Crypto News

Whale Activity Suggests Starknet Dev Dumping $STRK, Contributing To 12% Price Decline

Whale activity from wallet 0x099, suspected to be linked to a Starknet developer, has raised concerns as 2.6 million STRK tokens, valued at $2.42 million, were deposited to Wintermute Trading OTC.

This wallet, believed to be associated with the Starknet team, received 149.5 million STRK, worth $530 million, from the StarkNet: Token Distributor contract over a year ago. Similar transactions occurred last month.

In the past three months, a total of 7.475 million STRK tokens, approximately valued at $8.729 million, were transferred to Wintermute Trading OTC. Despite these significant outflows, the wallet still holds a substantial 142.03 million STRK, valued at $132.36 million.

The consistent transfer of large volumes of STRK tokens to OTC platforms suggests ongoing selling pressure, contributing to the bearish trend. The STRK token supply has been increasing by 4.92% per month, and the market has been struggling to absorb this influx, exacerbating the price decline.

STRK TOken Price Action To Watch 

Moreover, with a fully diluted valuation (FDV) of $9 billion but only eight official bridge users, the market dynamics appear unsustainable. This mismatch between high supply and low demand has resulted in the STRK token price losing all support, plummeting by 12% today alone.

Investors are growing increasingly wary of the continuous dumping by major holders, which is undermining confidence in the token’s long-term value. The stark contrast between the high FDV and minimal bridge usage further adds to the skepticism surrounding STRK’s market viability.

As the Starknet team and associated entities continue to offload substantial amounts of STRK, the market could face further declines. This trend highlights the need for more robust demand-side measures to stabilize the token’s price and restore investor confidence.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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