The native token of Starknet’s decentralized identity protocol sank 44% in the last 24 hours after its long-awaited airdrop distribution. According to blockchain analytics from SpotOnChain, selling pressure originated from recipients including major Starknet stakeholder Nethermind and trading firm Flow Traders.
What you'll learn 👉
Nethermind Unloads $2.3 Million Worth of Free Tokens
As a Lido node operator, Nethermind received over 10.25 million STRK tokens. SpotOnChain data reveals Nethermind wasted little time dumping tokens via Uniswap, offloading 959,100 STRK worth $2.31 million so far.
With over 9.24 million STRK still held in their wallets, another nearly 9.24 million STRK remains at Nethermind’s disposal. As one of the most active early sellers, though, their distributions could depress STRK’s price recovery in the short-term.
Flow Traders Sells and Deposits for Liquidity
Quantitative trading firm Flow Traders also showed prominent activity as an airdrop recipient of 5 million STRK tokens. Flow sent 3.5 million tokens directly to leading exchanges Binance and 100K STRK to Crypto.com – likely to supply liquidity for its algo trading operations.
Another 943,000 STRK valued above $3.5 million got sold across decentralized venues like Uniswap to capture profits. With decentralized identity solutions still nascent, the likelihood that Flow Traders holds onto remaining inventory long-term appears unlikely.
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Show more +Between greedy recipients immediately cashing out and traders focused on short-term gains, Starknet’s airdrop distribution failed to inspire buying interest. With so much locked value still circulating at heavy discounts, patient capital has an opportunity to accumulate a wider ownership stake.
But continued selling pressure may continue to act as an overhang on STRK until it is exhausted. Developers also maintain a long road towards proving real utility and mainstream adoption for self-sovereign identity.
The token has plunged to its current price of $1.72 from a high of $3 in the last 24 hours. STRK currently has a market cap of $1.25 billion.
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