Ethereum L2 Starknet (STRK) Enters Top 100 Coins by Market Capitalization

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As a seasoned researcher with extensive experience in the cryptocurrency market, I have closely monitored the recent developments surrounding Starknet (STRK) and its impressive price surge. In the past week, STRK has experienced a 10% increase in price, reaching $0.6111 at press time, and a whopping 44.34% jump in trading volume, pushing it into the top 100 cryptocurrencies by market capitalization.

As a researcher studying the cryptocurrency market, I’ve noticed an intriguing development with Starknet (STRK), an Ethereum Layer 2 protocol. In just the past week, STRK has experienced a significant price increase that propelled it into the ranks of the top 100 cryptocurrencies by market capitalization. This upward trend translated to a remarkable 10% surge in its token price. At present, STRK is recording a 6.63% gain and is being traded at $0.6111. Additionally, there has been a noticeable spike in STRK’s trading volume, which nearly doubled in value compared to previous figures.

Bullish Metrics Surge for Starknet

In just one day, there was a significant increase of 44.34% in STRK‘s trading volume. As a result, its market capitalization experienced a rise of 6.63%. Currently, the market cap of STRK is estimated at $892,343,659, positioning it as the cryptocurrency with the 73rd largest market cap. This figure reflects the total worth of STRK in circulation and demonstrates its growth.

The token’s metric indicates an impending price rise and signifies rising demand. The substantial price jump Starknet experienced over the past week significantly boosted derivatives market activity, as evidenced by the increasing futures open interest, now at approximately $51 million.

Significant to note, the open interest of a future asset represents the current number of unsettled futures contracts in existence for that particular asset. A surge in open interest signifies an uptick in traders entering new positions. Over the past week, there has been a 9% growth in this metric for the token. Nonetheless, some STRK traders remain skeptical about the token’s ability to maintain its price rally.

Based on STRK‘s funding rate readings during the review period, it was observed that traders have shown a greater inclination towards taking short positions rather than long ones. This trend was determined by the predominantly negative funding rate, implying that most market participants anticipate a price decrease for the token instead of a rally.

An Extended STRK Price Rally or Decline?

Currently, certain key technical indicators on the one-day chart for STRK are signaling that the price increase could continue.

The Chaikin Money Flow (CMF) of the token is experiencing a significant increase in tandem with Starknet’s price surge. This indicates that the recent price rise is driven by genuine demand for the crypto asset from investors. Moreover, the Accumulation/Distribution (A/D) line for STRK has likewise been trending upward, suggesting robust buying activity and strong support for the token’s price growth.

If STRK‘s current trend persists, it may reach $0.63 or possibly exceed that price within the next few weeks. Conversely, there is a possibility that the token could dip down to $0.5.

Notably, the recent price increase isn’t unique to STRK but affects many Ethereum Layer 2 tokens. In the past week, the values of L2 tokens have experienced a substantial rise. For instance, Optimism (OP) and Arbitrum (ARB) have seen double-digit percentage gains, with OP up by 26% and ARB up by 16%.

As a crypto investor in Arbitrum, I’m pleased to see its impressive recovery. Previously, the price action and other metrics had given cause for concern, but now, I find myself applauding its resilience.

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2024-07-15 14:27