Ethereum Layer 2 Starknet Sees 550% TVL Surge in 2024 Driven by STRK Token and DeFi Expansion

Starknet, an Ethereum Layer 2 scaling solution, has experienced impressive growth so far in 2024, according to a report from blockchain analytics platform Messari.

The network‘s total value locked (TVL) has surged by 550% year-to-date, reaching $252 million, largely driven by the public launch of the STRK token in February 2024. Starknet’s ecosystem also is expanding across DeFi, gaming, and infrastructure.

One of the standout initiatives propelling this growth is the DeFi Spring program, which was designed to incentivize participation across Starknets decentralized finance protocols. The first phase of DeFi Spring distributed 40 million STRK tokens between February and October 2024, resulting in a 300% quarterly TVL increase in Q1 2024.

Phase two, which began in October 2024, allocated an additional 50 million STRK tokens to liquidity providers.

Starknet DeFi TVL Growth and STRK Token Distribution

Notably, the DeFi TVL on Starknet reached an all-time high of $330 million in Q2 2024 but saw a slight dip in Q3, in line with the broader market correction. However, when measured in STRK terms, the DeFi TVL grew by over 100% quarter-over-quarter, reaching $571 million. Diverse participation in DeFi protocols has been a key factor in this expansion.

Starknets DeFi ecosystem now includes four major protocols: Nostra, Ekubo, zkLend, and Nimbora. These protocols helped raise its DeFi Diversity Score from 3 to 4 in Q3 2024.

Another significant development is the upcoming launch of STRK staking, which will go live in December 2024. This will enable community participation in network governance and security.

Starknet‘s native token, STRK, was initially launched on Ethereum in late 2022 but became publicly available through the Starknet Foundation’s Provisions Program in February 2024. The program distributed over 700 million STRK tokens to approximately 1.3 million eligible addresses.

Notably, the market price of STRK has been underwhelming, especially for early holders. The token has been down 72.87% since March and is currently trading at $0.637. However, this represents a significant 30% improvement over the last four weeks.

Starknet Stablecoin Growth

Starknets growth is also reflected in its stablecoin market, which saw its market cap grow by 64.1% quarter-over-quarter, reaching $97.9 million by Q3 2024. USDC and USDT dominate the stablecoin liquidity on Starknet, comprising over 98% of the market.

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