Starknet recently reaffirmed its commitment to the Ethereum network, but the price of the STRK coin faced pressure following the news. This led to confusion among market participants. Starknet, known for its dedication to the Ethereum ecosystem, is a decentralized Layer 2 validity rollup. Despite its commitment to Ethereum, Starknet is also considering entering the Bitcoin market.
In a social media post, Starknet stated that it will continue to focus on scaling Ethereum, as it has been doing since the release of its initial Validity Rollup. The company emphasized its commitment to working on ZK as a public good and growing Ethereum effectively.
Addressing rumors of a potential switch from Ethereum to Bitcoin or supporting a fork, Starknet clarified that its goal is to act as a bridge between the two crypto ecosystems. The company’s objective remains consistent in creating STARK proofs to enhance the scalability and integrity of the blockchains they support.
Starknet believes that Ethereum and Bitcoin are the most secure and decentralized networks, representing the ideals of cryptocurrencies and blockchain technology. Therefore, any advancements made by Starknet will benefit both the Bitcoin community and the Ethereum environment.
Starknet aims to serve as a connection between the two major cryptocurrency ecosystems, without splitting out from StarkWareLtd. The company will function as an execution layer to scale Ethereum and Bitcoin simultaneously, rather than adding a new layer to Bitcoin or creating a unique token for the Bitcoin environment.
Following the news, the price of the STRK token initially increased by 2%, but later dropped by 6% during the trading day. Starknet is currently valued at $1.21 and is ranked No. 68 in the cryptocurrency ecosystem. With a circulation supply of 1,140,483,200 STRK, Starknet’s market value is $1.4 billion. Technical analysis predicts that Starknet will cost at least $1.75 by 2024, with a maximum price of $2.00 and an average trading price of $1.81.