The value of Ethereum’s layer-2 network Starknet token has experienced a significant drop of almost 60% within two days. The token, known as STRK, is now trading below $1.90, down from its peak of $4.41 on February 20 when it was airdropped to select users of the blockchain. Following its listing on Binance, STRK briefly reached $7.70 but has since dropped by 75.4% to its current value.
Analysts from Lookonchain noted that the price of STRK has been steadily declining since its launch. They discovered that Nethermind, an Ethereum infrastructure firm, sold 3.41 million STRK tokens worth over $6.7 million and cautioned that further selling may occur as the company still holds over $12 million worth of the token. Additionally, Lookonchain found evidence of a second instance where an airdrop hunter consolidated wallets, transferring 1.2 million STRK tokens worth $2.4 million from approximately 1,800 separate wallets to a single address.
Earlier, Lookonchain also identified a similar occurrence involving 1.4 million airdropped STRK tokens worth about $3 million being sent to a single address from nearly 1,400 wallets. Prior to the airdrop, Banteg, a developer from Yearn.finance, had raised concerns that more than 700,000 wallets out of the 1.3 million eligible for airdropped STRK were linked to GitHub accounts controlled by airdrop hunters.
The STRK airdrop faced additional challenges as some Starknet users claimed they were ineligible for the distribution despite having made significant transactions. To qualify, users were required to have held at least 0.005 Ether (ETH), equivalent to around $10, at the time of a snapshot taken on November 15, 2023. Others criticized the unlock schedule for STRK tokens, which would reward Starknet investors and contributors with 1.3 billion STRK, accounting for 13% of the total supply, approximately two months after the launch.
Despite the decline in STRK’s price, the total value locked in Starknet stands at $73.5 million, experiencing a nearly 30% increase in just 24 hours, according to DefiLlama.