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

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. 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?

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to AMBCrypto.