Starknet, an Ethereum-based layer-2, recently reached another milestone with Total Value Locked (TVL) in smart-contracts using its solution exceed $10 million. This success demonstrates the growing adoption of DeFi projects built on Starknet and the trust placed in this innovative technology. In this article, we will explore in detail the reasons behind this growth, as well as how Starknet works and its impact on the scalability of Ethereum.
DeFi Projects Built on Starknet Hit $10M TVL
The recent rise in TVL on Starknet is a clear sign of the growing appeal of DeFi projects for this scalability solution. At the start of the year, Starknet’s TVL was around $800,000, but it has grown impressively to $10.49 million today.
This dramatic increase underlines the growing enthusiasm of developers and users for the advantages offered by Starknet.
Among the projects that contribute to Starknet’s dominance in terms of TVL, JediSwap stands out with a share of over 57%, representing over $6 million. JediSwap is an automated decentralized exchange (AMM – Automated Market Maker) fully open. This growing adoption of JediSwap and other DeFi projects on Starknet demonstrates the trust placed in this scalability solution.
Starknet – A Revolutionary Scaling Solution for Ethereum
Starknet is a scalability solution (layer 2) emptying solve Ethereum blockchain limitations, such as high transaction fees and slow processing times. Developed by the Israeli company StarkWare, Starknet is based on a concept called “Zero-Knowledge Rollups” (or ZK-Rollups). It uses STARK cryptographic proofs to enable off-chain calculations and data storage, while benefiting from the security guarantees of the Ethereum blockchain.
How Starknet works
Starknet works by aggregating hundreds of thousands of off-chain transactions through ZK-Rollups, then verifying them on the Ethereum blockchain at a significantly reduced cost. This approach achieves high throughput, low gas costs, and fast transaction times, while maintaining Ethereum’s characteristic security and decentralization.. Using the Cairo programming language, specifically designed for STARK proofs, developers can deploy complex business logic on Starknet, benefiting from its scalability and privacy advantages.
Starknet’s impact on Ethereum scalability
Starknet plays a vital role in scaling Ethereum by offering off-chain computing capabilities, which enables significantly reduce the load on the main blockchain. By moving calculations and data storage to Starknet, users can benefit from a smooth experience, with lower transaction fees and fast confirmation times. Additionally, developers can leverage advanced Starknet features, such as the Cairo programming language, to deploy complex decentralized applications without compromising Ethereum’s security and scalability.
With a TVL exceeding $10 million for DeFi projects built on Starknet, this layer-2 is positioned as a major player in the Ethereum ecosystem. Starknet’s impressive growth is a testament to its ability to deliver significant benefits in terms of scalability, lower transaction costs, and speed, while maintaining the security and decentralization of Ethereum. As more developers and users turn to Starknet, it is clear that this technology will play a crucial role in the future of decentralized finance.