Starknet's STRK token started trading at $5 immediately after the airdrop

Ethereum Starknet rollup has begun distributing 728 million tokens to approximately 1.3 million addresses in what is considered the largest airdrop of the year. Pre-launch perpetual futures of the Starknet token (STRK) are trading at $1.80 on decentralized futures platform Aevo. The token traded as high as $5 on Kucoin minutes after it was released and has since dropped to $2.30 after a volatile open.


STRK price chart. Source: KuCoin

With a total initial supply of 10 billion tokens, the fully diluted value (FDV), the theoretical market capitalization if its entire supply were in circulation, of STRK stands at $35 billion. However, the actual market capitalization, i.e. the current circulating supply multiplied by the current token price, is $2.3 billion.

50.1% of STRK's supply has been allocated to the Starknet Foundation for airdrops, grants, and community donations. 24.68% of the total STRK supply will be distributed to early contributors and investors, while 32% is given to StarkWare employees, consultants, and development partners.

Tokens will be unlocked monthly for 31 months, starting from April.

Starknet is a layer 2 network that uses zero-knowledge cryptography, allowing decentralized applications operating on the network to scale the Ethereum blockchain. It does this by wrapping offchain transactions into a proof sent to Ethereum, which in turn is said to process transactions faster and reduce the fees for computing them.

Layer 2 are networks built on the underlying blockchain platform, layer 1, to reduce congestion.

Starknet first went live in November 2021. Since then, Starknet has accumulated $55 million in total value locked (TVL), according to DefiLlama.


Total value locked of Starknet. Source: DefiLlama