July 06, 2023

Over 500K Wallets Bridge to Starknet, Depositing $65M

Published: July 06, 2023 at 4:30 pm Updated: July 07, 2023 at 12:24 am

Edited and fact-checked: July 06, 2023 at 4:30 pm

In Brief

Over 500,000 wallets have bridged to Starknet from Ethereum, depositing over $65M on the network, with ETH dominating bridged assets and JediSwap leading in Total Value Locked (TVL), while Starknet’s Alpha V0.12.0 update aims to enhance performance and scalability.

According to Nansen’s report, Starknet, a highly scalable Layer-2 solution, has witnessed an influx of over 500,000 unique wallets from Ethereum. This movement has resulted in deposits amounting to over $65 million on the network. Notably, the majority of these wallets have deposited small amounts, with 60% of depositors bridging between $1 and $100, and 94% depositing less than $1,000.

When it comes to the age of these wallets, most (~75%) are less than a year old. Here is the breakdown: 24.5% of wallets are 1-year-old or older, 41% are 3-12 months old, 26.6% are 1-3 months old, 6.78% are 1 week to 1 month old, and 1.1% are less than a week old.

Over 500,000 unique wallets have bridged to @Starknet from Ethereum, depositing over $65M on the network

But who are they? And, how does it break down?

Let's take a look on-chain… pic.twitter.com/TmEZawBWJW
— Nansen 🧭 (@nansen_ai) July 5, 2023

Dominant Bridged Asset and Top Protocols

ETH emerges as the most frequently bridged asset, making up nearly 75% of all bridged assets. This dominance is largely due to the high maximum cap imposed by StarkWare. When it comes to protocols, JediSwap leads by total value locked (TVL), boasting more than twice the TVL of the second place. Interestingly, the only non-automated market maker (AMM) protocol is the lending protocol zkLend, a native Layer-2 money-market protocol built on Starknet.

Starknet recently released Alpha V0.12.0 to boost its performance and scalability. This update targets Starknet’s Sequencer to mitigate throughput and latency challenges, marking a significant milestone in its quest to scale Ethereum.

The Future of Starknet

Despite its infancy and limited performance, Starknet has seen considerable activity. The platform anticipates improvements in transactions per second (TPS) in Q3, thanks to updates like Starknet 0.12. The network has witnessed a sharp rise in deposits since mid-March when the deposit caps were increased once again.

We are breaking records! 🐲🔥

The Starknet Quantum Leap will achieve unparalleled TPS rates on Ethereum.

🛠️⚡Starknet alpha v0.12.0 is now turbocharging Testnet!⚡🛠️

Witness a 10X surge in throughput, powered by Rust, enabled by @class_lambda https://t.co/Gp8GJKA6RD
— Starknet 👉👈 (@Starknet) July 5, 2023

The Significance of Starknet’s Rapid Growth: A Professional Perspective

The recent influx of unique wallets bridging from Ethereum to Starknet is an impressive testament to the potential and attractiveness of Layer-2 solutions. Starknet’s ability to attract over half a million wallets, resulting in deposits totaling over $65 million, signifies a noteworthy development in the blockchain space.

Ethereum has been grappling with scalability issues and high gas fees, and solutions like Starknet offer a promising alternative. The predominance of ETH as the most bridged asset underscores this narrative. Starknet’s user demographic, consisting mostly of new wallets less than a year old, suggests an increasing number of users exploring Layer-2 options.

Interestingly, the ascendance of JediSwap as the top protocol by TVL, outshining others by more than double, showcases the evolving dynamics of Decentralized Finance (DeFi). Simultaneously, the appearance of zkLend, a non-AMM protocol, hints at the expanding range of financial services offered on Layer-2 platforms.

The update to Alpha V0.12.0, targeting improvements in throughput and latency, signifies Starknet’s commitment to resolving scalability issues plaguing Ethereum. Such updates could significantly enhance the platform’s performance and potential for broader adoption.

Despite its relative infancy, Starknet’s growth trajectory appears promising. The increase in deposit caps and the resultant surge in deposits indicate growing user confidence. If Starknet continues to improve its TPS and scalability features, it could become a formidable player in the Layer-2 landscape.

However, it’s also important to remember the volatility and risks inherent in the crypto world. Investors and users should continue to practice caution and due diligence as the Starknet story unfolds.

Chainwire has successfully raised $12.4 million in its token presale.

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti