Starknet, the most exciting Layer-2 scaling solution for Ethereum, faced challenges over the past few months. DAU declined by 70%, and daily transactions hit a low of 98K. Market cap dropped from $27B to $13B, with a meager trading volume. People losing their money while investing in Starknet and most of the people tagged it a scam. Let's Find out the possible reasons....
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โก Starknet Daily Active Users (Monthly) Report
Over the past 180 days, Starknet experienced fluctuations in daily active users. A peak of nearly 2 million users occurred around March.However, by May 7, the user count declined sharply to approximately 436.6k. The Daily Active Users declined by a huge 70%.ย
๐ก Starknet Daily Transaction Countย
The graph represents Starknetโs daily transaction count over the last 180 days. Notable spikes in transactions occurred, with the lowest peak on May. On May 8, the transaction count exceeded 98K, which is much much lower than March peak of Daily Transaction which was recorded 1.1 Million, which is Declined by 90% from peak suggesting struggling phase of Starknet.ย
๐ Starknet Market Cap and Trading Volume
The decline of the price also indicated a robust crash in trading volume and Marketcap. At peak Starknet was trading at $27B FDV and by then the token trading volume was also skyrocketing.ย Surprisingly the Markecap just halved, Starknet now trading at $13B FDV and the token trading volume is mere $115M .ย
๐ต๏ธ StarkNet Financial Performance (Fees)
The most disappointed performance was in Fees, Starknet did only managed to collect $500 in Feesย on April 27th 2024, which is very much worse. While in peak the project mannaged $800k in Fees Collection single day a 160x from the recent low. The performance was so bad it fall 99.95% in Fees Collection just 2 months.ย
๐ก Starknet AFPU statsย
The Avarage Fees Per users is now sitting at $0.024 which strongly indicating decline in Transaction count, bridging volume and overall usage in the network. However when the project was in peak it collected almost 6$ AFPU, which now seems like a distant dream.ย
๐ข๏ธ Comparison with Other Chainsย
Comparison with other chains seems like unnecessary here. Starknets performance is so bad comparison with other chains is not possible at all. Arbitrum and Optimism collecting 80x and 22x more fees than Starknet as of writing. Daily Transaction count, AFPU, Trading Volume, Holders count everywhere Starknet clearly lagging and performance under Par.ย
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So, what's next ,ย
Drawing a conclusion isn't my job. Starknet really messed up, they need to somehow attract users to use their network by giving incentive or any marketing strategy. Starknet always been a great project and sometime these price action doesn't justify the potential due to various reasons. The positives bare Developers count and GitHub activity which aren't on users side.ย
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โก ๐ ๐ผ๐ฟ๐ฒ ๐๐น๐ฝ๐ต๐ฎ, ๐๐ผ๐ถ๐ป ๐จ๐, ๐๐ผ๐น๐น๐ผ๐ ๐จ๐, ๐ฆ๐ต๐ฎ๐ฟ๐ฒ ๐จ๐ โก @Techandtips123