Starknet’s STRK token faces sharp decline

Amid the flurry of activity, the value of Starknet’s STRK token plummeted by more than half within two days of launch. The sharp drop comes as a result of significant selling by both airdrop participants and large token holders.

Market chaos and selling

The STRK token has experienced a dramatic 60% decline in value since its debut, trading below $1.90 from an initial high of $4.41 on February 20, according to data from CoinGecko. The situation worsened when Binance’s token price fell below $1.90, a whopping 75.4% decline.

Blockchain analysts at Lookonchain noted the selling trend, with Ethereum infrastructure company Nethermind offloading 3.41 million STRK tokens worth more than $6.7 million. They warned that further sales could be imminent as Nethermind still holds a significant $12 million worth of tokens.

Airdrop Hunters and Distribution Issues

Airdrop hunters also played a significant role in exacerbating the token’s decline. Instances have been discovered where individuals have consolidated millions of STRK tokens from multiple wallets into a single address, resulting in a total value of millions of dollars. The STRK airdrop faced further complications, with some users complaining about the eligibility criteria and token distribution unlock schedule.

Mixed reaction and ongoing activity

Despite turbulent market conditions, Starknet’s STRK token saw significant uptake during launch, with millions of tokens claimed within the first hour of allocation. Currently, nearly 92% of the total available STRK tokens have been claimed and are valued at over $790 million.

Despite the price drop, the overall locked value of Starknet increased by nearly 30% in just 24 hours, reaching $73.5 million, as reported by DefiLlama. The situation remains dynamic as stakeholders closely monitor developments in the Starknet ecosystem.