The Starknet token (STRK), associated with Ethereum‘s Layer-2 network, has witnessed a drastic decline in its valuation. The nosedive ensued after infrastructure firm Nethermind and various airdrop recipients offloaded their holdings, resulting in more than a 50% reduction in the token’s price. CoinGecko data revealed that STRK plummeted to under $1.90, a stark contrast from its February 20 high of $4.41, which coincided with an airdrop to blockchain ecosystem users.
Price Drop Following Exchange Listings
STRK’s market entry had initially driven its price to a peak of $7.70 on Binance. However, the current value has tumbled significantly, pointing to a sharp 75.4% drop. Blockchain data analytics firm Lookonchain has tracked the token’s declining trend since it hit the market.
Nethermind has reportedly liquidated 3.41 million STRK tokens for a total of $6.7 million. Lookonchain warned that further sales might follow, given the firm’s remaining hold of $12 million worth of tokens. Additionally, airdrop hunters have been observed consolidating their wallets. In one instance, 1.2 million STRK tokens were moved to a single address from roughly 1,800 wallets.
Controversy Surrounds Airdrop Distribution
Questions have arisen over the fairness of Starknet’s STRK airdrop after a developer highlighted that many GitHub accounts linked to airdrop hunters were set up in anticipation of the event. Starknet users who had not met the November 15 snapshot criteria also raised grievances about their exclusion from the airdrop. Furthermore, concerns were raised over STRK’s unlocking program designed to reward Starknet investors and contributors with a substantial allocation of the token supply.
Despite these challenges, the STRK airdrop drew considerable attention upon launch. Voyager data indicates that nearly 92% of the total distributable tokens have been claimed, amounting to $790 million of the 430 million STRK tokens. In the face of the price dip, Starknet’s total locked-in value surged by approximately 30% within a day, reaching $73.5 million, as reported by DefiLlama.