Starknet’s STRK token has had a massive run over the past few weeks, but the latest data from Santiment indicates the rally may be losing steam.
The token surged 122% between October 8 and October 11, closing at $0.1232. It is currently up by 210% in four weeks. However, the excitement around the rally appears to be cooling, with network activity dropping alongside the price.
Pullback Ahead?
Santiment recorded nine spikes in STRK’s social dominance. The biggest occurred on October 8. Interestingly, sentiment was still slightly negative that day, at -0.51. That quickly changed as the rally picked up pace. By October 11, sentiment had jumped to +12.44, its highest reading during the move. The week’s sentiment score also climbed to 38.46, more than double any full week in the previous six months.
Network activity peaked on the same day as the price. Active addresses reached 2,823, while 1,166 new wallets joined the network. That was around 13x the recent average for new wallets. But the numbers fell sharply over the next two days. By October 13, active addresses were down 63%, and new wallets had dropped 81%. STRK’s price had also fallen almost 30%.
Santiment also found that the 10 largest STRK addresses hold around 7.09 billion tokens, which is their highest combined balance since April. That could offer some support if selling pressure continues. Meanwhile, traders now have another event to watch. Around 127 million STRK tokens, equal to nearly 1.7% of the circulating supply, unlocked on October 15. With social sentiment cooling and network activity falling, STRK could face further downside. The continued accumulation by large holders could still help limit the damage.
L1 Pivot Amid Quantum Concerns
The rally may have been driven by a major shift in Starknet’s long-term plans. On October 8, the project said it was actively considering becoming a Layer 1 blockchain instead of remaining an Ethereum Layer 2 network. The proposal also included plans to make it fully quantum-resistant by 2027.
Interest grew further after StarkWare chief Eli Ben-Sasson warned that quantum risks may emerge sooner than expected.
“Starknet is based on ZK-STARKs, it has crypto agility, and an active migration roadmap to PQS. But as an L2, Starknet relies on the security of its L1, Ethereum. We’ll need Ethereum to become quantum-safe and AI-safe, and we’ll need it to happen fast. Real fast. What happens if it doesn’t? We’re considering multiple options, including becoming an L1.”
Starknet, however, is yet to confirm whether it will move away from its current setup.
The post Starknet’s STRK Climbs 210% in Four Weeks, but Can the Rally Last? appeared first on CryptoPotato.
Source: https://cryptopotato.com/starknets-strk-climbs-210-in-four-weeks-but-can-the-rally-last/
