The distribution of 728 million STRK tokens to approximately 1.3 million addresses has become the largest airdrop of the year. Pre-launch perpetual futures of Starknet's token were at $1.80 on the decentralized futures platform Aevo. Within minutes of the release of STRK token, the price surged to $5 but has since experienced volatility, falling back to $3. However, the market cap holds above the $2 billion mark.
STRK Token Gains The Spotlight
Major market players, including Amber Group, Wintermute, and Flow Traders, are making significant investments in Starknet's STRK token. Amber Group has acquired 1 million $STRK tokens, showing confidence in Starknet's ecosystem, and deposited 200,000 $STRK tokens on Bitfinex. Wintermute and Flow Traders have also joined the market, investing 2 million and 2.5 million $STRK tokens respectively, adding liquidity to the ecosystem, boosting the token's value.
With an initial total supply of 10 billion tokens, STRK's fully diluted value (FDV) reaches $35 billion, representing the theoretical market capitalization if the entire supply were in circulation. However, the current market capitalization, calculated by multiplying the circulating supply with the current price, stands at $2.18 billion.
After being listed on Binance, STRK surged past $7 and exceeded $5 on KuCoin. CoinMarketCap data indicated STRK trading within the range of $3 to $4.
Starknet, the decentralized platform behind STRK, has begun allocating tokens for airdrop application contracts, crucial for distributing tokens among its ecosystem stakeholders. Noteworthy among these are the STRK Provisions Claim contracts on Starknet, Ethereum, GitHub, and StarkEx, each serving specific roles in ensuring fair token distribution.
Starknet Foundation's Token Provision Update
The Starknet Foundation has released details of its token provision, introducing a dedicated portal for eligibility checks and STRK token distribution. Over 700 million STRK tokens will be distributed across nine categories for governance and transaction fees, with staking planned for the future.
Starknet is a leading Ethereum Layer 2 (L2) platform that introduced zero-knowledge rollup (ZK-rollup) technology. This protocol enables off-chain processing of transactions and smart contract functions, with cryptographic proofs submitted to Ethereum, ensuring security guarantees from its blockchain.
The protocol previously addressed concerns raised by Starknet and Ethereum community members regarding the STRK airdrop eligibility criteria. Starknet's active users increased in recent weeks as prospective STRK recipients sought eligibility for the campaign
It is to be noted that 50.1% of STRK's supply is designated for the Starknet Foundation for community airdrops, grants, and donations. Early contributors and investors will receive 24.68% of the total supply, and 32% is allocated to StarkWare employees, consultants, and developer partners. Token unlocking will occur monthly over 31 months, commencing in April.
With Starknet's STRK token gaining momentum, trading setup rises about its trajectory in comparison to tokens like $TIA and $ARB. Market analysts and investors are actively evaluating whether STRK will follow the paths of these tokens or make a unique journey in the coming days.