In a recent development, Ethereum founder Vitalik Buterin unlocked 1.26 million Starknet (STRK) tokens valued at about $470,000. While the founder’s action has caused an uproar in the crypto community, STRK’s price is shockingly displaying a bullish outlook.
Starknet is an Ethereum Layer-2 network that enables the scaling of Decentralized Applications (dApps) without compromising security.
Vitalik Buterin and Starknet: The Link
Vitalik Buterin has been a strong proponent of the Starknet project. As revealed by Wu Blockchain, Vitalik is one of Starknet’s early investors. He is currently holding 2.113 million STRK tokens valued at approximately $781,000.
According to data from the blockchain analytical platform Arkham Intelligence, Vitalik’s STRK holdings are now the second biggest asset in his crypto portfolio, next to Ethereum (ETH). Other notable cryptocurrencies in Vitalik’s portfolio include Small Doge (SDOG), Degen (DEGEN), and Dogecoin (DOGE).
Vitalik’s latest token unlock allows previously locked tokens to become accessible by the market. In May, he received STRK tokens worth $1 million for his contribution to the protocol. This was shortly after he published a review of Starknet, highlighting its capabilities for smart contract development.
Despite their differences, Vitalik Buterin’s investment in Starknet further strengthens the link between the protocol and Ethereum. However, Vitalik’s support does not guarantee Starknet’s success in the crypto market.
The project must still prove its capabilities and navigate complexities in the Layer 2 solution market.
Starknet Sees Uptick Despite Selloff FUD
Vitalik’s public support and investments as an early investor were seen as an endorsement of the project. Likewise, the recent unlocking of the 1.26 million STRK token has raised concerns about increased supply over demand.
Usually, the impact of token unlocks on a coin’s price can be profound. The release of a substantial volume of tokens can inflate supply, potentially resulting in price declines. STRK, however, has reacted positively to Vitalik’s 1.26 million tokens unlock, probably because of the small quantity.
At press time, STRK’s price was trading at $0.3857, up by 3.4% in the past 24 hours. The trading volume increased by 65% in the last 24 hours to $65 million, indicating increased investor interest.
This increase amid a broader market decline can help solidify Starknet’s increasing growth among rivals. The surge in STRK’s price follows Starknet’s announcement to permit token holders to vote on the mainnet for governance issues.
Vitalik Buterin’s Token Transfer History
Vitalik Buterin recently grabbed attention from the crypto market following a series of ETH transactions.
In August, the Ethereum co-founder transferred 800 ETH, valued at about $2.01 million, to a multi-signature wallet. Shortly later, the wallet turned 190 ETH into 477,000 USDC, prompting speculation concerning the purpose of these movements.
Before this transaction, Vitalik transferred 600 ETH to Coinbase. This transaction coincided with a sudden crash in the crypto market, with ETH dropping below $1,700.
While no rationale was given behind the recent transfers, experts think Buterin might be considering another substantial sell-off with the unlocked STRK.
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