Starknet TVL crashes 3.7x to $42M after getting 93% vote to become L1

AMBCrypto2026/10/24 06:03

By:AMBCrypto

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!

A welcome pack worth 6200 USDT for new users! Sign up now!

Starknet got an overwhelming vote approval to become an independent layer 1 (L1) chain, but suffered a massive DeFi activity blow. The Ethereum L2 saw its total value locked (TVL) drop by 3.7x (73%) from $158M to $42M on 22nd October.

The crash was triggered by Extended, a decentralized perpetual futures exchange, which migrated from Starknet to Circle-backed Arc blockchain. The platform had a strategic partnership with Circle and sought higher performance.

Extended migrated $120M in TVL, suggesting that it was the sole driver of Starknet’s DeFi activity.

@media only screen and (min-width: 0px) and (min-height: 0px) { div[id^="bsa-zone_1774359638628-7_123456"] { min-height: 50px; transition: min-height 0.3s ease; } } @media only screen and (min-width: 640px) and (min-height: 0px) { div[id^="bsa-zone_1774359638628-7_123456"] { min-height: 90px; } }

Starknet TVL crashes 3.7x to $42M after getting 93% vote to become L1 image 0

Source: DeFiLlama

Similarly, Starknet’s stablecoin liquidity dropped by 75% from $147M to $37M over the same period. The bridged volumes also crashed, underscoring the dominance the Extended had in the L2.

Will Starknet hold up after 93% support for L1 migration?

That said, Starknet plans to transition from an Ethereum L2 to an independent L1. The Starknet team, led by Eli Ben-Sasson, first floated the idea in early October.

Ben-Sasson argued that Ethereum’s post-quantum plan is too slow and may undermine the chain’s security plans amid increasing double threats from advanced AI models and quantum breakthroughs.

A formal proposal for the same was put to a governance vote on 15th October. The proposal got massive 93% support, urging Starknet to research ways to become an L1.

Starknet TVL crashes 3.7x to $42M after getting 93% vote to become L1 image 1

Source: Starknet governance

Following the vote, Sasson said StarkWare and the Starknet Foundation will allocate resources to begin the research. He added,

STRK will remain the token of the network. Any path to transition to an L1 will be brought to a community vote. This is a huge shift and a milestone, but the AI and quantum challenges ahead require it.

Despite the overwhelming vote approval, however, STRK’s price chart was surprisingly negative.

Starknet’s STRK reverses October gains

In early October, the L1 proposal sent STRK rallying by over +120% from $0.05 to $0.12. However, what followed was intense profit-taking, triggering a 58% loss and effectively reversing October’s gains.

Starknet TVL crashes 3.7x to $42M after getting 93% vote to become L1 image 2

Source: STRK/USDT, TradingView

In fact, the pullback slipped below the EMA (exponential moving average) band. Simply put, STRK flipped bearish and shed another 7% on 22nd October. Unless the broader market sentiment improves, STRK could stay below the EMA bands for a while.

Final Summary

Starknet TVL has crashed by 73% after Extended perps platform migrated $120M to Arc.
Team plans to begin L1 research pathways, but STRK reversed all of October’s gains.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

In four months, Korean retail investors' "ammunition stockpile" has dropped by 36.5%, returning to levels seen at the beginning of the year. Although retail investors have collectively made net purchases exceeding 75 trillion won, they are still absorbing the sell-off, but the influx of new funds has dried up, and the replenishment rate lags far behind the consumption rate. Combined with the KOSPI plunging nearly 20% this month, continued net selling by foreign investors, and concerns over AI-related credit risks, the Korean stock market may find it difficult to see a sustained rebound in the short term without support from private investors' funds.

华尔街见闻•2026/10/24 08:46

Apple Prints TD Sequential Sell 9 — Last Two Led to 15.66% and 13.63% Corrections

Coinsprobe•2026/10/24 06:42

The Collapse of "Consensus Trading" and the Birth of a New Consensus! Goldman Sachs Explains: Why Institutions Are Currently Significantly Reducing AI Holdings

The extremely crowded trade of "going long on AI, short on everything else" is undergoing a painful unwinding—markets are no longer satisfied with the "burn rate narrative." Mega-scale cloud providers must deliver real, visible revenue conversions alongside $1.1 trillion in capital expenditures. A power gap of 40-50 gigawatts, rising capital costs, and a macro paradigm shift from an era of "overspending" are turning AI trades from a matter of faith into a harsh test of monetization.

华尔街见闻•2026/10/24 06:26