Starknet’s STRK token, launched on February 20 with much anticipation, has encountered a tumultuous journey marked by a swift decline in value. Since its inception, the token’s price has plummeted by over 50%, currently trading below $1.90 from its initial peak of $4.41 during the airdrop phase.
The sharp decline can be attributed to significant selling pressure exerted by Ethereum infrastructure firm Nethermind and opportunistic airdrop hunters, who have collectively offloaded millions of tokens onto the market. Notably, Nethermind’s sale of 3.41 million STRK, amounting to over $6.7 million, has exacerbated the downward spiral.
The token’s unlock schedule, which rewards Starknet investors and contributors with sizable amounts of STRK, has drawn criticism from market observers. Despite these challenges, Starknet‘s total value locked has surged to $73.5 million, indicating continued interest and participation in the platform’s ecosystem.
However, concerns persist regarding eligibility criteria for the airdrop, with some users reporting ineligibility despite meeting specified transaction thresholds. Additionally, dissatisfaction with the unlock schedule for token distribution has fueled apprehension among investors.
The situation underscores the inherent volatility of cryptocurrency markets and the importance of transparent communication and community engagement in navigating such challenges. As Starknet strives to regain stability amidst the sell-off, its ability to address investor concerns and uphold trust will be pivotal in determining its long-term success and viability in the competitive crypto landscape.
