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STRK Starknet Price Crash: Between Airdrop and Massive Sell-Off

The crypto world was again shocked by the fall in the price of Starknet's STRK token, an Ethereum layer-2 network, which experienced a drastic decline of more than 50% in just two days. This phenomenon attracted the attention of many parties and sparked speculation about the future of this crypto.

Starknet's STRK token price saw a sharp decline of nearly 60%, trading below $1.90 from its Feb. 20 peak of $4.41, when an airdrop was conducted to some blockchain users. The decline was compounded by a sell-off by Ethereum infrastructure firm Nethermind and airdrop hunters who sold millions of dollars worth of tokens obtained from airdrops.

Analysis from Lookonchain revealed that Nethermind sold 3.41 million STRK worth more than $6.7 million, and still holds more than $12 million worth of tokens, raising concerns of further sales. Additionally, there are also airdrop hunters who consolidate wallets to sell large amounts of STRK, adding to the selling pressure in the market.

Even though the STRK price saw a decline, Starknet's Total Value Locked (TVL) actually saw a significant increase, reaching $73.5 million, up almost 30% in 24 hours. This shows that despite token price volatility, the value locked in the Starknet protocol continues to show growth, signaling a certain level of trust from the community in the Starknet ecosystem.

STRK Price Analysis and Future Prospects

Price analysis shows two possible scenarios for STRK. In a bullish scenario, the price may continue moving sideways and form a horizontal range between $1.70 and $2.20 before starting the next uptrend. However, considering the fundamentals, there is also a possibility of a further 50% decline, especially if large token holders continue to take profits, which could bring the price down to around $0.84.

This STRK Starknet price crash reminds us of the volatility of the crypto market and the importance of doing research before investing.$BNB $FROM $BTTC