After Starknet Promises Cheaper Transactions, STRK Price Rises by 6%

Starknet, a Layer 2 network operating on the Ethereum mainnet, released its 2024 roadmap on Wednesday, promising version upgrades and expansions without compromising security. This announcement seems to have been well-received by cryptocurrency market participants, as Starknet’s native token STRK still managed to rise despite a general market sell-off.

Starknet Reduces Transaction Costs for Users Following the successful implementation of Ethereum’s Dencun upgrade on March 13, transaction costs for Layer 2 chains like Starknet were reduced. In 2023, the Layer 2 community called for improved performance and reduced fees.

Starknet has committed to achieving these upgrades in 2024, enhancing the scalability of its protocol. Developers and users rely on increased Layer 2 chain throughput and reduced transaction fees.

The Layer 2 chain released Starknet Alpha version 0.12.0 in 2023, which increased throughput tenfold.

According to median transaction cost data in dollars for Layer 2 chains, Optimism ($0.0082), Arbitrum ($0.0090), and Zora ($0.0089) remain cheaper than Starknet ($0.0142). Layer 2 chains aim to change this status with the upcoming version upgrades.

The v0.14.0 upgrade will introduce Volition, Applicative recursion, and DA compression. These three development upgrades focus on storing data on Starknet rather than the base chain (Ethereum), reducing end-user costs through batching, and decreasing the data storage and compression footprint of the Layer 2 chain on the Ethereum mainnet. Therefore, users can expect lower transaction costs for the protocol in the fourth quarter.

STRK Price Reacts Positively to Roadmap Release Starknet’s price reversed a short-term downtrend, with a daily candle closing price above $1.947. The STRK/USDT uptrend faces three key resistance levels. The Layer 2 token may encounter resistance at $2.143 (4-hour support/resistance level), $2.295 (1-day S/R), and $2.670 (1-week S/R).

The STRK price reached this year’s peak of $2.670 on March 14. The Moving Average Convergence Divergence indicator shows green bars above the zero line, supporting the bullish argument for STRK’s price.

The Relative Strength Index (RSI) is at 50.09, in the neutral zone. Notably, the RSI has risen in sync with the price. This indicates a balance between bullish and bearish positions for STRK.

In a downward scenario, if the STRK price closes below the $1.967 level on the 4-hour candlestick chart, the bullish argument may be invalidated. In this case, the next downward level would be the low of $1.750 on March 19.

Sentiment: Positive