Starknet token STRK gains 322% as it ponders Layer 1 independence

What drove the rally

Starknet currently runs as an Ethereum Layer 2. It processes transactions on its own network, then settles them back on Ethereum for security. The proposal, unveiled at the Token2049 conference, would cut that cord. Starknet would shift from an Ethereum-settled system to an independent Layer 1 chain. The stated goal is ambitious: to become the first fully quantum-resistant network by 2027.

CEO Eli Ben-Sasson's vision

CEO Eli Ben-Sasson has framed independence as a matter of control. His argument is that running a standalone Layer 1 would let Starknet set its own timelines for security upgrades, especially around post-quantum cryptography. As a Layer 2, the network's schedule is partly tied to decisions made on Ethereum.

Context matters

For all the fireworks, context matters. Even after the surge, STRK remains more than 97% below its all-time high, set in February 2024. The core risk is simple: the Layer 1 shift is still only a proposal. It needs technical work, governance approval and community feedback before anything changes. There is no confirmed launch timeline. For now, Starknet continues to settle on Ethereum.

Traders should watch

STRK's market cap now sits at several times the network's DeFi TVL. Traders should watch whether TVL, fees and user activity catch up over the coming weeks. There is also a bigger strategic question for Ethereum's scaling ecosystem. A prominent rollup openly weighing independence challenges the model of Layer 2 networks as extensions of Ethereum. If Starknet follows through, it would mean giving up the security guarantees that made Layer 2s attractive in the first place, and persuading validators, developers and capital that a standalone chain is worth the trade.