Vitalik Buterin’s Latest Crypto Bet: Why Starknet is Worth Watching

The post Vitalik Buterin’s Latest Crypto Bet: Why Starknet is Worth Watching appeared first on Coinpedia Fintech News

Amid the heightened fear of further crypto capitulation in the coming weeks, some altcoins, led by Starknet (STRK) are gradually presenting opportunities for long-term investors to make more discounted purchases. The anticipated reversal in Bitcoin (BTC) dominance will accelerate the ongoing crypto cash oration to the altcoins. 

Moreover, the approval of spot Ether and Solana ETFs amid crypto regulatory clarity in the United States, among other jurisdictions, has set the pace for mainstream adoption of altcoins. 

Ethereum’s L2 Starknet Emerges as 2nd Option for Vitalik’s Investment Portfolio 

Starknet (STRK), a permissionless decentralized ZK-rollup based on the Ethereum (ETH) network, has emerged as the second-highest on-chain investment for Vitalik Buterin. According to on-chain data analysis, Buterin’s associated address has unlocked 1.268 million STRK, worth about $470k. 

As a result, Buterin currently holds a total of 2.11 million STRK units, worth about $809k. Buterin’s STRK holdings are the second largest, with the Ether holdings worth more than $600 million.

Recently, Buterin clarified that he has never liquidated his top crypto portfolios unless donations to web3 projects, among others. As a result, it is safe to assume that Buterin will remain a major holder of STRK in the future.

Growing Web3 Ecosystem 

The Starknet network has attracted dozens of DeFi platforms seeking to build on the Ethereum ecosystem. As of this report, the young project had a total value locked of about $233 million and a stablecoins market cap of around $87 million 

Remarkably, Starknet’s TVL has grown from below $50 million to the current value year-to-date, suggesting rising web3 activity. Some of the top DeFi projects leveraging the Starknet protocol include Ekubo, Nostra, zkLend, and Nimbora, among others.

STRK Price Ready to Rebound

From a technical standpoint, STRK’s price has been forming a potential reversal pattern after being trapped in a falling trend for the past five months. The mid-cap altcoin, with a fully diluted valuation of about $3.8 billion and a daily average trade volume of around $89 million, has formed a possible triple bottom in the daily time frame coupled with rising divergence on the Relative Strength Index (RSI).