Starknet Unlocking Speeding Up: Will $27.75M STRK Unlock Dent STRK Price?
Token unlocks have been wrecking STRK price, and this morning, Starknet crypto released 64 million STRK. Will STRK price fall further?
Starknet is one of the multiple layer-2 scaling solutions for Ethereum. Unlike Arbitrum or Base, the platform uses zk-rollup technology, enabling faster and cheaper transaction processing and maintaining security.
According to L2Beat, Starknet currently manages over $744 million of assets and continues to grow after integrating Dencun and Blobs early this year.
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STRK Price Analysis: Starknet is Under Pressure From Unlock Schedule
While the platform is growing, helping process transactions cheaply while being interoperable with the mainnet, STRK prices have been struggling for traction.
The latest market data from Binance shows that STRK is down -95% from its February highs of $7.5.
( STRKUSDT )
The good news is that the token has recovered after the hammering of the last nine months.
Presently, STRK has found support at $0.34 but needs to build on recent gains and break $0.48 for prices to turn the corner and break away from the consolidation.
Although technical analysis might support buyers, at least looking at price gains over the past two weeks, fundamental factors might present headwinds.
DISCOVER: The Hottest Upcoming Binance Listings in 2024 Meme Coin Market
64 Million STRK Released Amid Tokenomic Changes
Earlier today, Starknet released 64 million worth over $27.75 million.
The bulk release could negatively impact prices since every cliff release, as this was the case, translates to higher supply, diluting the market value.
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Though prices might slide, shaving gains this week, Starknet recently intervened and changed its tokenomics, especially its STRK release schedule.
To understand why, you have to look at Starknet’s tokenomics.
The project initially minted 100 billion STRK. Under the new plan, they will unlock 64 million STRK every month until March 2025.
Afterward, they will accelerate to 127 million STRK every month for two years.
Important update:
After listening to feedback from ecosystem friends and collaborators, we are changing the lockup schedule for StarkWare’s early contributors and investors to make it more gradual.
We value this community and want to earn its trust by building great tech that…
— StarkWare 🐺🐱 (@StarkWareLtd) February 22, 2024
The objective is to balance liquidity while ensuring prices remain stable. Although this would pressure prices in the short term, STRK would benefit in the long term.
By the end of 2024, 580 million STRK in the hands of early contributors and investors will be unlocked.
The amount hitting supply will be far fewer than the 2 billion originally planned.
While the revised tokenomics might provide some relief, traders expect the unlock schedule to remain a headwind in the short-term.
The introduction of staking on November 26 provides an opportunity for STRK holders to earn extra rewards. Those with at least 20,000 STRK can qualify as validators.
STRK staking launch on Mainnet: November 26th.
After extensive testing on Sepolia, we are now ready to introduce the first phase of STRK staking on Starknet Mainnet. Everyone will be able to participate by:
> Becoming a Validator: This will require a minimum stake of 20,000 STRK… pic.twitter.com/WVCJzhVDaP— Starknet 🐺🐱 (@Starknet) November 12, 2024
The more validators there are, the faster the extra supply will be mopped from circulation, steadying prices.
DON’T MISS: The Next Cryptocurrency to Explode in 2024
Freedum Fighters Taking Off: Over $500,000 Raised
Amid Starknet’s developments, attention is shifting toward Freedum Fighters (DUM), a meme coin blending humor, politics, and finance.
Freedum Fighters integrates a “PoliFi” model, taking advantage of the last hotly charged campaign in the United States.
In the ongoing presale, Freedum Fighers has raised over $506,000, drawing the interest of investors who desire more.
Each token is selling for $0.00008. There is no limit to how much you can buy.
Buy DUM using USDT, USDC, SOL, ETH, and even BNB before prices increase in 48 hours.
DUM, the utility meme coin, and current, is key to the platform. While Freedum Fighters offers more of a community-driven, story-centered platform, active participants are handsomely rewarded.
From the DUM tokenomics , 20% of all tokens will be distributed to stakers as rewards. The goal is to foster long-term growth while encouraging participation.
Once DUM lists, analysts expect prices to rally, perhaps even outperforming STRK.
VISIT FREEDUM FIGHTERS HERE
EXPLORE: Bitcoin Cooling Off – Prices Might Correct, But Not to $70,000: Here’s Why
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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