@Starknet's $STRK token has dropped about 41% over the past week, more than any other major cryptocurrency. The sell-off follows a sharp rally triggered by the network's plan to explore a mov
@Starknet's $STRK token has dropped about 41% over the past week, more than any other major cryptocurrency. The sell-off follows a sharp rally triggered by the network's plan to explore a move from an Ethereum layer 2 to its own layer 1 blockchain. Despite the decline, $STRK is still up roughly 83% over the past month.
The rally began after Starknet said on October 8 that it is considering a move from an Ethereum ($ETH) Layer 2 to a standalone Layer 1. The team said the change would let Starknet become the first fully quantum-resistant network, with 2027 as the target.
According to Crypto Briefing, the plan was presented by StarkWare CEO Eli Ben-Sasson at the Token2049 conference. The outlet reported that $STRK gained about 322% over the 30 days to October 11-12, outpacing both Bitcoin and Ether. Crypto Briefing also noted that the proposal still needs technical work, governance approval and community feedback, and that no launch timeline has been confirmed.
TokenPost reported that $STRK rose 122% between October 8 and October 11, closing at $0.1232, before falling nearly 30% from that peak by October 13. Network activity followed the same pattern. Active addresses fell 63% and new wallets fell 81% from their October 11 highs, according to the same report.
Several factors appear to be weighing on the price. A 127 million $STRK token unlock was scheduled for October 15, and CoinMarketCap analysis attributed part of the decline to profit taking and leveraged positions being unwound ahead of the unlock. The same analysis found no credible reports of a security breach, governance crisis or technical failure during the period.
Governance is also in focus. Traders Union reported that the Starknet community began a seven-day, non-binding vote on whether to move from Ethereum layer 2 to an independent layer 1. A vote in favour would trigger research rather than approve an immediate transition, according to CoinMarketCap's summary of the poll.
For traders, the key point is that the layer 1 shift remains an idea under review. Going independent would also leave Starknet responsible for its own security, a heavier burden than relying on Ethereum, as noted by Cryptopolitan. Until a formal proposal and timeline emerge, price action is likely to remain sensitive to governance updates and broader altcoin sentiment.
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