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STRK price soars 7% as Starknet officially starts Bitcoin staking integration STRK price soars 7% as Starknet officially starts Bitcoin staking integration

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STRK price soars 7% as Starknet officially starts Bitcoin staking integration – Crypto News

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5 months ago

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  • The upgrade allows Bitcoiners to participate in Starknet’s consensus.
  • The L2 has reduced the unstaking period to 7 days to enhance flexibility for stakers.
  • STRK has gained more than 2% following the announcement.

Cryptocurrencies traded cautiously on Monday while bracing for this week’s interest rates decision, poised to shape the markets’ trajectory in the upcoming sessions.

Bitcoin hovers near $116,000 as Ethereum’s stability above $4,600 fuels altcoin season debates.

Meanwhile, L2 platform Starknet has finally launched Bitcoin staking.

The team has briefly paused the staking platform to finalise implementation before its official release in the coming hours.

The announcement read:

The BTC staking integration has started! The staking protocol is now paused for a few hours while we implement this massive update.

With this move, the Ethereum-based Layer2 enables Bitcoin holders to participate in Starknet’s consensus for the first time.

The L2 focuses on ZK rollups and scalability, and integrating BTC staking reflects its dedication to decentralisation and chain-to-chain partnerships.

Native STRK turned bullish after the announcement.

The digital token rallied from $0.1299 low to $0.139 intraday peak.

That translated to an over 7% increase, demonstrating renewed interest in Starket’s ecosystem.

Starknet integrates BTC staking

The announcement highlighted that BTC will account for 25% of Starkent’s consensus power, whereas STRK dominated at 75%.

That guarantees balances while attracting more stakers.

Meanwhile, the staking protocol will support several BTC wrappers, including WBTC, tBTC, SolvBTC, and LBTC.

The community would vote for more options in the future through governance proposals.

That means the staking model can transform as Starknet’s BTC staking network grows.

The team has temporarily halted its staking protocol to onboard the upgrade.

Unstaking period reduced to 7 days

The upgrade comes with multiple good news.

One of the most striking adjustments is the substantial reduction of unstaking from 21 days to seven days for STRK and BTC stakers.

The improved exit time remains paramount for participants who value responsiveness in a fast-paced crypto market.

Users can react to price fluctuations quickly with a reduced lock period.

That will likely lead to new money-making opportunities, consequently boosting Starknet’s liquidity.

Flexible unstaking solves one of the main challenges for stakers.

Thus, Starkent can expect enriched TVL in the coming times.

What it means for Starknet and DeFi

The BTC staking launch could make Starkent a more attractive platform for cross-chain decentralised finance (DeFi) undertakings.

Notably, the L2 moves to tap into Bitcoin’s staggering liquidity base with plans to channel it into dApps built within the STRK ecosystem.

DeFi developers can leverage the BTC liquidity to build innovative lending platforms, yield strategies, and derivatives markets.

While most comments were positive, one X user criticised Starknet’s upgrade.

He believes that the BTC staking launch renders STRK worthless for holders.

“So STRK ends up as inflation fuel; printed to pay devs and now to reward wrapped BTC stakers? Where’s the actual value left for STRK holders?

Nevertheless, Starknet promises to democratise the DeFi landscape by tapping Bitcoin’s robust liquidity.

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