Weekly Token Unlocks: STRK Unlocks 4% of Circulating Supply, But Pushes Price Up
- Core View: Two major Ethereum Layer 2 projects, Starknet and Arbitrum, are about to undergo large-scale token unlocks, releasing 130 million and 95.87 million tokens respectively, with a total value of approximately $20.9 million. This could potentially put short-term pressure on supply and price.
- Key Elements:
- Starknet is unlocking 130 million tokens in this event, worth approximately $7.19 million. It utilizes zk-STARKs technology to enhance Ethereum's transaction speed and reduce fees.
- Arbitrum is unlocking 95.87 million tokens in this event, worth approximately $13.71 million. As an Optimistic Rollup, it aggregates off-chain transactions to improve scalability.
- Both are core Ethereum Layer 2 solutions, but Starknet is based on zero-knowledge proofs, while Arbitrum relies on fraud proofs, representing different technical approaches.
- Arbitrum's native token, ARB, allows holders to participate in governance, including proposing and voting on protocol upgrades.
- Large-scale token unlocks typically mean increased circulating supply, which may trigger short-term market volatility. Attention should be paid to the potential impact of selling pressure on prices.
Starknet
Project Twitter: https://twitter.com/Starknet
Project Website: https://starknet.io/
Tokens Unlocked This Time: 130 million
Value of Unlocked Tokens: Approximately $7.19 million
Starknet is a Layer 2 solution for Ethereum, utilizing zk-STARKs technology to make Ethereum transactions faster and cheaper. Starknet's parent company, StarkWare, was founded in 2018 and is headquartered in Israel. Its main products include Starknet and StarkEx. By using STARKs, Starknet verifies transactions and computations without requiring all network nodes to validate every operation. This significantly reduces computational burden and increases blockchain network throughput.
Arbitrum
Project Twitter: https://twitter.com/arbitrum
Project Website: https://arbitrum.io/
Tokens Unlocked This Time: 95.87 million
Value of Unlocked Tokens: Approximately $13.71 million
Arbitrum is an Ethereum Rollup designed to improve Ethereum's scalability. It aggregates and processes off-chain transactions before submitting a single transaction to the Ethereum mainnet. This allows users to enjoy faster and cheaper transactions while still benefiting from the security and decentralization of the Ethereum network. The native token of Arbitrum is ARB. ARB holders can participate in the decision-making process, such as proposing and voting on protocol upgrades or changes.
