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StarkWare, the company behind the Ethereum layer 2 scaling solution Starknet, plans to significantly enhance its network's performance and reduce fees in anticipation of increased blockchain activity and gas price spikes in the coming months.

Starknet aims to achieve a four-fold increase in transaction speed, surpassing the 1,000 transactions per second (TPS) milestone and potentially rivaling the likes of Solana, which typically processes between 800 and 1,050 non-vote TPS.

In addition to the speed improvements, Starknet intends to reduce its already low fees by five times, making it potentially the most cost-effective layer 2 solution compared to its competitors.

Starknet is a Validity Rollup Layer 2. It provides high throughput, low gas costs, and retains Ethereum Layer 1 levels of security

Starknet

Starknet to Quadruple Transaction Speed and Slash Fees by 5x in Three Months, Rivaling Solana

Roliefu

Starknet is yet another example of VC's dumping on retail investors; joining the ranks of EigenLayer, and Wormhole.

The price is down 72% since it's all time high which was at the token launch itself with a fully diluted market cap of $44B ($6.8B in circulation). On April 15th, investors and early contributors had their first unlock, between April 1st, and April 20, the price went from $2.16 down to $1.22, the next big unlock is happening today on May 12.

Overall, from this data I cannot conclude that VC's and the Core Team dumped on the community with definitive proofs unless they sniped the token at launch, but what I can conclude is that starting off with a massive FDV is not a good idea, even with great tech, the toxicity resulting from people losing more than half of their capital within less than 3 months is something that is very hard to recover from.

Was the airdrop the reason for such a failure? https://cointelegraph.com/news/starknet-airdrop-largely-successful-despite-controversies, it would appear this was the main factor contributing to selling pressure. However, why would the team not see this coming? They raised $282M from VC's prior to the listing, they should have kept a large portion of that treasury to prevent a price collapse from the selling pressure of the airdrop.

VC's involved on this raise are:
Pantera Capital
Paradigm
Sequoia Capital
Coinbase Ventures
Polychain Capital
Multicoin Capital
ConsenSys
Vitalik Buterin
Greenoaks Capital
IOSG Ventures
Tiger Global Management
Founders Fund
Naval Ravikant
Scalar Capital
Elad Gil
DCVC
Wing Venture Capital
Bossanova Investimentos
Semantic Ventures
Collaborative Fund
Floodgate
Metastable Capital
Intel Capital
Atomico
Bollinger Investment Group
Coatue Management
Alameda Research
Three Arrows Capital
Fred Ehrsam
Linda Xie

The investors that put their money during the seed round, Vitalik was part of that round but Pantera was the lead, and Polychain was also part. Polychain was also involved in the EigenLayer fiasco. Meanwhile Multicoin was also involved on the Wormhole disappointment. Overall, the Seed round was for an undisclosed valuation, but I would say probably around $40M which was a 1000X return from the $44B at launch, even after 72% decrease, it still is a 300X return.

Regardless, for me I have decided to avoid all web3 projects that are heavily funded by VC's prior to retail users having a chance to secure an allocation.

We are in a bull market, and this project is underperforming in terms of price action, can you imagine what will happen in a bear market??? I would avoid buying their token at all cost.

[Starknet](https://starknet.io/) is yet another example of VC's dumping on retail investors; joining the ranks of EigenLayer, and Wormhole. 

The price is down 72% since it's all time high which was at the token launch itself with a fully diluted market cap of $44B ($6.8B in circulation). On April 15th, investors and early contributors had their first unlock, between April 1st, and April 20, the price went from $2.16 down to $1.22, the next big unlock is happening today on May 12. 

Overall, from this data I cannot conclude that VC's and the Core Team dumped on the community with definitive proofs unless they sniped the token at launch, but what I can conclude is that starting off with a massive FDV is not a good idea, even with great tech, the toxicity resulting from people losing more than half of their capital within less than 3 months is something that is very hard to recover from.

Was the airdrop the reason for such a failure? https://cointelegraph.com/news/starknet-airdrop-largely-successful-despite-controversies, it would appear this was the main factor contributing to selling pressure. However, why would the team not see this coming? They raised $282M from VC's prior to the listing, they should have kept a large portion of that treasury to prevent a price collapse from the selling pressure of the airdrop.

VC's involved on this raise are:
- Pantera Capital
- Paradigm
- Sequoia Capital
- Coinbase Ventures
- Polychain Capital
- Multicoin Capital
- ConsenSys
- Vitalik Buterin
- Greenoaks Capital
- IOSG Ventures
- Tiger Global Management
- Founders Fund
- Naval Ravikant
- Scalar Capital
- Elad Gil
- DCVC
- Wing Venture Capital
- Bossanova Investimentos
- Semantic Ventures
- Collaborative Fund
- Floodgate
- Metastable Capital
- Intel Capital
- Atomico
- Bollinger Investment Group
- Coatue Management
- Alameda Research
- Three Arrows Capital
- Fred Ehrsam
- Linda Xie

The investors that put their money during the seed round, Vitalik was part of that round but Pantera was the lead, and Polychain was also part. Polychain was also involved in the EigenLayer fiasco. Meanwhile Multicoin was also involved on the Wormhole disappointment. Overall, the Seed round was for an undisclosed valuation, but I would say probably around $40M which was a 1000X return from the $44B at launch, even after 72% decrease, it still is a 300X return.

Regardless, for me I have decided to avoid all web3 projects that are heavily funded by VC's prior to retail users having a chance to secure an allocation.

We are in a bull market, and this project is underperforming in terms of price action, can you imagine what will happen in a bear market??? I would avoid buying their token at all cost.

Crypto Rookies

Starknet Changes Token Unlock Schedule for Early Investors and Funds.

Under the previous schedule, Starknet would unlock a third of the token supply for investment funds, approximately $1.3 billion worth of $STRK, on April 15th. However, this event garnered mixed reactions from both the community and retailers due to the staggering inflation rate of 200% in just 2 months.

In response to the feedback received, Starknet has rearranged the token unlock schedule to be slower, as follows:
64 million $STRK will be unlocked on April 15th instead of $1.3 billion.
Subsequently, the remaining 64 million tokens will be gradually released until the end of March 2025.

As a result, in 2024, Starknet will unlock approximately 580 million $STRK with an inflation rate of about 75%, rather than the initially planned 2 billion.

This information has also led to $STRK returning to $2. In terms of strategy, this is a fairly sensible decision by the Starknet team, although it demonstrates a lack of foresight in organizing tokenomics from the outset, which is also a concern for retailers.

Starknet Changes Token Unlock Schedule for Early Investors and Funds.

Under the previous schedule, Starknet would unlock a third of the token supply for investment funds, approximately $1.3 billion worth of $STRK, on April 15th. However, this event garnered mixed reactions from both the community and retailers due to the staggering inflation rate of 200% in just 2 months.

In response to the feedback received, Starknet has rearranged the token unlock schedule to be slower, as follows:
- 64 million $STRK will be unlocked on April 15th instead of $1.3 billion.
- Subsequently, the remaining 64 million tokens will be gradually released until the end of March 2025.

As a result, in 2024, Starknet will unlock approximately 580 million $STRK with an inflation rate of about 75%, rather than the initially planned 2 billion.

This information has also led to $STRK returning to $2. In terms of strategy, this is a fairly sensible decision by the Starknet team, although it demonstrates a lack of foresight in organizing tokenomics from the outset, which is also a concern for retailers.

Jethro

STARKNET - TECHNOLOGY IS BEING TURNED AWAY BY THE COMMUNITY?
Starknet is a layer2 solution utilizing zkRollup technology that allows developers to operate at scale while still ensuring security on Ethereum. Starknet is a layer2 utilizing a completely new programming language called Cairo - not compatible with EVM.

Starknet has raised approximately $300 million in total funding rounds, a significant figure with prominent VCs. However, the project is currently is being turned away by the community following an airdrop event that was perceived as stingy, leading to the ire of many previous supporters.

The number of active wallets on the Starknet chain has also noticeably decreased by over 90% following the airdrop event.

Despite its formidable backers, Starknet's trajectory may still hold promise and there are many positive aspects within the system. That's my personal perspective.

Starting to buy some STRK here. The general feeling about the airdrop is terrible. However, people said SUI and SEI were done, then it pumped.

Call me crazy, call me stupid. Target is $5. Let's go!

| DYOR | NFA |

Cyralyst

Quick update on $STRK

They're live, and to find on (almost) all better CEXs.

If you had a airdrop, please let me know. If someone has a clue if there was a private or seed sale and at what price that was, please let it know in the comments too.

Quick update on $STRK

They're live, and to find on (almost) all better CEXs. 

If you had a airdrop, please let me know. If someone has a clue if there was a private or seed sale and at what price that was, please let it know in the comments too.

Jeroen

StarkNet is a layer 2 scaling solution for Ethereum that utilizes zk-rollup technology. It was created by StarkWare Industries and allows decentralized apps (dApps) to run and scale infinitely while still benefiting from Ethereum's security. StarkNet uses a programming language called Cairo that enables developers to easily build and deploy dApps across industries.

Some key features of StarkNet are its ability to scale while retaining layer 1 security through off-chain computation and on-chain proof validation. It also enables interoperability between Ethereum projects and has a specialized trading version called StarkEx. StarkNet currently has a variety of projects across domains like DEXs (e.g. StarkSwap), lending protocols, infrastructure development, gaming/NFTs and more. With zk-rollup technology and developer support through Cairo, StarkNet represents a promising layer 2 scaling solution that can unlock infinite scaling for dApps on Ethereum.

James

Liquidity has always been a crucial issue in the world of DeFi in general. Ekubo employs a concentrated liquidity model, utilizing its unique designs to harness the benefits of Starknet. Ekubo Protocol envisions providing the best trading experience with the lowest fees.

Gas Fee Optimization: Ekubo is built to save transaction fees. It functions like a store where you can purchase multiple items at once but only pay one shipping fee. Instead of having to pay a separate package fee for each item you buy, Ekubo streamlines this process, allowing you to pay a single fee for all, thus saving costs for you.
Concentrated Liquidity: Liquidity providers can select specific price ranges to offer their assets. This benefits traders as they can access better prices due to increased liquidity within these price ranges.
Extensions: Ekubo enables third-party developers to create new liquidity pools without requiring approval. This facilitates the addition of new features such as connecting with oracles, which are data sources that assist in price updates or data.

For me, Ekubo Protocol still carries risks as the project is relatively new. However, Ekubo's development is rapidly progressing and has already captured a significant share of the trading volume within the Starknet ecosystem. It can be said that Ekubo Protocol has made swift strides in a short period. Nevertheless, this is still the early stage of Ekubo's development, so there may still be unresolved issues.

Liquidity has always been a crucial issue in the world of DeFi in general. Ekubo employs a concentrated liquidity model, utilizing its unique designs to harness the benefits of Starknet. Ekubo Protocol envisions providing the best trading experience with the lowest fees.

- Gas Fee Optimization: Ekubo is built to save transaction fees. It functions like a store where you can purchase multiple items at once but only pay one shipping fee. Instead of having to pay a separate package fee for each item you buy, Ekubo streamlines this process, allowing you to pay a single fee for all, thus saving costs for you.
- Concentrated Liquidity: Liquidity providers can select specific price ranges to offer their assets. This benefits traders as they can access better prices due to increased liquidity within these price ranges.
- Extensions: Ekubo enables third-party developers to create new liquidity pools without requiring approval. This facilitates the addition of new features such as connecting with oracles, which are data sources that assist in price updates or data.

For me, Ekubo Protocol still carries risks as the project is relatively new. However, Ekubo's development is rapidly progressing and has already captured a significant share of the trading volume within the Starknet ecosystem. It can be said that Ekubo Protocol has made swift strides in a short period. Nevertheless, this is still the early stage of Ekubo's development, so there may still be unresolved issues.

Here is a summary of pros and cons for StarkNet

Pros:

Utilizes ZK-STARK technology for valid and private off-chain computations

High transaction throughput and low fees via validity rollup architecture

Strong security as transactions are verified by incentivized validators

Supports wide range of dApps building on the ecosystem

Leverages Ethereum's security while achieving scalability

Cons:

Still depends on Ethereum, so inherits some limitations

Scarce details available on mining, consensus mechanism

Execution issues observed under high load during testing

Lacks some features expected in a trading platform

In summary, StarkNet shows strong potential as a scalability solution for Ethereum leveraging validity rollups and zero-knowledge proofs. It brings speed and efficiency gains while upholding Ethereum's security. However, as an early stage project, StarkNet needs further mainnet testing, ecosystem growth, and details on elements like token distribution. Concerns around centralization and limitations as a layer two may restrain its maximal potential. But its innovative architecture and impressive performance so far are promising.

Here is a summary of pros and cons for StarkNet 

Pros:

- Utilizes ZK-STARK technology for valid and private off-chain computations  

- High transaction throughput and low fees via validity rollup architecture

- Strong security as transactions are verified by incentivized validators

- Supports wide range of dApps building on the ecosystem 

- Leverages Ethereum's security while achieving scalability

Cons: 

- Still depends on Ethereum, so inherits some limitations

- Scarce details available on mining, consensus mechanism

- Execution issues observed under high load during testing

- Lacks some features expected in a trading platform 

In summary, StarkNet shows strong potential as a scalability solution for Ethereum leveraging validity rollups and zero-knowledge proofs. It brings speed and efficiency gains while upholding Ethereum's security. However, as an early stage project, StarkNet needs further mainnet testing, ecosystem growth, and details on elements like token distribution. Concerns around centralization and limitations as a layer two may restrain its maximal potential. But its innovative architecture and impressive performance so far are promising.

RayRay

Good or bad technology? Let’s check it out.

Starknet is a decentralized layer 2 network that enables Ethereum to scale securely and dapps to achieve unlimited scale for transactions and computation. It is built on StarkWare's STARK technology, which is a type of zero-knowledge proof that allows for secure and efficient computation on the blockchain.

Starknet uses a Validity Rollup  architecture, which means that transactions are bundled together and verified off-chain. This allows Starknet to achieve high throughput and low latency while maintaining the security of the Ethereum mainnet.

StarkNet's STARK technology is a type of zero-knowledge proof that is considered to be very secure. Zero-knowledge proofs allow for the verification of a computation without revealing the details of the computation. This makes StarkNet resistant to attacks and can be used to store and process sensitive data.

Security
Starknet is secured by a network of validators who verify transactions and proofs. The validators are incentivized to act honestly by being rewarded with STRK tokens.

Efficiency
Starknet is very efficient, which means that it can process transactions quickly and cheaply. The VR architecture allows Starknet to avoid the computational overhead of executing transactions on the Ethereum mainnet. This makes StarkNet a good choice for dapps that require high throughput and low latency.

Crypto Gad

In May 2022 Starknet successfully raised $100 million in their series D funding which valued the project at approximately $8 billion. While the exact current valuation is uncertain, it is likely to be around this figure. Therefore it is unlikely that the release of their token to the market will result in life changing gains for immediate buyers in the short to medium term.

However, Starknet is a very highly promising project with solid fundamentals. It possesses numerous credentials that suggest it will be a major success in the long run. The team behind Starknet is experienced, capable, and supported by top advisers. Their technology is efficient and already powering impressive decentralized applications like the DEX - ApeX. The StarkNet ecosystem is still in its early stages, but it has attracted many talented teams and individuals who are actively contributing to its growth and developing new tools. Additionally StarkNet's use of SNARKs technology gives it a competitive advantage over its closest competitors.

Another noteworthy aspect is the 4-year lock-up period for core contributors and investors, who account for 50% of the token supply. This demonstrates StarkNet's commitment to long-term dominance and stability.

Now for a game plan to buy $STRK tokens.. Considering the anticipated high valuation upon listing, I think a good strategy to accumulate $STRK tokens would be to wait for its likely airdrop release. This event will likely generate lots of sell pressure creating a dip in the token's price. Taking advantage of this opportunity in declining price is where I would deploy a DCA strategy to accumulate for the long-term.

Jeppopo

I came across StarkNet today and i must say it is a very interesting L2 scalable solution for the Ethereum network.

StarkNet, developed by StarkWare, is a promising L2 scalability solution for Ethereum, leveraging zk-STARKs, a type of zero knowledge proof, to scale up transaction throughput significantly while maintaining robust security.

StarkNet is built as a decentralized, permissionless protocol designed to offer the benefits of scalability without compromising Ethereum's security and decentralization principles. It uses a rollup centric approach, aggregating multiple transactions into a single proof, allowing for high speed and cost effective transactions.

One of StarkNet's key differentiators is its capacity to handle generalized computation, not just simple transfers, making it an attractive platform for decentralized applications  seeking scalability without sacrificing Ethereum's security.

I will keep on doing more research on it to see if it deserves 5 stars!

This project earns a 5-star rating for Proof of Execution.

The reason I decided to write about this project was that I noticed, while trading on ApeX (a simple and clean decentralized trading platform introduced by Jeppopo ), that it was "Powered by STARKWare."

With various L2s of different flavors emerging (or already released in this case), it's important for these platforms to demonstrate solid Proof of Execution use cases.

I've been trading on ApeX for about a month now, and although the platform lacks a few of the finer details that I appreciate in a trading platform, I've come to value the speed and execution of the platform. While most, if not all, of the credit, would go to ApeX, I'm sure none of it would be possible if it weren't running on a lightning-fast and reliable blockchain.

So, directly or indirectly, I must give StarkWare (StarkNet) two big Ape Thumbs Up!!

If you can run a decentralized leverage trading platform this flawlessly, then operating 99% of the other dApps on the StarkNet should be a cakewalk.

This project earns a 5-star rating for Proof of Execution.

The reason I decided to write about this project was that I noticed, while trading on ApeX (a simple and clean decentralized trading platform introduced by [Jeppopo](https://cyrator.com/post/646f18701083f5f9963aa573) ), that it was "Powered by STARKWare."

With various L2s of different flavors emerging (or already released in this case), it's important for these platforms to demonstrate solid Proof of Execution use cases.

I've been trading on ApeX for about a month now, and although the platform lacks a few of the finer details that I appreciate in a trading platform, I've come to value the speed and execution of the platform. While most, if not all, of the credit, would go to ApeX, I'm sure none of it would be possible if it weren't running on a lightning-fast and reliable blockchain.

So, directly or indirectly, I must give StarkWare (StarkNet) two big Ape Thumbs Up!!

If you can run a decentralized leverage trading platform this flawlessly, then operating 99% of the other dApps on the StarkNet should be a cakewalk.

D3Young

Fundraising

StarkNet has successfully secured investments from numerous market users through various funding rounds. The company has raised a total of $261 million in equity since its inception. Additionally, the Ethereum Foundation granted StarkNet $12 million to expand the Ethereum network.
StarkNet's funding rounds were as follows:

Seed Round (October 5, 2018): Raised $6 million (equity) from notable investors such as Pantera, Naval Ravikant, MetaStable, Floodgate, Polychain, Vitalik Buterin, Zcash Co-founder, Arthur Breitman, Da Hongfei, Bitmain, Elad Gil, Fred Ehrsam, and Linda Xie.
Series A (October 31, 2018): Raised $30 million (equity) from investors such as Paradigm (Led), Intel Capital, Sequoia, Atomico, DCVC, Wing, Consensys, Coinbase Ventures, Multicoin Capital, Collaborative Fund, Scalar Capital, and Semantic Joint Venture.
Series B (March 24, 2021): Raised $75 million (equity) from Paradigm (Led) and other investors.
Series C (November 26, 2021): Raised $50 million from Sequoia (Led) and other investors.
Series D (May 25, 2022): Raised $100 million, led by Coatue and Greenoks.

Paradigm, Sequoia, and Greenoks are investors who are famous for concentrated, long-term investments strategy. It is likely the reason why they did not rush in releasing tokens for the bull run in 2021, despite three years of development.

Regarding Roadmap, here is the plan for 2023

3/2023: Updated Cairo programming language 1.0
Q2/2023: Improved bandwidth.
Q3/ 2023: Reduced transaction costs.
Q4/2023: Improved block generation time to increase transaction speed.

One significant announcement from StarkNet is the Regenesis planned for 2023. This could lead to airdrops for users, similar to Optimism's Regenesis in late 2021 and airdrops in early 2022. We can expect that StarkNet's airdrop will happen in 2024, which aligns with Bitcoin Halving and could be a great strategic move!!!!!

**Fundraising**

StarkNet has successfully secured investments from numerous market users through various funding rounds. The company has raised a total of $261 million in equity since its inception. Additionally, the Ethereum Foundation granted StarkNet $12 million to expand the Ethereum network. 
StarkNet's funding rounds were as follows: 

- Seed Round (October 5, 2018): Raised $6 million (equity) from notable investors such as Pantera, Naval Ravikant, MetaStable, Floodgate, Polychain, Vitalik Buterin, Zcash Co-founder, Arthur Breitman, Da Hongfei, Bitmain, Elad Gil, Fred Ehrsam, and Linda Xie. 
- Series A (October 31, 2018): Raised $30 million (equity) from investors such as Paradigm (Led), Intel Capital, Sequoia, Atomico, DCVC, Wing, Consensys, Coinbase Ventures, Multicoin Capital, Collaborative Fund, Scalar Capital, and Semantic Joint Venture. 
- Series B (March 24, 2021): Raised $75 million (equity) from Paradigm (Led) and other investors. 
- Series C (November 26, 2021): Raised $50 million from Sequoia (Led) and other investors. 
- Series D (May 25, 2022): Raised $100 million, led by Coatue and Greenoks. 

Paradigm, Sequoia, and Greenoks are investors who are famous for concentrated, long-term investments strategy. It is likely the reason why they did not rush in releasing tokens for the bull run in 2021, despite three years of development. 


**Regarding Roadmap, here is the plan for 2023**

3/2023: Updated Cairo programming language 1.0
Q2/2023: Improved bandwidth.
Q3/ 2023: Reduced transaction costs.
Q4/2023: Improved block generation time to increase transaction speed.

One significant announcement from StarkNet is the Regenesis planned for 2023. This could lead to airdrops for users, similar to Optimism's Regenesis in late 2021 and airdrops in early 2022. We can expect that StarkNet's airdrop will happen in 2024, which aligns with Bitcoin Halving and could be a great strategic move!!!!!

Brian Pham

I believe that there are good micro reviews here already however, there are some notable aspects of this project that have not been mentioned by other analysts.

Firstly, the L2 solution was developed during the 2018 bear market, and despite the current bull market in 2021, they have yet to release their token. This is quite impressive and indicative of a long-term vision.

Additionally, the project has experienced a significant increase in users and transactions in recent months, as can be seen in the provided figure.

The ecosystem is also quite comprehensive, featuring a DEX (Starkswap, Jediswap), lending platform (zkLend), infrastructure (bridge, wallets, etc. , gaming/NFT, derivatives, and launchpad.

The lending segment is particularly important as it increases the efficiency of capital within the system and opens up possibilities for further development such as derivatives or farm leverage in the future. I will review the infrastructure portion in a forthcoming post.

In conclusion, this project exhibits a long-term vision and has a complete ecosystem that is currently leading to growth in users and transactions. It is very promising.

I believe that there are good micro reviews here already however, there are some notable aspects of this project that have not been mentioned by other analysts. 

Firstly, the L2 solution was developed during the 2018 bear market, and despite the current bull market in 2021, they have yet to release their token. This is quite impressive and indicative of a long-term vision. 

Additionally, the project has experienced a significant increase in users and transactions in recent months, as can be seen in the provided figure. 

The ecosystem is also quite comprehensive, featuring a DEX (Starkswap, Jediswap), lending platform (zkLend), infrastructure (bridge, wallets, etc. , gaming/NFT, derivatives, and launchpad. 

The lending segment is particularly important as it increases the efficiency of capital within the system and opens up possibilities for further development such as derivatives or farm leverage in the future. I will review the infrastructure portion in a forthcoming post. 

In conclusion, this project exhibits a long-term vision and has a complete ecosystem that is currently leading to growth in users and transactions. It is very promising.

Starknet STRK

Validity Rollup Layer 2