After an extensive airdrop, the STRK token, native to Starknet, has commenced trading at $5.

Following a massive airdrop, the STRK token, native to Starknet, has commenced trading at $5. Starknet, an Ethereum rollup, distributed 728 million tokens to approximately 1.3 million addresses, marking it as the largest airdrop of the year. On the decentralized futures platform Aevo, pre-launch perpetual futures for the Starknet token, STRK, were initially trading at $1.80. The token’s value surged to $5 on Kucoin shortly after release, experiencing volatility and settling at $3.50 in the opening period.

Starknet’s STRK token boasts an initial total supply of 10 billion tokens, resulting in a fully diluted value (FDV) of $35 billion if the entire supply were in circulation. However, the actual market capitalization, calculated by multiplying the current circulating supply by the current price, is $2.32 billion.

Distribution details reveal that 50.1% of STRK’s supply is allocated to the Starknet Foundation for community airdrops, grants, and donations. Early contributors and investors will receive 24.68% of the total supply, while 32% is designated for StarkWare employees, consultants, and developer partners. The tokens will be unlocked monthly over 31 months, starting from April.

Starknet, functioning as a layer-2 network, utilizes zero-knowledge cryptography to enable decentralized applications on the Ethereum blockchain to scale effectively. This approach involves bundling transactions off-chain into a proof submitted to Ethereum, aiming to enhance transaction speed and reduce fees. Layer 2 networks, like Starknet, are constructed on top of a base blockchain (layer 1) to alleviate bottlenecks. Since its launch in November 2021, Starknet has accrued nearly $55 million in total value locked (TVL), according to DefiLlama.