Starknet's STRK token has experienced a significant rally over the past four weeks, gaining 210% in value. The token surged 122% between October 8 and October 11, closing at $0.1232.
According to data from Santiment, the momentum may be moderating. Network activity peaked alongside the price on October 11, with active addresses reaching 2,823 and 1,166 new wallets joining the network—approximately 13 times the recent average. However, these metrics declined sharply in the following days. By October 13, active addresses fell 63% and new wallet additions dropped 81%, while STRK's price had declined nearly 30%.
Catalysts and Headwinds
The rally appears linked to Starknet's announcement on October 8 that it is actively considering transitioning from an Ethereum Layer 2 network to a standalone Layer 1 blockchain. The proposal includes plans to make the network fully quantum-resistant by 2027. StarkWare chief Eli Ben-Sasson subsequently warned that quantum risks may emerge sooner than expected.
Sentiment metrics tracked a nine-spike pattern in STRK's social dominance during the rally period, with sentiment reaching its peak of +12.44 on October 11, marking the highest reading during the move. However, sentiment has since cooled.
Supply Pressures and Support
On October 15, approximately 127 million STRK tokens—nearly 1.7% of the circulating supply—unlocked. The 10 largest STRK addresses collectively hold around 7.09 billion tokens, their highest combined balance since April, which could provide support against further selling pressure.
Starknet has not yet confirmed whether it will proceed with the proposed transition to Layer 1 status.
