that the Starknet team has dumped the community by selling a ton of their tokens. This caused STRK’s price to fall below $2.
There was also an error in the issuance of tokens.
Furthermore, the increase in TVL showed that the tides may have changed. If the TVL had fallen, it would have suggested that market participants were cautious about adding liquidity to the Starknet.
Therefore, the increase implied that participants perceived the L2 as reliable.
If the TVL continues to rise, STRK could have a chance to rise higher than the press time value. However, the TVL alone cannot determine whether the price of STRK will increase or not.
That’s why we took the time to look at others statistics.
Can STRK stop its losing streak?
One of the metrics we took into account was development activity. Development activity indicates whether a project is shipping new features on its network. This is done by monitoring the public GitHub repositories on the network.
When the metric increases, it means developers are launching new features.
Thus, the decline in Starknet development activity suggests that developers’ code commits have slowed. The reading of the metric can be considered a bearish sign.
However, that doesn’t quite mean that STRK was headed for ruin, even though it was one of the biggest losers of the week just ended.
When it comes to the stablecoin offering on the network, Santiment’s on-chain data shows that there has been some improvement. At the time of writing, the supply of stablecoins owned by whales had increased to 53.99.
The increase here suggests that the whales had enough purchasing power, which could be enough to trigger a jump in the STRK price.
Source: Santiment
Realistic or not, here is STRK’s market cap in ETH terms
In the future, the price of STRK could stabilize or show a significant increase. One of the reasons may be related to the change made as per the token unlocking scheme.
Another factor that can affect the price is ETH. If ETH rises towards $3,500, betas like STRK could also rise.