Newton Gitonga
While the cryptocurrency market continues to underperform in September, Starknet has seen intensified staking activity.
The project’s latest post shows total staked STRK increased by 23% this month to over 571 million coins, worth roughly $70.9 million at market price.
total STRK staked grew +23 % this month.
higher I guess.
The amount represents approximately 14% of the altcoin’s circulating supply.
That’s a crucial milestone since Starknet launched staking late last year.
Moreover, the breakthrough comes days after the Ethereum-based L2 rolled out Bitcoin staking on its mainnet.
Increased staking signals the community’s dedication to removing STRK coins from circulation.
Strong momentum amid market volatility.
The soaring staking within the Starknet ecosystem coincides with broader market headwinds.
The digital assets sector has seen wild price swings this month, with bears limiting upside actions.
Nevertheless, Starknet displays resilience as more individuals commit their assets to the platform.
The 23% uptick in staking shows users adopting a long-term approach, likely prioritising network incentives and governance perks over short-term price action.
Such trends could enrich STRK’s market dynamics and stabilise the token through reduced selling pressure.
STRK price outlook
Starknet’s native token mirrored broad market movements.
It has lost roughly 12% on its monthly chart to trade at $0.1204.
STRK’s bearish outlook coincides with broad market weakness.
Digital assets started the week on a bearish foot as post-rate cut hype faded.
Now, projects are repositioning for another leg up, especially ahead of “Uptober.”
While staking isn’t (directly) correlated to price growth, it can enhance STRK’s tokenomics.
Locking a substantial amount of supply means fewer coins available for trading.
That can lead to a supply squeeze amid demand resurgence and stable price actions.
Backend developer Greek Talk commented on Starknet’s surging staking:
What we’re seeing right now is early believers locking in their positions and setting the stage for what could be one of the most powerful scarcity-driven cycles in crypto. The market is often slow to catch on, but numbers don’t lie.
STRK remains poised for substantial recoveries amid broader rallies.
Impressive staking returns might attract more participants into the Starknet ecosystem.
What is next for Starknet
The L2 is experiencing notable momentum amid ecosystem maturity.
Recently, Starknet launched the Grinta upgrade in its pursuit of decentralisation.
With increasing user activity, Starknet might consider introducing more incentives to attract more users.
The community can expect upgrades like enhanced yield mechanisms to increase staking returns and governance features that offer users more control.
Also, developers may accelerate to make the L2 cheaper and faster for daily transactions.
Such technical upgrades would likely boost STRK demand as more applications launch and user engagement heightens within the Starknet ecosystem.
The post Starknet staking soars 23% as STRK participation hits a new high appeared first on Invezz
